Hyundai takes luxury route with its Genesis

Hyundai Motor Co. launched its rear-wheel drive Genesis luxury sedan Tuesday, a car the South Korean company sees as its ticket into the ranks of the world’s top-end automakers.

Hyundai preceded the introduction by showing a promotion film featuring a decidedly James Bond-like actor driving the sleek, road-hugging vehicle. The screen then receded to reveal an orchestra and three South Korean tenors who gave a live performance of “Nessun dorma,” an aria from Puccini’s opera “Turandot.”

Hyundai Motor said it had invested 500 billion won ($533 million) to develop the Genesis over the last four years, and sees it as a competitor to luxury models such as Daimler’s Mercedes-Benz E-Class, BMW’s 5-Series and Toyota Motor Corp.’s Lexus GS.

The car “symbolizes our determination to enter the highly competitive arena of luxury cars now dominated by the Europeans,” Hyundai Chief Executive Chung Mong-koo said. “Genesis will consolidate our position as the leader of the Korean auto industry and will pave the way forward for our leap into the global market.”

Hyundai said it aimed to sell 55,000 of the vehicles this year, 35,000 at home and 20,000 in North America, China and the Middle East. It is targeting Genesis sales of 80,000 in 2009, with 45,000 of that total in foreign markets.

Hyundai plans to begin U.S. sales in June and in China in August, said company spokesman Jake Jang, who added that commercials for the car would begin running in the U.S. around May.

Stephen Ahn, an auto industry analyst at Woori Investment & Securities Co., said Hyundai was treading the path of Japanese automakers such as Toyota, Nissan Motor Co. and Honda Motor Co. that launched luxury cars to transcend earlier reputations as solid makers of quality vehicles.

“I think Genesis could be the next catalyst for brand-value growth” for Hyundai, said Ahn, who predicted the company would sell about 50,000 of the vehicles this year, slightly short of Hyundai’s stated goal.

The Genesis, which comes in 3.3-liter and 3.8-liter engines with a 4.6-liter version also expected this year, is Hyundai’s first rear-wheel drive vehicle.

Depending on engine size and other options, the most expensive Genesis in the U.S. would cost less than $40,000, Hyundai spokesman Oles Gadacz said.