Reading about Hyundai's plans to break into the Luxury Car market reminds me of the days when Acura first launched and the parts under the hood still said "Honda" on them, it was a mistake that slowed down Acura's initial progress towards being recognized as a legitimate luxury Automaker. I'm also reminded me of the launch of the VW Phaeton which was a failure despite the Phaeton being a great car, the problem was never the car but the fact that the shoppers VW was pursuing don't shop at VW dealerships. The car probably would've been a success if it had been marketed as an Audi 

 

(From the WSJ): "ANN ARBOR, Mich. -- Hyundai Motor Co. is aiming to sell about 50,000 Genesis luxury sedans in the U.S. in 2009, a senior executive said on Tuesday.

 

The vehicle, which started arriving in U.S. dealerships in June, represents a significant gamble for Hyundai, which is known for offering small, economical models rather than alternatives to BMW and Lexus.

 

But the Korean company thinks the Genesis will attract a class of "non-conformist" consumers who want luxury cars but are not concerned about the brand they drive, said John Krafcik, vice president of product development.

 

Speaking to reporters here, he said the goal of selling 50,000 Genesis sedans and coupes in the U.S. next year is "reasonably achievable." The question, he added, is "are there enough of these confident nonconformists out there for us."

 

As a premium, rear-wheel drive sedan, the Genesis faces some well-established tough competitors such as BMW AG's 5 Series. So far this year, BMW has sold more than 27,000 5 Series.

 

Hyundai will market its car as a great value. It sells for $33,000 to $42,000 -- about $20,000 less than a 5 Series.

 

Other rear-wheel drive sedans in the same price range as the Genesis are also well entrenched, such as the Chrysler 300.