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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.

All-electric Jaguar XJ coming soon on platform shared with 'Road Rover'

We've been posting on the likelihood of electric Jaguars for a while now, especially the XJ leading the charge as a new EV flagship. Rumors at the beginning of 2018 predicted an XJ EV on our doorstep by the end of 2018, the 50th anniversary year of the XJ. By April this year, it was looking like the battery-powered XJ would use the I-Pace platform and make an appearance sometime in 2019. Now, Automotive News Europe reports that during Jaguar Land Rover's Investor's Day presentations, the automaker said it would debut a "large SUV and a large premium sedan" on its Modular Longitudinal Architecture (MLA) suitable for EVs, hybrids and traditional ICE-powered cars. The sedan in question is the next-gen XJ. Nick Rogers, JLR's product engineering boss, said electric MLA vehicles will get 90.2-kWh batteries that return range of up to 400 kilometers (292 miles) on the European cycle. That would effectively be the same size battery as the I-Pace, which rides on its own one-off platform, and the same range; in the U.S., the I-Pace is rated at 234 miles. It's said the XJ's design, produced by former Jaguar design chief Ian Callum and his team, has already been cleared. It swaps the four-door body for a five-door, a la the Audi A7, and introduces a new design language for the car and the carmaker. Car and Driver says the new statement sedan aims to be "a cutting-edge alternative to the BMW 7 Series and Mercedes-Benz S-Class," and Autocar saying it will "remain Jaguar's flagship in preference to a large SUV, such as the rumored J-Pace." The point of introducing the EV first is to establish the car's technology and sporting credentials — hopefully before the Porsche Taycan and Audi E-Tron GT arrive. Eventually, an ICE version of the XJ powered by an Ingenium inline-six should come; that will welcome buyers not ready to make the all-EV switch, a necessary move in keeping with the XJ's competition for global sales with the S-Class and 7 Series. However, leaving room in the design for a conventional drivetrain will force compromises that the all-electric competition doesn't face. Production of the current XJ ends at the Castle Bromwich facility on July 5. The new sedan is slated to be "announced in the near future" and built at JLR's plant in Solihull, which assembles Land Rover products. The same MLA platform will support a road-focused Land Rover as a sibling to the XJ, dubbed the "Road Rover" internally.

Could Jaguar become an EV-only brand?

Just yesterday we wrote about the Heisenbergian uncertainty surrounding the future of the Jaguar F-Type. A new report in Autocar prompts us to consider extending that ambiguity to the entire Jaguar brand. The UK magazine reports the automaker's product planners have devised a ten-year plan to switch to a pure EV lineup of cars and crossovers. According to Autocar's sources this is a planning exercise and doesn't have the green light, but it's "fairly advanced" and has adherents inside the company. The first shot fired would be an all-electric XJ replacement. That sedan, a "no-holds-barred luxury car" to challenge the Tesla Model S and Porsche Taycan, would provide emissions-free motoring before the Mercedes-Benz S-Class and BMW 7 Series come with their EV propositions. Around 2023, an EV crossover a touch larger than the full-sized Audi E-tron would replace both the XF and XE sedans. Two years later, a new mid-sized I-Pace would debut as both the F-Pace and E-Pace fade out. And two years after that, around 2027, the J-Pace luxury crossover would sigh its last ICE gasp. And what about the F-Type? The report says "with no replacement for F-Type in the works," an electric sports car "is also a possibility." There's no mention of the XK revival. Right now, Jaguar sells seven models - four sedans and three crossovers. As the Autocar article's written, come 2027 Jaguar would have an electric XJ sedan, a full-sized EV crossover, the I-Pace, and perhaps an electric sports car. That's a brave new world - one we're not sure Jaguar dealers could survive in. Problem is that Jaguar and its dealers are having plenty of problems now. Chinese-market volatility, the cloud around diesels, and Brexit uncertainty have contributed to a sales slump so dire that Jaguar's Castle Bromwich plant is going to a three-day week for the rest of the year. The sales flu has spread to Land Rover, too, the brand's Solihull plant closing for two weeks to realign dealer inventory. Considering all that, and with no easy relief in sight, the product planners are apparently debating whether a new, traditional three-model sedan range is worth the investment. The upside of going all-electric is said to be higher sales, with internal estimates supposing 300,000 units annually. Last year Jaguar sold 178,500 units. The marque could rake in larger profit margins on those sales, too, thanks to premium buyers being ready to shell out big ducats for EVs.