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Weekly Recap: Hyundai spins off Genesis as new luxury division

Hyundai is creating a standalone luxury division that will use the Genesis name in an ambitious move that could bring the Korean automaker more profits, sales, and prestige. The Genesis division launches in December in Korea, followed by a rollout in other markets, including the United States in 2016. The brand will have six models by 2020. They will all start with a "G" for Genesis, then have a number, like 70, 80, or 90 to represent their segment, Hyundai said. The vehicles will also get more upscale design to differentiate them from other Hyundais. Luc Donckerwolke, a veteran Volkswagen Group designer who joined Hyundai earlier this year, will oversee a new Prestige Design unit at the company. The current winged Genesis emblem will be restyled and worn by all of the brand's luxury vehicles. Hyundai says its new division will focus on technology, customer service, and will have "refined performance character." The current Genesis sedan offers a 5.0-liter V8 that makes 420 horsepower. Naturally, Hyundai is optimistic for its new Genesis brand, but it will face immediate challenges as it enters a crowded and competitive market with a long list of entrenched competitors. Brands with storied histories like Cadillac and Lincoln have struggled recently, and even top-selling brands Mercedes-Benz, BMW, and Lexus aren't immune to potential troubles. Rumors have persisted that Hyundai harbored luxury ambitions since it first launched the Genesis sedan in 2008. OTHER NEWS & NOTES SEMA shows aftermarket's strength Further evidence of the auto industry's momentum was on display at the SEMA show this week as carmakers and tuners again turned out in full force. The Ford Cobra Jet Mustang, a Chevy Silverado customized by Kid Rock, and a Kia Forte Koup Mud Bogger were among the prominent displays. The show attracts more than 140,000 people per year, including 2,400 exhibitors, who come to buy and sell products. SEMA is a barometer for customization trends in the aftermarket, a key reason automakers attend. "They represent things we are thinking about and want to get some exposure," Mopar boss Pietro Gorlier said. Honda previews next-gen Ridgeline In other SEMA news, Honda previewed the next generation of its Ridgeline pickup at the show with a race-prepped vehicle that will compete in the Score Baja 1000 this year. The hood, side profile, roof, and front fascia offer hints of what the new truck will look like in production trim. Art St.

No S660 for US, but Honda wants sporty cars

Honda, best known lately for being a mainstream player rather than the brand that brought us the CRX Si, NSX, Integra Type-R, and S2000, apparently wants to builds sporty cars for the US again. With that in mind (or not), Honda has ruled out bringing the tiny, sporty S660 roadster across the Pacific. "I wouldn't put my chips on [the S660]," American Honda Executive Vice President John Mendel told Automotive News. At nearly 11.1 feet long, the S660 slots in between the 12.8-foot Mazda MX-5 Miata and the 8.8-foot Smart ForTwo. Yet Mendel says the tiny two-seater wouldn't work here. "When the practicalities of the market come in, and the car only so big, that might not be the best car for the US market," Mendel said. "It might be better for India or China or somewhere else." Honda is considering its options here in the US, though. As AN reports, after his takeover earlier this year, new CEO Takahiro Hachigo promised more sporting models, like the new, US-bound, 300-horsepower Civic Type R. And while it's no secret that Honda has filed patent drawings for a mid-engine model, Mendel offered little to indicate that it'd become a reality. Calling the project from Honda's Silicon Valley research and design facility a "design study," Mendel wouldn't answer AN when it asked whether this new model was successor to the S2000 or a more attainable, lower-powered NSX. He did, however, say his company was getting pressure from dealers over the lack of verve in the company's lineup. "They want anything in the sports car world," Mendel told AN. "They're going, 'Gimme a sports car.' They want a retractable hardtop; they want a high-horsepower $20,000 sports car. Because that's the nature of what they do." There you are, Honda. Your dealers want it, which means your consumers are probably are asking for it, and your CEO wants it, too. Make something happen.

Will states start to prevent you from registering cars that have pending recalls?

The impact of 2014 – henceforth known as Year of the Recalls – will have long-ranging consequences on the auto industry. One of the biggest changes, though, might not be in the way manufacturers inform the government of pending recalls or in the way Uncle Sam punishes automakers that violate its rules, but in the ability to sell cars with pending recalls. And strangely enough, the charge is being led by an automaker. Honda Executive Vice President Rick Schostek, pictured above, argued during a meeting of the Senate Transportation Committee that the government needs to take a role in mandating that consumers have recall services performed. That could include withholding registration for vehicles with pending recalls, Bloomberg reports. Honda is just one of the automakers currently embroiled in the massive Takata airbag recall. "It's a good idea," safety advocate Clarence Ditlow said, according to Bloomberg. "California won't give you a registration if you have an emissions recall. Why not a safety recall?" "Honda is going to use any innovative tools to find customers and get these recalls done," Schostek told the Transportation Committee. The exec, aside from echoing Ditlow's viewpoint, also argued for requiring dealerships and garages to inform vehicle owners of incomplete recalls, regardless of the service provided. Schostek also made an argument that state governments could step in, as well. Whatever ends up happening, it's fair to say that between Takata and General Motors, the future of recalls for American consumers are set for significant changes. News Source: BloombergImage Credit: J. Scott Applewhite / AP Government/Legal Recalls Honda Ownership Safety