Mercedes C-Class rival coming from Genesis

Hyundai’s newly announced Genesis luxury brand will take on the Mercedes-Benz C-Class and BMW 3 Series in the premium mid-size sedan market, according to Hyundai Motor America CEO Dave Zuchowski.

Zuchowski, who as recently as last year denied Hyundai would establish Genesis as a standalone brand, confirmed an ‘entry-level sedan’ would be one of the six Genesis models the company has promised by 2020, starting with next month's Equus-replacing G90 limousine.

He said the all-new medium sedan, which is expected to be rear-wheel drive, will spawn other mid-size models including an SUV to rival the Audi Q5 and BMW X3 and, perhaps, a new-generation Genesis coupe, which Hyundai has already previewed in concept form (pictured).

“We do have in our plans more of an entry-level sedan coming, that would be BMW 3 Series-type size, and maybe derivatives off of that with crossovers and stuff, (so) it’s not all larger vehicles,” Hyundai's US CEO told Wards Auto.

While North America, a market with exposure to Genesis since its 2008 inception, is expected to take all six new models, it’s still not known which vehicles will be available in right-hand drive.

However, all three mid-size models – sedan, coupe and SUV – as well as next year's G80, a facelifted version of the sole Genesis large sedan sold here, are considered favourites for the Australian market.

The sixth Genesis model is expected to be a full-size SUV, and Hyundai's latest 246kW 3.8-litre V6, new 272kW twin-turbo 3.3-litre V6 and upgraded 313kW 5.0-litre Tau V8 are likely to feature across the range.

All models are believed to be based on dedicated monocoque platforms and Hyundai says it has no plans for a smaller, compact car or SUV.

Zuchowski also confirmed that Genesis models will not in all of North America's 834 Hyundai dealerships, and that the Korean company will not force dealers to create stand-alone showrooms for the vehicles.

“As we bring all this new product out, it will not go to all dealers,” he told Wards.

Currently about half of Hyundai's US outlets sell the Equus flagship sedan, and dealers who represent the Genesis brand in future will need to meet similar standards including showroom investment, specific staff training and valet/concierge services.

This shop-in-shop, limited dealership approach contrasts with Volkswagen's Audi brand and Japanese premium brands like Nissan's Infiniti and Toyota's Lexus, the Australian chief of which this week told motoring.com.au that a successful luxury brand must "dedicate resources".

Our sources say Hyundai’s new corporate dealership identity will give its retailers more scope to accommodate and give prominence to the Genesis brand, which launches here next year, and that success-based expansion would be a natural progression.

The path to that success remains to be seen, as it’s not yet known if the Genesis brand will approach the market as a direct European competitor, or focus on value and customer service as per Lexus and Infiniti, which are successful in North America but have struggled for market share in Europe and Australia.

Hyundai's recent Genesis announcement marks an about-face after years of denials it would build a C-Class challenger or establish a dedicated luxury brand, which it now says was delayed due to the 2008 GFC.

The Korean giant's Genesis strategy – including its first 3 Series rival – was revealed in 2011 by an Australian Hyundai product planning executive who suddenly resigned from the company days later.