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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.

Man trapped in Cadillac XLR for 14 hours after battery dies

A 75-year old Cleveland man ended up trapped in his 2006 Cadillac XLR for 14 hours last month, according to a story reported by the Detroit Free Press. The owner of the car, Peter Pyros, hopped into his roadster to back out onto his driveway, but he quickly learned that the battery was dead. He was "trapped" because the doors use an electric button to activate the door latch to open the door. Since the battery was dead, the buttons did nothing. Now, GM planned for an eventuality like this by placing a manual door release handle on the ground next to the seat. It's marked with a red diagram of the driver-side door opening. There's also a section about it in the owner's manual. The only problem here, was that Pyros says he didn't know the release was there, and he didn't have his owner's manual in the car. Because of this, Pyros may not have made it out alive if not for a neighbor coming to his rescue. "I came to the conclusion that I was going to die ... I was at peace with it. I asked God to help me twice, then I said, 'OK, God if this is the way I'm supposed to die, I will die,'" Pyros said to reporters. There's every chance he could have died in the car, too. Temperatures in Cleveland hit 77 degrees the day he was in the car, and he said it was unbearably hot and difficult to breathe after only 30 minutes sealed inside. Pyros reportedly tried yelling, pounding on and even trying to break the car's windows without success. At one point, Pyros wrote a note to his nephew explaining what happened if he ended up dying. What eventually saved him was a curious neighbor who came to investigate after he noticed his garage door was still open late at night. His neighbor called the police after he found him in the car, and emergency personnel actually ended up charging his car's battery up enough to get the electric door release to work. Of course, after everything settled down, there are now lawyers involved. They're going after GM, with an argument accusing the automaker of not making the emergency latch more obvious both in the car and in the owner's manual. GM doesn't appear to be having any of it. Here's its statement on the matter: "Because this varies by make and model, drivers should review the door lock section of their owner's manual, and follow up with their dealer or customer assistance center if they have any questions," GM spokesman Tom Wilkinson wrote to the Free Press. This type of door release isn't particularly uncommon for GM vehicles.

GM says EVs are the future — but trucks are going to take it there

In the PowerPoint deck for the General Motors Capital Markets Day presentation, one of the more disturbing things comes early on, during GM President Mark Reuss' initial remarks, in an area where he is discussing the company's overall strength in trucks. The point being made is that GM has a truck for all and sundry. And there it is, a phrase on a slide that should send chills up the spines of those who still pine for the old Bob Seger "Like a Rock" Silverado ads: "Little bit country. Little bit rock 'n' roll." That's right. Donny and Marie. Somehow the Denis Leary snark in the F-150 ads is all the more appealing. The Capital Markets Day presentation was chock full of observations about electrification and automation (Reuss and CEO Mary Barra both noted that the corporation's vision is one of "Zero Crashes. Zero Emissions. Zero Congestion." Dan Ammann talked about the progress being made at Cruise Automation; Reuss rolled out the plan for an array of electrified vehicles, with a luxury EV and a compact SUV being the "Centroid Entries" for the modular bases of many others). But it is worth noting that there is no getting away from the power of pickups in the U.S. market, as that was the central topic in Chief Financial Officer Dhivya Suryadevara's comments, with "Truck Franchise" being flanked by "Key Financial Priorities" and "Financial Outlook." Clearly, to gloss the old phrase, the truck segment is where the money is. Suryadevra enumerated how the truck segment is significantly different than other types of light vehicles. Among her points: GM, Ford and FCA have more than 90% of market share. The truck parc has been growing and aging over the past 10 years. Customers are fiercely loyal to the segment—as in 70% of truck buyers are truck buyers. A good number of the vehicles are for commercial use (40 percent). Trucks are "less prone to. . .mobility disruption." Trucks offer high margins. Translaton: The segment is one that they're solidly positioned in. There are lots of old trucks on the road that will need to be replaced by new ones. Perhaps buyers may switch from a Sierra to a Canyon, but it will be a truck. If your livelihood depends on that type of vehicle, even if gas prices go up or the economy begins to go south, you're going to stick with it. Most of the country isn't San Francisco, so trucks will continue to be essential. And, well, they're profitable in the extreme.