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Genesis cars win accolades, offer value — so why are sales so bad?

My high-school buddy Brent Cormier was so smitten with the Genesis G80 when he saw it at an event I hosted at SXSW in 2016 he bought a used 2013 Hyundai Genesis a short time later and fell in love with the car. "It surpasses my every expectation," said Cormier, a self-described "renaissance man" who owns and runs a real estate agency with his wife Laura, is a food service executive chef and part owner of Austin-based Thin the Herd Guitars. "I was locked into Mercedes and Audi for 10 years," he added. "And felt trapped in an endless pit of maintenance costs." After owning the Genesis over the past two years — including using it as an Uber and Lyft driver to earn extra cash — Cormier learned what some frugal luxury sedan buyers and a handful of car reviewers have discovered: Genesis offers great bang for the buck compared to other premium brands and can compete with the best in terms of performance, features and comfort. Hyundai's luxury brand also earned a prominent third-party endorsement last week when for the first time Genesis topped J.D. Power's 2018 APEAL study, surpassing German luxury-performance icon Porsche. The APEAL study (which stands for Automotive Performance, Execution and Layout) "measures owners' emotional attachment and level of excitement across 77 attributes," ranging from performance to comfort, and asks nearly 68,000 owners of new 2018 models to score vehicles on a 1,000-point scale. In its second year ranked as a stand-alone brand, Genesis earned an APEAL score that bumped it up 15 points to 884 and helped push it past Porsche — and past BMW, Lincoln, Mercedes-Benz, Audi, Volvo, Cadillac, Land Rover and Lexus, in order of ranking. Last month, Genesis also topped J.D. Power's Initial Quality Survey (IQS) for the first time this year. And both its models were awarded Top Safety Pick Plus ratings by the Insurance Institute for Highway Safety, among 11 Plus ratings in all for Korean vehicles. Despite high J.D. Power rankings and great reviews, Genesis U.S. sales were off 50 percent for the first six months of 2018 compared to 2017, and in June Genesis sold only 796 vehicles — the first time U.S. numbers dropped below 1,000 in a month. Part of Genesis's APEAL and IQS success can be attributed to its small product lineup: just two models, the G80 and G90 sedans, with a third, the 2019 G70, launching later this year. And while those numbers may help in J.D.

New Cadillac ELR ad more educational, less controversial than 'Poolside'

Cadillac's first TV commercial for its ELR plug-in hybrid, Poolside, was a smash hit, in that a lot of people saw and talked about it. The 60-second spot didn't say the car was a plug-in, took potshots at the work ethic of all non-Americans and has raked in over a million views on YouTube (you can add one more here). Caddy's new ELR video will get a lot less media attention, but that's exactly the point. Cadillac claims it was happy with the way actor Neil McDonough strutted his way into the controversial ELR discussion. This time around, though, the coupe gets promoted in a more traditional way: with information about the car and what it can do - you know, drive on electricity, capture braking energy into the battery, go further on gas power when needed, those kinds of things – courtesy of GM's executive chief engineer for electrified vehicles, Pam Fletcher. The tone of the video has not been changed because of the Poolside controversy. David Caldwell, manager of Cadillac communications, tells AutoblogGreen that the new video is not destined for TV and is completely different because it's meant for a different audience. "It doesn't have any direct relation to Poolside," he says. "TV advertising is not necessarily the heart of marketing something like the ELR. Notwithstanding the fact that we had a very thought-provoking ad [laughs]." "We definitely have a need to communicate what the ELR is" - Cadillac's David Caldwell The way you reach out to people via the web is different than the mass-media techniques used in spots like Poolside during big TV events (it aired during the Winter Olympics). The two video spots are different because you need to offer different information in different ways, for example having an ELR website as well as an iPad filled with ELR information at the dealership. For Cadillac, TV is "not going to be the predominant methodology," used to sell the ELR, Caldwell said, "the web is closer to what you need to do to reach people. We definitely have a need to communicate what the ELR is. It's not television advertising at all." Caldwell said a handful of other short videos similar to the new one will go live in the near future, showcasing design and powertrain aspects of the car. Keep an eye out for them – just don't look for them on TV. You can watch the new video below.

Cadillac: The standard of what?

Cadillac's tagline "Standard of the World" goes back to 1908 when it won the Dewar Trophy. While you might think that the moniker and the trophy have something to do with a feat of racing and daring-do against a cadre of British, French, and German marques, it's nothing of the sort. Rather, Cadillac achieved the trophy because of interchangeable parts. The parts they were producing back then were so well-made that Henry Leland, who established Cadillac, was able to disassemble three Model Ks, mix up the parts, and then put together three functioning cars. This amazed the Brits who handed him the trophy, and the "Standard of the World" was born. During the past several months, Cadillac has been producing news releases that would seem as though the company is the Standard of the World: "Cadillac Global Sales Rise 44.2 percent in January ... 18 percent in February ... 22.1 percent in March. . .40.9 percent in April ... 33.8 percent in May ... 7.2 percent in June." Like the Dewar Trophy being about manufacturing not performance, things are not necessarily what they seem. That is, Cadillac's growth is predicated on performance in China, not in the US. Through June, its China sales are 80,357 vehicles for the first five months of 2017, versus 72,073 in the US. The China number is a 75.4-percent year-over-year increase while the US number is a 1.6-percent decrease. For the entire globe, Cadillac has sold 164,174 vehicles. Of them, 65,250 were the XT5. That was followed by the ATS, at 34,277 units. In the US, the XT5 is doing reasonably well, as it has moved 29,798 units during the first six months. The ATS, conversely, is doing not particularly well, as it is down 26.2 percent with sales at just 7,209 for the year so far. To put that into some sort of context, know that Cadillac has sold 7,370 copies of the generally derided XTS, which is down 24.7 percent. The CTS is down 36 percent at 5,059 units, and the only other car in the lineup (we'll pretend that the ELR doesn't exist anymore and it shortly won't), the CT6 sedan, is up 172.7 percent – but they have sold only 5,397 CT6s. While Caddy talks a good game about competing with the likes of the BMW 5 Series and the Mercedes E-Class, know that those two sedans have been sold 17,036 and 20,783 times this year in the US respectively. So what is Cadillac chief Johan de Nysschen to do? According to Reuters, it is to cull the lineup.