William Maley

Genesis News: Hyundai Exec Says Luxury Brands Focus Way Too Much On Tech

19 posts in this topic

The head of Hyundai's N performance division, Albert Biermann said luxury automakers are too focused pm technology that doesn’t give value to customers.

“It’s all marketing, first of all. “How many people really buy it later on? Much of this exists for media, to give a hype, to show the technology level. But how many people really buy it later on?" said Biermann to Australian outlet Drive.

“If the tech will fail, you’re just adding the burden to the buyer, right?”

We can assume some of the tech Biermann is referring to are things like gesture controls for the infotainment system or perfume diffusers. Biermann also brought up the example of a camera that looks at the road and makes adjustments to the suspension, calling it stupid.

“In our G90 you will not find any air suspension, or active roll-bars, or active whatever. A camera sensing the road, and this stuff. It’s stupid. We have a solid Hyundai steel platform, tonnes of high-strength steel – okay, it’s a little bit heavier than the other cars – and we have adjustable shock absorbers, and that’s it. We still outpace the S-Class in the double lane-change in the Consumer Reports. We almost beat the BMW, without all the fancy stuff,” said Biermann.

Biermann explained that Genesis will be focusing on simple technologies to make them reliable. He said Hyundai's chairman, Chung Mong-koo said he wants all Hyundai and Genesis models to be “like new” after a decade on the road.

On one hand, Biermann has a point. Luxury cars are notorious for being expensive to keep on the road, partly due to all the technology equipment fitted to them. On the other hand, those technologies are a big selling point on these vehicles. Buyers use these to justify the price and they are a cool party trick to show to friends and family.

Source: Drive.com.au


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Luxury cars are notorious for being expensive to keep on the road, partly due to all the technology equipment fitted to them. On the other hand, those technologies are a big selling point on these vehicles. Buyers use these to justify the price and they are a cool party trick to show to friends and family."

This is so true of Luxury and especially of all the new Nanny devices that have been added over the last 10-15 years. I question the real need as driving is a privilege earned and if you cannot focus on the driving without playing with your smartphone, then you need to forget driving and take the bus, taxi, lyft, uber, etc.

Driving is a privilege earned and we can do without all the added nanny devices.

Feel the nanny devices are needed, then keep them on the self driving auto's and let the ICE, Hybrid & EV's that can be fun to drive for drivers who enjoy pure driving.

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"The G90 doesn't have twin turbos like an S-class"

"The G90 doesn't have cameras to read the road or air suspension"

"The G90 doesn't have a hybrid power train"

"The G90 doesn't have autonomous drive technology"

Translation is the G90 is slower, less powerful, less fuel efficient, and has worse ride quality than an S-class.

Beirmann is trying to say technology and power and interior materials don't matter, because his car has none of those things.  Probably why his car doesn't sell very well.

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Well, this brings up an interesting point: what makes a "luxury" vehicle? If you look at extremely exotic and luxurious vehicles such as the new Rolls Royce Phantom, you will see the use of cutting-edge technology combined with craftsmanship.  While I agree that gesture controls are a gimmick, the trend is going towards technology packages within luxury vehicles. That said...I totally agree that with all this new tech means it is a matter of time before something goes wrong.  

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'luxury' vehicles today are all about increasingly complex electronics that will be obsolete in a few years and will fail expensively in a few years.   They are intended to be leased or owned for only a few short years under warranty then traded for the next new thing...

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11 hours ago, smk4565 said:

"The G90 doesn't have twin turbos like an S-class"

"The G90 doesn't have cameras to read the road or air suspension"

"The G90 doesn't have a hybrid power train"

"The G90 doesn't have autonomous drive technology"

Translation is the G90 is slower, less powerful, less fuel efficient, and has worse ride quality than an S-class.

Beirmann is trying to say technology and power and interior materials don't matter, because his car has none of those things.  Probably why his car doesn't sell very well.

Have you been in a G90?

Doubt it, so your just blowing out your butt statements that have no facts.

Do you have their product road map to know that they will not have any of the things you have stated?

There are plenty of nontechnical luxury items, that are pure luxury in quality and craftsmanship. 

Post a video of you driving a G90 and then driving an S class back to back to compare and show how they handle on near identically spec'd cars.

I have not driven a G90 so I would not state it is not a luxury ride just because currently it does not tick off the check box's of a badge snob ride.

THIS IS ONE OF THE BEST STATEMENTS from the story:

 “The car in the luxury car segment, they show all the racetrack talent, but which 2.2-tonne luxury segment car will ever see the racetrack?

“We don’t do this kind of stuff. We work for the customer first of all, and not so much for the media. Of course we do some stuff for the media, but first of all we do that stuff for the customer, that we think has reasonable value for the money.

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The Genesis cars are surprisingly nice.  I am especially excited about the G70.  My brother's luxury cars have indeed been high maintenance (09 CTS, 11 A5, and 15 ATS).  I actually have him interested in the G70 with the 3.3 turbo 6 and AWD.  Can't wait until it hits lots. 

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1 hour ago, dfelt said:

Have you been in a G90?

Doubt it, so your just blowing out your butt statements that have no facts.

Do you have their product road map to know that they will not have any of the things you have stated?

There are plenty of nontechnical luxury items, that are pure luxury in quality and craftsmanship. 

Post a video of you driving a G90 and then driving an S class back to back to compare and show how they handle on near identically spec'd cars.

I have not driven a G90 so I would not state it is not a luxury ride just because currently it does not tick off the check box's of a badge snob ride.

THIS IS ONE OF THE BEST STATEMENTS from the story:

 “The car in the luxury car segment, they show all the racetrack talent, but which 2.2-tonne luxury segment car will ever see the racetrack?

“We don’t do this kind of stuff. We work for the customer first of all, and not so much for the media. Of course we do some stuff for the media, but first of all we do that stuff for the customer, that we think has reasonable value for the money.

You know good and damn well he has not sat in one. He only makes the comment he did because the S Class was called out for the truth. In no way was Biermann trying to directly compare the two. He is spot on with the nanny features that push car prices into another level of financial retardedness. You can have luxury without the many gadgets and if you need stupid $h! like autonomous driving and self parking, then what you need is a limo driver because clearly you are too self absorbed or too busy texting on your phone to be bothered with actually driving. 

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There are good points to what he says and also an admission as to why the Genesis cars may always be at the lower end of the scale in the luxury segment.

Not that I am or would have Genesis at the top of my list for purchase, I would consider it now if I would take what he says at Face Value.... and if someone can tell me why the last sentence has three words in it that have a relation to each other (like a "six degrees of separation' type deal) outside of car talk, you get bonus points...

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13 hours ago, smk4565 said:

"The G90 doesn't have twin turbos like an S-class"

"The G90 doesn't have cameras to read the road or air suspension"

"The G90 doesn't have a hybrid power train"

"The G90 doesn't have autonomous drive technology"

Translation is the G90 is slower, less powerful, less fuel efficient, and has worse ride quality than an S-class.

Beirmann is trying to say technology and power and interior materials don't matter, because his car has none of those things.  Probably why his car doesn't sell very well.

It's also $21,000 less expensive. For 21k extra it better have all of those extra things. 

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56 minutes ago, lengnert said:

There are good points to what he says and also an admission as to why the Genesis cars may always be at the lower end of the scale in the luxury segment.

Not that I am or would have Genesis at the top of my list for purchase, I would consider it now if I would take what he says at Face Value.... and if someone can tell me why the last sentence has three words in it that have a relation to each other (like a "six degrees of separation' type deal) outside of car talk, you get bonus points...

Married to a Korean who came here at 13 but is still fluent and is a certified Psychologist, I find the last sentence in the story to be normal English as a second language talk from the asian rim. I see this in Japan, China and Korea.

I assume your talking about this sentence:

Of course we do some stuff for the media, but first of all we do that stuff for the customer, that we think has reasonable value for the money.

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14 hours ago, smk4565 said:

"The G90 doesn't have twin turbos like an S-class"

"The G90 doesn't have cameras to read the road or air suspension"

"The G90 doesn't have a hybrid power train"

"The G90 doesn't have autonomous drive technology"

My Escalade ESV Platinum has only 1 of these things the Air Suspension and I can tell you it is not only a luxury ride, but handles well and the handling comes in regards to both the quality of this luxury SUV that is built well and to my driving skills as a person who enjoys driving and reading the road and DOES NOT need those Nanny devices to handle the driving.

Take my Escalade any day over your overblown S-Class. Better Built, longer lasting, more comfortable as a Road trip auto than the S-Class.

Having been all over the Asian rim, I can tell you now that other than badge snobs in China, the bulk of China, Japan and Korea want comfort and smooth ride, not a race car stiff ride. 

I see the Koreans building an autoline that will give their customers the ride comfort they want. Cadillac does this with ride mode, many others too including MB, so you cannot say this is not a luxury car when he only simply points out that Genesis DOES NOT NEED the Nanny devices to compete as a smooth comfortable luxury ride.
@Drew Dowdell & @William Maley

I would like to request that in the future if you guys could please keep in mind and include in your writeups comparison of these auto's to the rest of the luxury makers so we have your butt in the seat feeling and impression as to how the Genesis luxury line compares please

I think this is an important comparison of a Luxury auto without technical Nanny devices to a luxury auto with.

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2 hours ago, dfelt said:

Married to a Korean who came here at 13 but is still fluent and is a certified Psychologist, I find the last sentence in the story to be normal English as a second language talk from the asian rim. I see this in Japan, China and Korea.

I assume your talking about this sentence:

Of course we do some stuff for the media, but first of all we do that stuff for the customer, that we think has reasonable value for the money.

Nah, you are going too clinical and smart for me, dfelt.

I was referring to the second to last sentence in my post.

The answer:  Genesis is a band whose lead singer is Phil Collins.  Phil Collins released an album entitled "Face Value".  Now I feel stupid for writing that question because in retrospect, it was frivolous and inane and had nothing to do with the main article!  LOL

Edited by lengnert
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5 hours ago, lengnert said:

Now I feel stupid for writing that question because in retrospect, it was frivolous and inane and had nothing to do with the main article!  LOL

Dont feel stupid.

Welcome to my world I say!

I do that all the time.

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I've said this for many a yerr:  luxury cars should be effortless to operate.  They should be serene in nature... so many of these gadgets are too complicated and therefore will go unused.  The whole point of luxury, to me, is to coddle the owner, not addle him.

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On 9/21/2017 at 8:54 AM, dfelt said:

Have you been in a G90?

Doubt it, so your just blowing out your butt statements that have no facts.

Do you have their product road map to know that they will not have any of the things you have stated?

There are plenty of nontechnical luxury items, that are pure luxury in quality and craftsmanship. 

Post a video of you driving a G90 and then driving an S class back to back to compare and show how they handle on near identically spec'd cars.

I have not driven a G90 so I would not state it is not a luxury ride just because currently it does not tick off the check box's of a badge snob ride.

THIS IS ONE OF THE BEST STATEMENTS from the story:

 “The car in the luxury car segment, they show all the racetrack talent, but which 2.2-tonne luxury segment car will ever see the racetrack?

“We don’t do this kind of stuff. We work for the customer first of all, and not so much for the media. Of course we do some stuff for the media, but first of all we do that stuff for the customer, that we think has reasonable value for the money.

I have driven the 2010 Hyundai Genesis V8, it was my 2nd choice actually when I was car shopping 4-5 years ago.  For a sort of full size car it had pretty good ride/handling, the V8 moved it pretty easily, not a sports car in any way, but a nice daily driver.  No where near as good as an E-class though, which is why I bought an E-class.

I have sat in the G90, there is a lot of low rent materials in that car, and the stuff they used to try to make it look expensive is just bling and chrome, that doesn't really make it luxurious, just flashy.  I would say the G90 is about on par with a Continental or maybe CT6 at most.  It falls short of any other full size luxury sedan.

So if the interior isn't up to par, why even test drive it, especially when the specs show their V8 isn't up to par either.   Their optional engine makes 383 lb-ft of torque, less than a base model 2007 S-class.   Not good when your top engine is 10 years behind the competitor's base engine. 

On 9/21/2017 at 11:08 AM, ccap41 said:

It's also $21,000 less expensive. For 21k extra it better have all of those extra things. 

Then Beirmann should not compare his car to an S-class.  Compare to Lincoln or Acura, or Infiniti, go after them.

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On 9/21/2017 at 5:30 PM, ocnblu said:

I've said this for many a yerr:  luxury cars should be effortless to operate.  They should be serene in nature... so many of these gadgets are too complicated and therefore will go unused.  The whole point of luxury, to me, is to coddle the owner, not addle him.

I totally agree with you about the Coddle part. So much so, I decided to see if OcnBlu Coddled showed up in a search. :roflmao: Too funny of the results.

OcnBluCoddled.png

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Thankfully, those photos have been expunged from the public record.  ;)

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      Press Release is on Page 2


      HYUNDAI TRANSFORMS RETAIL CAR BUYING WITH SHOPPER ASSURANCE
      Industry-First Nationwide Commitment to Modernizing Car Shopping Offers More Options and Convenience for Customers Launches Today in Miami, Orlando, Dallas and Houston and Will Roll Out to All Hyundai Dealers in Early 2018 FOUNTAIN VALLEY, Calif., Oct. 10, 2017 – In building on the brand promise to provide customers with a better experience, Hyundai introduces Shopper Assurance, an industry-first nationwide program that streamlines and modernizes the car-buying experience. Today, a majority of car buyers are frustrated with the automotive retail experience and are looking for new ways to shop for and buy a new car. Shopper Assurance focuses on four elements that make the often arduous process of purchasing a car easier, faster and worry-free.
      Transparent Pricing: Participating dealers post the fair market pricing (MSRP minus incentives and any dealer offered discounts) on the dealer websites, so the customer knows exactly what the market pricing is for the vehicle. This can reduce the time it takes to negotiate a price and can eliminate the frustration of widely advertised incentives not being available on dealer websites. Flexible Test Drive: Customers are given the option to conduct a test drive for any new vehicle on their own terms through Hyundai Drive, a platform that allows the test drive to be scheduled by contacting the dealer on their website, by phone or by using a custom-built app (in available markets). The selected test-drive vehicle can be at a location of the customer’s choosing, such as their home, their office or a coffee shop. Streamlined Purchase: Reduces the time customers spend at the dealer by allowing car buyers to complete most of the paperwork online prior to visiting the dealership for a vehicle in the dealer’s inventory. This includes applying for financing, obtaining credit approvals, calculating payment estimates and valuing trade-ins. Three-Day Money Back Guarantee: Any customer who is not satisfied with their purchase is given a three-day buy back period to return the car for a full refund, contingent upon a dealer inspection and the vehicle having fewer than 300 miles since the purchase/lease date. This turns potential second thoughts into peace of mind. “For nearly a decade, the word ‘Assurance’ has been synonymous with Hyundai and represents our efforts in redefining the car ownership experience,” said Dean Evans, chief marketing officer, Hyundai Motor America. “Shopper Assurance is the next step in that tradition and is car buying made simple. We expect this to be a differentiator, as our research showed that 84 percent of people would visit a dealership that offered all four features over one that did not. It is the future of car buying, and our commitment to creating a flexible, efficient and better way to purchase a car in partnership with our dealer body.”
      “We’ve listened to our customers, and they want convenience and simplicity when it comes to buying a car. Shopper Assurance is going to give our dealers the tools we need to exceed the expectations of today’s shopper,” said Andrew DiFeo, chairman, Hyundai National Dealer Council and dealer principal, Hyundai of St. Augustine. “With a strong lineup of new cars and CUVs, we expect that Shopper Assurance will give us a competitive advantage and help turn prospects into buyers. We are creating a modern purchasing process where transparency and convenience are paramount.”
      Shopper Assurance is available for any new model in the Hyundai lineup and will initially launch in dealerships in four markets: Miami, Orlando, Dallas and Houston. It will be live nationwide by early 2018.
    • By William Maley
      Hyundai Motor America Reports September Sales
      Best All-Time Tucson and CUV September Sales Three-Millionth Elantra Sold During the Month And Donated to a First Responder Hero in Baytown, Texas Genesis Sales Up 43 Percent FOUNTAIN VALLEY, Calif., Oct. 3, 2017 /PRNewswire/ -- Hyundai Motor America today reported September sales of Hyundai and Genesis branded vehicles of 57,007 units, a 14 percent decline compared with the company's best all-time September in 2016. CUV sales continue to grow with both Tucson and Santa Fe up compared with a year ago and Tucson achieving a record September, up 38 percent year-over-year. The overall monthly sales decline continues to be attributed to a reduction in fleet sales that were down 37 percent from a year ago.
      SALES BY BRAND
        Sept-17
      Sept-16
      2017 YTD
      2016 YTD
      Hyundai
      55,271
      65,399
      496,638
      584,980
      Genesis
      1,736
      1,211
      15,102
      2,708
      TOTAL
      57,007
      66,610
      511,740
      587,688
       
      HYUNDAI BRAND HIGHLIGHTS
      "The Hyundai Tucson continues to be a standout with another month over 10,000 units, leading to our best CUV September of all time," said John Angevine, director, National Sales, Hyundai Motor America. "While our car-to-SUV mix is improving, it's still in an inverse position to the industry. Despite that, we've retained our retail market share for the year."
      September was a busy month for Hyundai with several significant product and technology launches, and corporate initiatives. On the product and technology front, the all-new 2018 Accent made its U.S. debut at the Orange County Auto Show, a new Rear Occupant Alert system was unveiled, Elantra was named highest in overall owner experience for vehicle technology by J.D. Power and the first SEMA display car was released, the i30N that successfully competed in the 24-hours of Nurburgring. Hyundai Motor America also welcomed its new president and CEO, Kenny Lee, opened more than 100 EV charging stations at its headquarters, gave its three-millionth Elantra sold to a first responder hero in Texas and is preparing a major announcement for its renowned Assurance program on Oct. 10.
      Hyundai Hope On Wheels, Hyundai's non-profit organization committed to the fight against pediatric cancer, launched its annual campaign in honor of National Childhood Cancer Awareness Month in September as well. Throughout the month, Hope On Wheels awarded 40 research grants to children's hospitals across the country, adding $8.5 million in critical funds to the field of pediatric cancer research.
      HYUNDAI MODELS
      Vehicle
      Sept-17
      Sept-16
      2017 YTD
      2016 YTD
      Accent
      7,379
      7,495
      44,641
      62,200
      Azera
      237
      419
      2,611
      3,775
      Elantra
      14,401
      19,382
      143,067
      157,050
      Equus
      1
      60
      20
      1,297
      Genesis
      4
      845
      1,132
      21,663
      Santa Fe
      11,420
      11,350
      95,655
      98,298
      Sonata
      9,889
      15,347
      107,718
      155,279
      Tucson
      10,118
      7,333
      82,839
      65,333
      Veloster
      685
      3,168
      10,526
      20,085
      Ioniq
      1,137
      0
      8,429
      0
       
      GENESIS BRAND HIGHLIGHTS
      September Genesis sales totaled 1,736, a 43 percent increase over last year.
      "Our G80 and G90 sedan lineup saw strong demand as the summer sales season wound to a close," said Erwin Raphael, general manager of Genesis in the U.S. market. "Additionally, we couldn't be more proud of the accolades our brand collected during that time. Our brand or products gathered awards from distinguished third parties like J.D. Power, AutoPacific and Strategic Vision while our product's safety capabilities were recognized by the Insurance Institute for Highway Safety as well as the National Highway Traffic Safety Administration."
      GENESIS MODELS
      Vehicle
      Sept-17
      Sept-16
      2017 YTD
      2016 YTD
      G80
      1,367
      1,201
      11,856
      2,698
      G90
      369
      10
      3,246
      10
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