Though the final name hasn't been locked down, this 2011 Hyundai Equus prototype will take aim against the likes of the Mercedes-Benz S-Class and Lexus LS.
Few automakers have gone through the ups-and-downs of Hyundai, the South Korean carmaker long known for its cheap, if not always reliable, automobiles. The automaker has made significant improvements in quality, in recent years, but nonetheless shocked the industry with the successful launch, last year, of its Genesis Sedan – subsequently named North American Car of the Year by a panel of 50 U.S. and Canadian journalists.
Last week, Hyundai dropped another bombshell, announcing it will move even more up-market with next year’s planned introduction of the Equus, (Click Here for that story) a sedan targeting such Premium Luxury competitors as the Mercedes-Benz S-Class and Lexus LS.
TheDetroitBureau.com was given a chance to get behind the wheel of a pre-production version of the new car, and found it surprisingly refined yet sporty and fun to drive, despite a few hiccups – notably a slight lurch upon take-off – that are often found on early prototypes. Despite all the upgrades, it still seems a stretch for Hyundai to go after some of the world’s finest automobiles, so we took Hyundai America’s marketing chief, Joel Ewanick, along for a drive – and a chance to ask about the car and the carmaker’s plans for its introduction.
The 2011 Hyundai Equus has a decidedly up-market feel and will come loaded with a wide-range of advanced technology.
TDB: We know Genesis has done quite well, but we have to admit that taking on the likes of the S-Class seems quite a stretch.
Ewanick: With the success of Genesis, we’re very happy with the types of customers we’re getting – 50% of them coming from brands like Lexus, Porsche, BMW and Mercedes. We’ve built a great deal of confidence we can take things to another level. Our folks, in Korea, were working on this car and they offered to provide us (in the U.S.) a limited run. There are a few things we’d need to change, but we’re overwhelmed with the car. Our dealers would have the car this summer. We think this is a good proposition and the question became, why not?
TDB: How big a program will this be?
Ewanick: We’re talking a very small volume – maybe 2,000 cars. And we’re going to cherry-pick dealers, maybe 150, 200 (out of 780). We’re going to find exclusive ways to handle this customer.
TDB: Do you see growing beyond just 2,000?
Ewanick: Oh, yeah. Just from the comments of our dealers, they’re real positive. In fact, they’re more positive about this than they were about Genesis.
TDB: The car is called Equus in South Korea, but what about when it comes to the U.S.?
Ewanick: We’re still studying the name. We think Equus is tremendous and ties back to the homeland and maybe there’s another option. In some parts of the world, it’s called Centennial, but we don’t want that.
TDB: Now, you’re going into the Premium Luxury Segment, which has largely dried up during the current recession. Some would say that’s bad timing.
Ewanick: No matter what segment we go into, whether it’s Sonata or Genesis, we go in offering value. So, we’re going into the Premium Luxury segment offering a value that can’t be ignored. Now, there are the diehards who just won’t look at us. But there are enough others who will.
Hyundai intends to limit the number of accessories offered on the 2011 Equus, loading it up, but keeping this hood ornament as one option.
TDB: And there’s no question you’ve seen a huge increase in the consideration set, the number of people who will now look at a Hyundai product. I think that, a year ago, you were only at 26%, or barely one in four American motorists.
Ewanick: It’s definitely gone up. In the last nine months, it’s gone up to almost 40%, thanks to the Hyundai Assurance program. Just the tonality of the job protection program is getting people to look at us…and how they feel about Hyundai. But we have another way of looking at how people look at us, and in terms of seeing us as being as good as or better than competitors like Toyota, Honda or Ford, it’s now up seven out of 10. In terms of cars bought under the Clunkers program, we’re number four out of 10.
TDB: Who do you see as your likely customer for Equus?
Ewanick: Our (target) customers are people who like to drive themselves, rather than being chauffeured. They like the feel of the road. They may not look for ultra-performance, but they don’t want a car that’s sloppy or sluggish.
TDB: What did you learn from Genesis you’ll use when marketing Equus?
Ewanick: We feel pretty good about how our dealers are handling the Genesis customer, but we need to approach this (Equus) customer at a different level. So, we’re looking at what we need to do…to go out of the way to make this a really exclusive experience, even beyond what you’d see at Mercedes. It may be like a showroom-within-a-showroom, even a showroom or service that might come to your house. We have a lot of different plans we’re looking at in terms of how to sell and service that customer.
TDB: Let’s talk about the car itself. How does it compare to Genesis?
Ewanick: It’s about a half-foot longer. There are more similarities to Genesis than differences. We’re going to keep the same 4.6-liter Tau V-8 and the same 6-speed automatic ZF transmission. But we are going to adjust the suspension. We’re looking for something between the (Lexus) LS and (Mercedes-Benz) S-Class. Interior volume and noise levels will be equal to or better than the competition. We’ll have sound-deadening glass, for example, in all windows, including the rear windows and backlight.
TDB: Technology seems to be the calling card, these days? What else will you have there?
Ewanick: This car will have the Active Lane Changing system, and it will be the first car that will be able to tell the difference between a yellow and a white lane. It will have cameras front and rear. And it will have amenities, like leather and suede that you’d only find a car like an LS or S-Class. There’ll be Active Cruise Control. And we’re going to have AutoHold. If you’re in stop-and-go traffic, when you completely stop, you won’t have to keep your foot on the brake. But when you touch the gas, it will start going again.
TDB: I’m hearing a price tag of $60,000.
Ewanick: We haven’t decided yet, (but) in every other class Hyundai competes in, we’ve giving a significant price advantage compared to what we compete with. And, I wouldn’t see this as any different. One thing we’ll do is offer very few options. The more choices, the more expensive a car gets. So, we’re going to load it up and control the price point.
TDB: The winged hood ornament is distinctive – and very Korean. How does it fit in?
Ewanick: Our plan is to have an emblem when we bring the car into the States, but because we’ve received so many compliments – and I’m surprised, because I thought hood ornaments were going out of style – we’re going to make it a dealer-installed option.
TDB: Some folks are starting to wonder whether Hyundai is simply getting ready to walk away from the traditional segments it competed in.
Ewanick: As much time as I spend on Equus, I spend 20 times as much on Elanta, Santa Fe or Sonata. We know, end of the day, those are our core products and if we aren’t successful there, Equus won’t matter.
TDB: I’ve heard there are still other luxury cars under development for the Korean home market. Might you bring still more of them over to the States?
Ewanick: I think not in the short-run. This will be one of the last, but there are other things and (we could) as time goes on. But for now, we know what our core product is and what we need to spend time on. We don’t want (luxury) to become a distraction.
TDB: So, might you finally be getting ready to launch a separate luxury channel?
Ewanick: I’ll let you read between the lines but. (Hyundai American CEO) John Krafcik has said we haven’t ruled that out, but we haven’t decided yet, either. We have no immediate plans.
Find out more about the new 2011 Hyundai Tucson in a sneak peek on TheDetroitBureau.com!