Reuters reported Tuesday that Hyundai will spin off Genesis as a global premium brand to compete with German automakers such as BMW, Mercedes and Audi. The news agency quoted sources “close” to the organization and said an announcement could come as early as Tuesday.
Hyundai didn’t comment on the report.
According to Reuters, Hyundai would launch Genesis with the Genesis sedan — and possibly coupe — and the Equus sedan. Genesis would add a mid-size SUV about 2019.
According to the sources, Genesis would use Hyundai’s dealer network and be sold alongside Hyundai models — at least for now.
“A tiny line of upscale products is going to be sold under the Genesis brand name. It’s not a physically separated brand with its own channel,” the supply told Reuters.
Hyundai has toed the waters with spinning off its personal luxury brand prior to. Analysts say that it might take years prior to a committed luxury line would turn into profitable. According to reports, Toyota spent a lot more than $ five billion to start Lexus, which didn’t make a profit for a decade.
The luxury vehicle market is considerably larger than it was in 1989 and a lot more profitable.