Hyundai Continues to Study Genesis CUV; Plans U.S. Product Blitz

PARADISE VALLEY, AZ – Rumors of a Hyundai Genesis-based CUV persist, reignited last month at the Geneva auto show by the debut of the sleek Intrado concept and a Hyundai Europe executive’s comments.

But Hyundai Motor America CEO Dave Zuchowski says the automaker is only studying the segment and is unsure whether it could sell a premium CUV next to a non-premium one in the same showroom.

“We had a conscious strategy to not establish a secondary-distribution channel for premium products, and by doing that it limits some of the things we can do with the products,” he tells WardsAuto during an interview at a ’15 Genesis sedan media preview here.

Zuchowski uses Toyota’s Highlander and Lexus RX CUVs as examples. He reasons that Toyota can charge a premium for the RX, even though it uses the same platform as the Highlander, because the Japanese automaker has separate Toyota and Lexus showrooms.

A Genesis CUV would sit on the same showroom floor as Hyundai’s existing Santa Fe CUV, which could make the former a “much more difficult sale,” Zuchowski says.

“So even though there may be good white space there, we think the traditional value proposition Hyundai is known for may (become) a little bit more difficult if you do that.”

As Hyundai’s CUVs are the better performers in Europe, Hyundai Europe Chief Operating Officer Allan Rushforth said in Geneva that a Genesis people-mover would do wonders for the brand’s nascent luxury leanings in the region.

“Public awareness of Hyundai tended to correspond with (public) awareness of our SUVs – so theoretically, the gap between those vehicles and where we want to be with Genesis is less than perhaps some of the vehicles that came later and have still got a reputation to build,” Rushforth told Australia’s Car Advice website. “I suppose that’s a long way of saying (a Genesis CUV is a) maybe.”

Rushforth said the Intrado hydrogen fuel-cell concept had some design cues that would work on a Genesis CUV.

Aggressive New-Product Blitz Planned

While that Genesis variant is a maybe, Hyundai promises a slew of fresh models for the U.S. in the next two years.

Already known for having one of the most ambitious new-product blitzes in recent memory from 2010-2012, Hyundai aims to top it from 2014-2016.

“It's actually a more aggressive product cadence than what drove our growth the last five years,” Zuchowski says.

In total, Hyundai plans seven U.S. product debuts through 2016, including three models this year, two next year and two in 2016.

The three new Hyundais due this year already are known.

First to debut will be a Tucson fuel-cell vehicle, limited to select areas of Southern California.

Zuchowski says a dedicated website for the vehicle has attracted 155,000 unique visitors and resulted in 3,500 hand-raisers for the CUV.

Hyundai is interviewing hand-raisers to make sure they are within range of the six public hydrogen refueling stations in the region. A couple hundred people thus far have been prequalified to lease the vehicle.

“This is going to be a walk before you run (situation),” Zuchowksi says, noting the rate of expansion of hydrogen stations will determine future California markets for the CUV.

Hyundai later this month begins retailing the second-generation Genesis luxury sedan. The model gets an entirely new look and more content, including all-wheel drive on the V-6 grade.

Following the Genesis will be the ’15 Sonata midsize sedan, expected in late summer or early fall. Hyundai's best-selling model in the U.S., the car also gets new sheet metal and better driving dynamics, Zuchowski says.

The 2015 and 2016 debuts are less clear, although, in keeping with Hyundai’s 4-to-5-year product cycles, a new iteration of the Elantra compact and Tucson CUV are likely, as are new versions of the Genesis Coupe and Equus sedan.

[email protected]