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Why Kia doesn't need a premium brand

Hyundai's creation of the Genesis luxury brand means it and fellow Korean brand Kia have finally hit the mainstream in the U.S. – as far as products are concerned – after nearly three decades of trying. Which is about as long as it took Toyota and Nissan to roll out Lexus and Infiniti, respectively. It's history repeating itself. Genesis is supposed to be the way Hyundai's premium models get the respect they deserve, without carrying the baggage of a name associated with frugality. Hyundai has, in fact, built up a reputation over the last decade or so for cars that compete head-on with class leaders, rather than aim to be 90 percent as good for 75 percent of the price. And because Kia shares a number of components with Hyundai, its vehicles have also steadily become not only better mainstream vehicles, but have continued to aim higher than their price points. Does Kia need to follow now in its parent's steps with a prestige brand to market its most expensive models? I'm aware of the Kia K900, the company's deepest foray into luxury territory notably occupied by Lexus. Kia, however, has consistently been pushing this $60,000 full-size luxury sedan along with $0 down, low monthly payment lease deals. Turns out there really aren't many people looking for a full-size Kia luxury sedan. Or maybe they're just waiting to get it for $20,000 in a couple of years. Consider the K900 and Genesis when I convince you Kia already makes upscale cars to rival those with premium badges. They just don't happen to be its most expensive model. Shortly after Hyundai's announcement it would spin its luxury models off into the Genesis brand, I spent a few days with a 2016 Kia Sorento SXL. And I'm willing to call it a more convincing attempt to get people out of luxury cars than the K900. Driving the Sorento is not an emotional experience. You feel parental driving it, thinking you might've forgotten to pick your kids up until you remember you don't actually have kids. But after settling into the nicely stitched and perforated leather seats, you respect its comfort, quiet and amenities. The headliner is soft, the stitching on the dash top is convincingly real and everyone is impressed by the sharp graphics on the touchscreen and the slick powered shade that reveals an expansive glass roof. A Kia Sorento costing more than $46,000 sounds absurd until you wonder how much better an Acura MDX or Lexus RX350 is when those cost as much as $10,000 more.

Hyundai Genesis sedan recall swells to 43,500

Hyundai is expanding a recall we reported on a few weeks back regarding some 2009 to 2012 Genesis Sedans. In our earlier post we mentioned some 40,000 units were affected, but that only 27,500 were covered under the original, voluntary recall.
Now, the recall has grown, according to the National Highway Traffic Safety Administration, with Hyundai asking the owners of 43,500 affected vehicles to report in for service. The issue relates to brake fluid that doesn't prevent corrosion of the hydraulic electronic control unit, a problem that has led to 23 complains, a documented crash for one owner and another owner losing control of their vehicle.
Owners of the affected sedans are being notified by Hyundai and asked to report to dealers to have the brake fluid replaced. Naturally, the work will be done free of charge. Take a look below for the official NHTSA bulletin.

Hyundai considering upscale Genesis-based crossover

Hyundai already offers upscale entries in its lineup such as the Equus and Genesis (pictured above), but unlike many brands in North America, the company lacks a luxury crossover to further compliment the sedans. The latest signs suggest that hole in the lineup might be filled in the near future, though. According to four, unnamed company insiders speaking to Reuters, the Korean automaker might build a posh CUV on the Genesis' platform. "We are considering developing premium, large SUVs based on customers' needs. We plan to respond to the fast-changing market centered around SUVs by beefing up our SUV line-up," said a statement from Hyundai to Reuters. The idea stems from a proposal last year to pounce on the booming luxury CUV market. However, this strategy doesn't have a green light yet, and it could be years before the crossover sees showrooms. Potentially holding things back is the brand's concern about its power in the luxury market. "We are timid when it comes to bigger SUVs," a source said to Reuters. Hyundai also remembers the struggles of the Veracruz in North America, and the vehicle was eventually replaced by the three-row Santa Fe. Finally, there's a worry that higher gas prices around the time of the proposed debut could be a problem, too. Even if the plans for the luxury model don't pan out, this is hardly the end of Hyundai's upcoming crossover plans. A compact CUV is reportedly under consideration for North America, and there's the much-rumored Santa Cruz unibody pickup potentially on the way, too.