REPORT: Hyundai Equus coming to the States in July 2010, priced under $60,000

[jry]

YEH:

Huh? How can there only be a spread of $2k btwn the base and fully-loaded version?


I was thinking only of a base V8 VS loaded V8. You get a car that is extremely loaded with not much left to order in terms of options.
If all of these cars came optioned the same or there weren't a lot of things to add on, your cost of manufacturing them goes down.

[jbernie]

Originally Posted by jry

YEH:

Huh? How can there only be a spread of $2k btwn the base and fully-loaded version?


I was thinking only of a base V8 VS loaded V8. You get a car that is extremely loaded with not much left to order in terms of options.
If all of these cars came optioned the same or there weren't a lot of things to add on, your cost of manufacturing them goes down.

sounds pretty valid to me, options list could be really short... sunroof, upgraded stereo (beyond what should be a top quality system)... maybe 2 wheel choices... otherwise everything is standard.

[YEH]

Originally Posted by jry

I was thinking only of a base V8 VS loaded V8. You get a car that is extremely loaded with not much left to order in terms of options.
If all of these cars came optioned the same or there weren't a lot of things to add on, your cost of manufacturing them goes down.

While that worked w/ the 4.6 Genesis sedan (putting aside the fact that Genesis also came in the 3.8 w/ 3 trim levels), I don't think that will work for the Equus unless Hyundai is planning to strip a lot of the goodies (such as the reclining and massaging rear seats) since pricepoint will be critical for Hyundai to make any semblance of sales.

If Hyundai intends to keep the reclining and massaging rear seats and other such goodies for the top of the line Equus at a price point nearing $60k, Hyundai will likely need 2 other trim levels w/ one starting near $50k (even better if it starts in the high $40k range).

[mbukukanyau]

I think this vehicle will be a Dud, reason being this

.

It will likely be a Tundra like phenomenon, just like the Hyundai Azera and the current Genesis, or Nissan Titan...

After the initial cool aid buyers from the brand flock in and buy, sales just go down the tubes.


Watch and see if this will not be true.

[jry]

Originally Posted by YEH

While that worked w/ the 4.6 Genesis sedan (putting aside the fact that Genesis also came in the 3.8 w/ 3 trim levels), I don't think that will work for the Equus unless Hyundai is planning to strip a lot of the goodies (such as the reclining and massaging rear seats) since pricepoint will be critical for Hyundai to make any semblance of sales.

If Hyundai intends to keep the reclining and massaging rear seats and other such goodies for the top of the line Equus at a price point nearing $60k, Hyundai will likely need 2 other trim levels w/ one starting near $50k (even better if it starts in the high $40k range).

Well...... if those options all use the same mechanics, then, the economies of scale kick in for both vehicles. Now, you will reach a point where you cannot produce the feature any cheaper. If they can pack all of those goodies in a 40 K Genesis then they'll get it done in a 48-50 K Equus.

[member12]

All I hear from GM fans is that foreign car buyers lack a certain open mindedness to try an American car again. And now all of you are dismissing this car because it's a Hyundai....and those that don't dismiss it hope that it fails.

You all need to get down to the local Hyundai dealer and drive a Genesis instead of trashing something you've never experienced.

Hyundai is the car company that's making Toyota sweat, and speaking from experience, the Genesis is a great car. I am confident that Hyundai will make another great luxury car.

[Sal Collaziano]

Originally Posted by member12

All I hear from GM fans is that foreign car buyers lack a certain open mindedness to try an American car again. And now all of you are dismissing this car because it's a Hyundai....and those that don't dismiss it hope that it fails.

You all need to get down to the local Hyundai dealer and drive a Genesis instead of trashing something you've never experienced.

Hyundai is the car company that's making Toyota sweat, and speaking from experience, the Genesis is a great car. I am confident that Hyundai will make another great luxury car.

Seriously. These are some of the same people that think the Lexus LS460L is a rebadged Toyota Camry...

[a_v_s]

Originally Posted by AMERICA 123

Don't forget they pick up a 10% VAT subsidy coming out of Korea

Please don't confuse the Tax System used by Asia and the rest of the world, with the Tax System used in the US...

The VAT rebate is not a subsidy. In the US, sales tax is collected at time of sales, from the purchaser. With cars, it is usually collected when you register the car...

VAT on the other hand is collected from the manufacturer at time of manufacture. When such a product is exported, it will not be "consumed" in the domestic market, therefore the VAT is refunded back to the manufacturer. This doesn't happen in the US, because our government doesn't collect sales tax from the manufacturer, nor does it collect it at time of manufacture.

[AMERICA 123]

I'm tempted, sorely tempted to answer real short here...... but I'm going to try something new.

*****

1. ) I believe you misunderstood the contents of the post.

2. ) There is no confusion on this end in regards to the use of VAT, or the use of the words "VAT subsidy", or how the fact that 151 out of 152 of the USA's trading partners use their use and our none use of VAT to their advantage and how that also creates an enormousness disadvantage for US manufactured exports.

More directly -

Not only did you ( I hope ) miss interpret what was posted, but your understanding of why 'VAT subsidy' is appropriate here in of itself is missing as well.

One illustration, over simplified against its own purpose will make most of it clear.

All names are fictional and some are deliberately misspelled.

Any resemblance to anyone living or dead is purely coincidental.

***

'Hyundai Manufacturing Korea' designs, develops and builds an Equis.

They can sell it to any of their Sales organizations located throughout the world.

Benedict Arnold Megacheesescro, the token ignorant and corrupted American automotive press person in the room on launch day, asks why 70% of this vehicle's production is still targeted for the USA in light of the cancellation of Hyundai's intended channel of distribution, meaning the recently halted Premium upmarket brand.

Kwan, his Korean handler at the event, puts down his fourth Hite Prime beer rather deliberately while hiding his exasperation and decides to answer that question while idly thinking to himself " - it can't hurt. We already own him "

So on a cocktail napkin he writes a few things down and decides to see if he can enjoy himself at Bene's expense whose been a PIA all day and damaged a car during the ride and drive while mumbling something about Jaguar, Lexus, and Mercedes Benz.

Here is what Kwan wrote down.

VAT Subsidy net pricing effect

Hyundai Sales Korea VAT net pricing effect +10 -10 +10 = +10%

Hyundai Sales UK VAT net pricing effect +10 -10 +19 = +19%

Hyundai Sales Germany VAT net pricing effect +10 -10 +16.5= +16.5

Hyundai Sales EU country number 26 VAT net pricing effect +10 -10 + 24%= +24%

Hyundai Sales USA VAT net pricing effect +10-10 +00= 0%

****

We can do more on this and what I intended to convey in the post you partially quoted..... which is not about the above if you want to.

[CUtiger08]

So the fact that our goverment doesn't add an extra tax on cars, thereby making all cars regardless of national origin notably cheaper for consumers, is somehow considered a subsidy on foreign cars by their goverments??

If Congress wanted they could easily add a VAT on all cars to our system. And I'm sure everyone would love paying an extra 10-20% in taxes on each and every single vehicle sold in the US, especially right now during a recession that's hitting the auto industry just as hard as any other sector.

[Cadman]

I've always said the brand name should be Equus for this vehicle along with the Genesis.

A couple things about this car.

This looks corny and CHEAP. They should put a STICHED colored logo here

and...



They should use a flat hood emblem instead of the hood ornament.

Other than that, I have to give it to Hyundai, they have the guts to put this out there, and it juuuust might pay off for them.

[1G6]

Originally Posted by member12

All I hear from GM fans is that foreign car buyers lack a certain open mindedness to try an American car again. And now all of you are dismissing this car because it's a Hyundai....and those that don't dismiss it hope that it fails.

I dismiss all cars not produced by our companies or their affiliates, and hope all the foreigners fail miserably.

[tbirderic]

Originally Posted by Cadman

I've always said the brand name should be Equus for this vehicle along with the Genesis.

A couple things about this car.

This looks corny and CHEAP. They should put a STICHED colored logo here

and...



They should use a flat hood emblem instead of the hood ornament.

Other than that, I have to give it to Hyundai, they have the guts to put this out there, and it juuuust might pay off for them.

My take is that they should do away with the Equus logo embossed on the seats, and the hood ornament.

[King Riffle]

Originally Posted by johnstarnes

I like it....I feel it is quietly beautiful and very coherent visually.

I like it too. It's a very Asian luxury sedan. To the point where I'm surprised the side mirrors aren't up near the headlights. It strikes me as something of a modern take on vehicles like the Toyota Century.

[YEH]

Originally Posted by jry

Well...... if those options all use the same mechanics, then, the economies of scale kick in for both vehicles. Now, you will reach a point where you cannot produce the feature any cheaper. If they can pack all of those goodies in a 40 K Genesis then they'll get it done in a 48-50 K Equus.

But that can be done in 3 trims w/ more of a spread on price (remember, here are actually 3 trim levels over the base for just the V6 Genesis sedan).

Also, Hyundai left a good no. of the "goodies" out of the USDM Genesis (such as adaptive cruise control and adjustable air suspension) due to pricing concerns.

Unless Hyundai is going to omit things like reclining and massaging rear seats in the USDM Equus, then it would be better to have at least 3 trim levels.