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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.

Hyundai reportedly eyeing a takeover of FCA

The CEO of Hyundai Motor Group plans to launch a takeover bid for Fiat Chrysler ahead of the planned retirement of FCA Chief Executive Sergio Marchionne next spring, Asia Times reports, citing unnamed sources close the situation. CEO Chung Mong-koo will wait for an expected decline in the Italian-American automaker's shares to make his move. Hyundai isn't commenting on the rumors, unsurprisingly, but would presumably stand to benefit by gaining Chrysler's dealer network and the lucrative Jeep brand and probably Ram, too. An FCA spokeswoman in Auburn Hills told Autoblog the company had no comment. But like any story about a possible takeover, this one gets complicated with inside players — and President Trump's posturing on international trade issues. FCA has been the subject of takeover interest before, including by Hyundai, but Marchionne has denied a merger was likely, instead saying his company was in talks with the Korean automaker about a technical partnership. In 2015, Marchionne lobbied General Motors hard, but unsuccessfully, for a tie-up; he was also spurned by Volkswagen. Marchionne had repeatedly stressed the need for car companies to merge to decrease overcapacity and better afford the massive investments needed for things like autonomous and electric vehicles. In the case of Hyundai's reported interest, there is a cast of characters. One is Paul Singer, principal of the hedge fund Elliott Management, an activist shareholder with a $1 billion stake in Hyundai and a major owner of equities in Fiat's home turf of Italy. Then there is FCA Chairman John Elkann, who reportedly disagrees with Marchionne on a successor as CEO of Fiat Chrysler but has little interest in running the company himself and would prefer a merger. Compounding things is what the Trump administration would think of a further blending of Fiat Chrysler's international DNA, though a deal with a Korean automaker is thought to be more palatable to the president and members of Congress than by a Chinese conglomerate like Great Wall Motor, which has confirmed its interest in taking over all or parts of FCA. The full Asia Times piece is here. Related Video: News Source: Asia TimesImage Credit: REUTERS/Rebecca Cook Chrysler Fiat Hyundai Jeep RAM Sergio Marchionne FCA merger takeover

Hyundai returns to flashier design with 2018 Sonata

Compared to the stylistic achievement of the 2009 Hyundai Sonata, many observers viewed the redesigned 2015 Sonata as a step backward. To right the ship, Hyundai tasked its North American Design Center with restoring some razzle-dazzle to the brand's midsize contender for 2018. The creative team made changes throughout, the biggest development being the "cascading grille" at the front, cribbed from the Elantra. The Sonata Sport 2.0T grille gets a silver mesh treatment and vertical LED DRLs tucked in the triangular bumper vents at the corners. The other models wear chrome bars inside the grille, with vertical and horizontal LED DRLs at the corners. Slimmer headlights stretch around the front edges, with the hood sporting deeper chiseled surfaces to emphasize the injection of style. In back, instead of the hint of a spoiler on the current sedan, the 2018 Sonata's deck lid ends in a pronounced flick above a sharp taper into the rear valance. The license-plate holder moves down to the reshaped bumper so that the larger, flatter trunk face can fit much larger badging. The trunk release button hides inside the Flying H emblem, and wedge-shaped taillights glow with the same alien-script pattern familiar from the Elantra. Down below, non-Sport models get a single, trapezoidal exhaust tip, but the Sport 2.0T gets two such exhaust tips, paired with new Michelin tires and a flat-bottomed steering wheel. Engines don't change, but buyers who choose the 2.0-liter four-cylinder get an eight-speed automatic transmission that adds a cog at the low end and another at the high end. The rest of the lineup sticks with the present six-speed auto. Handling upgrades include 12-percent thicker torsion bars in the steering system and new steering calibration for better on-center feel and responsiveness, plus 21-percent thicker trailing arms and new bushings in the suspension for faster response and more compliance. Inside, a reworked center console holds steady with a seven-inch touchscreen. Interior designers gave the new HVAC and audio controls a silkier finish and contrasting "piano key" buttons. A second-row USB port serves back-seaters, and the options list will include a Qi wireless charging pad for those in front. The 2018 Sonata introduces a navigation bird's-eye view, free traffic data, standard blind-spot detection and rear cross-traffic alert, and a new lane departure warning system as some of the convenience and safety highlights.