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Why Kia doesn't need a premium brand

Hyundai's creation of the Genesis luxury brand means it and fellow Korean brand Kia have finally hit the mainstream in the U.S. – as far as products are concerned – after nearly three decades of trying. Which is about as long as it took Toyota and Nissan to roll out Lexus and Infiniti, respectively. It's history repeating itself. Genesis is supposed to be the way Hyundai's premium models get the respect they deserve, without carrying the baggage of a name associated with frugality. Hyundai has, in fact, built up a reputation over the last decade or so for cars that compete head-on with class leaders, rather than aim to be 90 percent as good for 75 percent of the price. And because Kia shares a number of components with Hyundai, its vehicles have also steadily become not only better mainstream vehicles, but have continued to aim higher than their price points. Does Kia need to follow now in its parent's steps with a prestige brand to market its most expensive models? I'm aware of the Kia K900, the company's deepest foray into luxury territory notably occupied by Lexus. Kia, however, has consistently been pushing this $60,000 full-size luxury sedan along with $0 down, low monthly payment lease deals. Turns out there really aren't many people looking for a full-size Kia luxury sedan. Or maybe they're just waiting to get it for $20,000 in a couple of years. Consider the K900 and Genesis when I convince you Kia already makes upscale cars to rival those with premium badges. They just don't happen to be its most expensive model. Shortly after Hyundai's announcement it would spin its luxury models off into the Genesis brand, I spent a few days with a 2016 Kia Sorento SXL. And I'm willing to call it a more convincing attempt to get people out of luxury cars than the K900. Driving the Sorento is not an emotional experience. You feel parental driving it, thinking you might've forgotten to pick your kids up until you remember you don't actually have kids. But after settling into the nicely stitched and perforated leather seats, you respect its comfort, quiet and amenities. The headliner is soft, the stitching on the dash top is convincingly real and everyone is impressed by the sharp graphics on the touchscreen and the slick powered shade that reveals an expansive glass roof. A Kia Sorento costing more than $46,000 sounds absurd until you wonder how much better an Acura MDX or Lexus RX350 is when those cost as much as $10,000 more.

Weekly Recap: Hyundai spins off Genesis as new luxury division

Hyundai is creating a standalone luxury division that will use the Genesis name in an ambitious move that could bring the Korean automaker more profits, sales, and prestige. The Genesis division launches in December in Korea, followed by a rollout in other markets, including the United States in 2016. The brand will have six models by 2020. They will all start with a "G" for Genesis, then have a number, like 70, 80, or 90 to represent their segment, Hyundai said. The vehicles will also get more upscale design to differentiate them from other Hyundais. Luc Donckerwolke, a veteran Volkswagen Group designer who joined Hyundai earlier this year, will oversee a new Prestige Design unit at the company. The current winged Genesis emblem will be restyled and worn by all of the brand's luxury vehicles. Hyundai says its new division will focus on technology, customer service, and will have "refined performance character." The current Genesis sedan offers a 5.0-liter V8 that makes 420 horsepower. Naturally, Hyundai is optimistic for its new Genesis brand, but it will face immediate challenges as it enters a crowded and competitive market with a long list of entrenched competitors. Brands with storied histories like Cadillac and Lincoln have struggled recently, and even top-selling brands Mercedes-Benz, BMW, and Lexus aren't immune to potential troubles. Rumors have persisted that Hyundai harbored luxury ambitions since it first launched the Genesis sedan in 2008. OTHER NEWS & NOTES SEMA shows aftermarket's strength Further evidence of the auto industry's momentum was on display at the SEMA show this week as carmakers and tuners again turned out in full force. The Ford Cobra Jet Mustang, a Chevy Silverado customized by Kid Rock, and a Kia Forte Koup Mud Bogger were among the prominent displays. The show attracts more than 140,000 people per year, including 2,400 exhibitors, who come to buy and sell products. SEMA is a barometer for customization trends in the aftermarket, a key reason automakers attend. "They represent things we are thinking about and want to get some exposure," Mopar boss Pietro Gorlier said. Honda previews next-gen Ridgeline In other SEMA news, Honda previewed the next generation of its Ridgeline pickup at the show with a race-prepped vehicle that will compete in the Score Baja 1000 this year. The hood, side profile, roof, and front fascia offer hints of what the new truck will look like in production trim. Art St.

Hyundai admits 'error' in KDM Sonata fuel economy announcement

Stop us if you've heard this one before: Hyundai is going to have to reduce the officially announced miles-per-gallon number for its 2014 Sonata. While there's a lot of similarity between this new situation and events that transpired in 2012, there are some important differences. For one, the new mileage mistake, which Hyundai says was once again caused by an error at its test centers, is only applicable to cars in the Korean Domestic Market. Secondly, it's not so much mpg as kilometers per liter. "We are very sorry for causing confusion to reporters" - Hyundai According to Reuters, the numbers for the Korean Sonata were originally announced as 12.6 kilometers per liter (29.63 mpg), a six-percent increase over the previous model. The automaker has just announced that government verification showed an actual result of 12.1 kpl (28.46 mpg), which is only a two-percent increase. Since these numbers were done using the South Korean economy test, they are not equivalent to the US EPA numbers, the latter of which say the 2014 Sonata gets 36/40/38 miles per gallon. The correction came before the new Sonata went on sale in South Korea. In an official statement, Hyundai said, "We are very sorry for causing confusion to reporters." Hyundai Motor America's Jim Trainor, product public relations senior group manager, assured AutoblogGreen that the Korean error will have "no effect" on US ratings. In 2012, Hyundai and Kia faced a media and consumer firestorm after being caught up in exaggerated mileage claims for vehicles like its 2013 Accent, Veloster and Elantra. The sister companies agreed to compensate buyers to the tune of $395 million for what they said were "honest mistakes" and "human error" during in-house fuel economy tests. There is no word yet on whether similar customer satisfaction actions will follow this domestic market snafu.