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Genesis cars win accolades, offer value — so why are sales so bad?

My high-school buddy Brent Cormier was so smitten with the Genesis G80 when he saw it at an event I hosted at SXSW in 2016 he bought a used 2013 Hyundai Genesis a short time later and fell in love with the car. "It surpasses my every expectation," said Cormier, a self-described "renaissance man" who owns and runs a real estate agency with his wife Laura, is a food service executive chef and part owner of Austin-based Thin the Herd Guitars. "I was locked into Mercedes and Audi for 10 years," he added. "And felt trapped in an endless pit of maintenance costs." After owning the Genesis over the past two years — including using it as an Uber and Lyft driver to earn extra cash — Cormier learned what some frugal luxury sedan buyers and a handful of car reviewers have discovered: Genesis offers great bang for the buck compared to other premium brands and can compete with the best in terms of performance, features and comfort. Hyundai's luxury brand also earned a prominent third-party endorsement last week when for the first time Genesis topped J.D. Power's 2018 APEAL study, surpassing German luxury-performance icon Porsche. The APEAL study (which stands for Automotive Performance, Execution and Layout) "measures owners' emotional attachment and level of excitement across 77 attributes," ranging from performance to comfort, and asks nearly 68,000 owners of new 2018 models to score vehicles on a 1,000-point scale. In its second year ranked as a stand-alone brand, Genesis earned an APEAL score that bumped it up 15 points to 884 and helped push it past Porsche — and past BMW, Lincoln, Mercedes-Benz, Audi, Volvo, Cadillac, Land Rover and Lexus, in order of ranking. Last month, Genesis also topped J.D. Power's Initial Quality Survey (IQS) for the first time this year. And both its models were awarded Top Safety Pick Plus ratings by the Insurance Institute for Highway Safety, among 11 Plus ratings in all for Korean vehicles. Despite high J.D. Power rankings and great reviews, Genesis U.S. sales were off 50 percent for the first six months of 2018 compared to 2017, and in June Genesis sold only 796 vehicles — the first time U.S. numbers dropped below 1,000 in a month. Part of Genesis's APEAL and IQS success can be attributed to its small product lineup: just two models, the G80 and G90 sedans, with a third, the 2019 G70, launching later this year. And while those numbers may help in J.D.

Audi considering other variants, turbo V6 for R8

More details from the Audi R8 event at Spain's Ascari circuit have met the Internet, and they provide more intel on the supercoupe will evolve over the second generation. First, they note some small differences in stance with this new car, being wider than the current car and sitting 30 millimeters (1.18 inches) lower. Compared to its Lamborghini Huracan brother, it gets three extra centimeters in the wheelbase. Filling out the power numbers, the 'entry-level' V10 engine at launch rolls out 540 horsepower and 399 pound-feet of torque, does the 0-60 mile per hour dash in 3.5 seconds, and hits a top speed of 200 mph. The V10 Plus model rocks 620 hp and 412 lb-ft, which slices 0.3 seconds off that acceleration time and adds five more mph to the top speed. They'll transfer their power through a seven-speed S-tronic that shifts faster than before, and it will in turn send power through an electronically-controlled clutch at the front axle and a constantly variable limited-slip differential at the rear axle. The power split is said to default to 42/58 front-to-rear, but 100 percent of the torque can be sent fore or aft. Benchmarked against the 991-series Porsche 911, driving sensations travel through an electromechanical steering setup that can be had with a variable rack if preferred, leading to standard 19-inch wheels with the option of 20-inchers and tires developed specifically for this car. A Performance setting offers dry, wet, and snow modes; that first setting turns the ESC off except for situations of impending doom, and Audi racer and test driver Frank Stippler told Top Gear that understeer is reduced, to which TG added "it oversteers at will." Stippler said it's "a lot closer to the GT3 race car than ever before," and even though it's "a lot" less intense than the Huracan, it's just as fast on the track. His estimate is that the new R8 will lap the Nurburgring between ten and 15 seconds faster than the current car. R8 technical lead Roland Schala said the new chassis opens up new avenues of development because "there's no problem to change it," mentioning models like a Clubsport or Superleggera as no longer forbidden. Differentiation could come from a wider engine mix, too. Markets like China need smaller displacements, so Audi's twin-turbo V8 is expected to join the line-up at some point, bringing 500 horsepower.

Audi investing $30.3 billion through 2018 for product expansion

How does Audi plan to reach two million units in annual sales and pay for the 11 new models it's adding to its lineup - an expansion that may include models named SQ2, Q9 and F-Tron? By increasing its investment to 22 billion euros ($30.3 billion US) between now and 2018. That figure represents an increase of about 500 million euros over the previously planned outlay, according to a report by Automotive News, and that could be due to Audi wishing to goad the momentum that pushed it to 1.5 million annual sales two years ahead of schedule.
It's also about staving off the challenges from BMW and Mercedes-Benz. Now that BMW has been able to turn some of its attention away from its "i" series of Megacity cars, it will reportedly spend more than planned in 2014 as it continues the rollout of ten all-new vehicles and 15 new-generation vehicles through the end of next year. Mercedes, having been dropped to third in the sales race, is preparing to add 13 new cars over the next six years.
Audi's money is going into technology, into product like the next-generation TT and the Q1 and production expansions and upgrades all over the world. The expenditure represents just under a fourth of Volkswagen's 84.2 billion-euro ($115.7 US) outlay devoted to taking the number-one global automaker title away from General Motors and Toyota by 2018.