Hyundai Motor not planning separate premium brand

Tuesday, 10 January 2012 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Hyundai Motor’s vice chairman said the South Korean automaker had no immediate plans to launch a separate premium brand in a bid to bolster its brand image, brushing off speculation that such a move was on the cards.

The South Korean automaker does not plan to rival the likes of Toyota’s Lexus “for the time being,” Kim Yong-hwan told Reuters last week. Another Hyundai Motor executive told Reuters earlier that the company considered launching a separate premium brand, but decided not to do so because of the high costs, including those related to new dealerships. Hyundai and affiliate Kia Motors, which together rank fifth in global car sales, have been outperformers especially during the global financial crisis.

Hyundai has tried to transform its image as a maker of value-for-money vehicles into one that evokes “new premium” at affordable prices, under the slogan “New Thinking. New Possibilities.” Hyundai said last month that it hired former BMW designer Christopher Chapman as chief designer of its U.S. design center, saying he will be responsible for new vehicle and concept design for Hyundai. “(The recruitment) has nothing to do with a separate premium brand,” Kim told Reuters.

Hyundai’s sibling Kia Motors enjoyed huge sales growth and brand enhancement, driven by the design improvements led by former Audi/Volkswagen designer Peter Shreyer. Kim also said the automaker had no plan to build a new auto manufacturing plant in the United States. Speculation has been rampant that the automaker may build its second U.S. plant because of its stretched production capacity.

Hyundai and Kia were among the biggest gainers in the United States in 2011, posting sales rises of 20 percent and 36 percent, respectively.