Hyundai Motor Co, the South Korean car manufacturer has confirmed on Wednesday that it will introduce a new international luxury car brand named Genesis. The company is targeting high profit margins in order to help it reverse the slide in earnings.
Hyundai rose to the prominent state on a reputation for delivering affordable yet reliable cars. It said that the Genesis brand will have a lineup that will start with a couple of sedans this year. The lineup will grow to six models by the year 2020. It is claimed that all these sedans will be equipped with high-performance and eco-friendly powertrains. Four of the sedans that will be launched later are under development and of these, one is a luxury sedan, one is a sports coupe and two are sports utility vehicles.
Hyundai is the fifth largest auto manufacturer across the world in terms of sales along with Kia Motors Corp affiliate. It is seeking to stop its drop in profit. Apart from curtailing the drop in profits, Hyundai is also looking forward to boost its profit margins. The new Genesis lineup of cars will definitely help the Chairman of the company Chung Mong-koo’s ambition come to fruition as it will take the manufacturer more upmarket. The former chief designer, Luc Donckerwolke at the Bentley brand will be joining Hyundai as the senior vice president in the first half of 2016 to work on the Genesis brand of cars and other models as well.
The success of the new Genesis brand is uncertain, but the growth of the high end car market and its high profitability shows the stiff competition that is faced from the global car manufacturers. As per the sources close to the company, the US based executives of Hyundai are concerned that the company is rushing its move of launching the standalone premium car brand, Genesis.