Hyundai is considering whether or not to do a line of premium SUVs using the underpinnings of the Genesis. Reuters has learned from sources the company is considering a proposal made internally to build SUVs using the Genesis platform as way to elevate Hyundai's overall brand image and crack the high-margin SUV market.
But there is an air of caution at the company. Hyundai hasn't done so well when it comes to larger SUVs. Their previous attempt, the Veracruz, was introduced back in 2007. However, the company pulled the model out in 2013 due to poor sales. Meanwhile the company was still selling the Veracruz in South Korea, but will end production at the end of the next month according to the plant's union newspaper.
Aside from the poor sales, a source says spiking gas prices and the poor equity of the Hyundai name in large SUVs give the company concern.
"We are timid when it comes to bigger SUVs," said the source.
When reached for comment, Hyundai confirmed the end of production of the Veracruz, but said "this does not mean we are giving up on a large SUV line-up."
"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."