Save 20% on Hyundai Genesis: Ship It Back From America
by Brendon Carr
On Wednesday I had a long-standing client and friend come into town for a meeting, and we met up at the Hyatt Hotel for sodas in the lobby before he had to shuffle off to the airport. Before meeting my friend, I noticed that Hyundai Motor was holding a US dealership conference in the bowels of the hotel.
Perhaps you’ve heard of this new Hyundai “luxury” car they’re calling Genesis—the one that’s just as smashed-up in a head-on collision as an Audi A8. I’ve had occasion to crawl around one at my local Hyundai dealership, and it seems to be a very “Korean” sedan aimed at the kind of guy who always rides in the back seat, or at least prefers to think of himself that way. And I say “he” because this car has almost zero chick appeal: Genesis is definitely a car aimed squarely at members of the Lucky Penis Club.
Personally, I think Hyundai Motor America is going to have a hard time moving the Genesis, especially while gas is five bucks a gallon because while its styling has a high ajeosshi quotient, the car is not all that fuel-efficient either.
But there’s good news: The unsold inventory of Genesis won’t pile up in America, because these cars will be reimported to Korea. It seems that the Genesis 3.8L V6 model which sells for the knock-down price of W52,800,000 here in Korea (US$54,090) will be sold for only US$32,000 (plus tax and registration) to American consumers. A parallel importer has done the math and found that even with Korea’s punitive car-import duties and engine-displacement taxes, he can roll them back onto the car-carrier and sell Genesis here for W10,000,000 less than Hyundai has set the Korean price.
Together with its Kia subsidiary, Hyundai has a 70% share of the local market and a habit of pricing its cars much higher in Korea than in the United States. But hey—look at it this way: The price difference is only in the 20% range? Things are looking up! It sure is great to be a Korean consumer.
With those kind of fat margins to extort from Hyundai, it’s no wonder the Hyundai Motor labor union desperately opposes open markets and the Korea-US Free Trade Agreement.
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Brendan,
I bought an Infiniti G35 from Hanmi Motors last year. Apparently I was their first foreign buyer. It was a disappointing experience. From a legal or perhaps cultural standpoint would you have some insight into why they sell the cars they way they do?
Let me explain, and I hate to make the stateside/Korean comparison, but I think it applies. All Infiniti cars are built according to customer orders and then shipped. If the dealer has your car, great, if not, you’ll have to wait while they go through the process. Infiniti in the states has to order their cars from Japan just like Korea does. There are some differences from the Korean spec and American spec, I don’t know why, but they’re there. Why is it when you go to a dealer here, they offer package A or package B? Why aren’t there any options? Why can’t I get the sunroof and heated seats, but not the 10-way seat control? In the states you can get it any way you want it, you’re paying for it. They just put the options in the computer. The computer sends a message to the boys in Japan, they punch it into the assembly line and voila, customized car.
The limitations, are something I don’t understand because it is a money maker. Maybe some people don’t understand all of the options, but that’s what the dealer is supposed to explain. I came with a encyclopedic knowledge of the car and its options and they kept telling me no. Also, I think this is an interesting cultural difference in some guys, they don’t know about their own car. I asked a friend how big was his engine, could he tell me the difference between his model car and last years or the L model from the XG model. The most he could say was that his car was the most expensive of that model. I could tell you things about the 2007 G35 that would impress any dude.
From this experience I would recommend to anyone buying a car in Korea to make sure you’re fully satisfied. I tried to save money by not importing the car and I bought a car I am not satisfied with. In any case, I will sell the car next year and import an new Infiniti, with all the bells and whistles that I chose, from the states.
No idea on that one. Sorry. Maybe someone from the dealer or from Nissan Korea might want to offer you some explanation, but I don’t know what drives those decisions. Probably it’s just a matter of market preference.