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Hyundai mulling new Lexus-fighting upscale crossover

The idea of Hyundai marketing a luxury automobile might have seemed ridiculous a decade ago, but that was before the Genesis sedan, Genesis coupe and Equus came along. Now that buyers seem more accustomed to the notion of an upscale Hyundai, the Korean automaker is said to be considering launching a luxury crossover to take on the likes of the Lexus RX and Cadillac SRX.
The report comes from our compatriots at Edmunds, who spoke to Dave Zuchowski, head of Hyundai's North American unit, who said that the project is not yet part of the company's plan, but that "it is something under consideration."
The last time Hyundai entered that territory was with the Veracruz (pictured above), a model that was sometimes compared to but ultimately failed to compete with the Lexus RX when it was sold between 2006 and 2011. The Veracruz was effectively replaced by the seven-passenger Santa Fe with which it shared its underpinnings. This new project being considered would similarly be based on the latest Santa Fe, and the challenge Hyundai is facing once again would be to position it as a sufficiently upscale product to warrant a premium sticker price.

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.

Hyundai recalls 24k Genesis sedans over electrical issue

An electrical problem has prompted Hyundai and the National Highway Traffic Safety Administration to issue a recall for the 2015 Genesis. The problem arises when water leaks into the taillight assembly, which – in a way that would only make sense to an electrician – could cause the incorrect gear to be displayed on the instrument panel or even a delay in switching from Park to Reverse or Drive. Needless to say, if the driver doesn't know into which position the transmission has shifted, that could increase the likelihood of a crash. The issue affects an estimated 24,400 units of the 2015 Genesis in the United States – specifically those manufactured between February 21, 2014, and January 24, 2015. Owners of those vehicles can expect to hear from their local dealer to arrange the installation of additional waterproofing pads to prevent the troublesome moisture from leaking in to the taillights. RECALL Subject : Water may Leak into Rear Combination Lamp Assembly Report Receipt Date: FEB 19, 2015 NHTSA Campaign Number: 15V097000 Component(s): ELECTRICAL SYSTEM , EXTERIOR LIGHTING , POWER TRAIN Potential Number of Units Affected: 24,400 Manufacturer: Hyundai Motor America SUMMARY: Hyundai Motor America (Hyundai) is recalling certain model year 2015 Genesis vehicles manufactured February 21, 2014, to January 24, 2015. Water may leak into the rear combination lamp assemblies and cause an incorrect gear display on the instrument panel or a delay in the engagement of the selected gear when the vehicle is shifted from Park to Reverse or Drive. CONSEQUENCE: If the incorrect gear is being displayed, the vehicle may move in an unintended direction, increasing the risk of a crash. REMEDY: Hyundai will notify owners, and dealers will apply pads to prevent water intrusion into the combination lamp housing, free of charge. The manufacturer has not yet provided a notification schedule. Owners may contact Hyundai customer service at 1-855-671-3059. Hyundai's number for this recall is 128. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.