Hyundai to Launch Genesis as Stand-Alone Premium Brand

SEOUL—Hyundai Motor Co. is planning to launch several luxury automobiles under a separate premium brand called Genesis to drive profit growth, as the Korean auto maker faces stiffer competition from cheaper Chinese cars and a push by European luxury brands into the mass market.

"We want to take another leap forward by responding to the fast-growing luxury auto market," Hyundai Vice Chairman Chung Eui-sun said at a news conference Wednesday.

Hyundai, the world's fifth-biggest auto maker by sales when combined with affiliate Kia Motors Corp., said it plans to unveil five new luxury models, including sport-utility vehicles, under the Genesis brand starting next month until 2020.

Hyundai has been selling a midsize luxury sedan under the Genesis name since 2008, but has now decided to bundle all its high-end luxury cars as a separate global brand, following in the footsteps of its Japanese rivals Toyota Motor Corp. and Nissan Motor Corp., which have independent premium brands Lexus and Infiniti, respectively.

Hyundai also said it has hired Luc Donckerwolke, a former veteran designer at Volkswagen Group, to strengthen its brand image.

Mr. Donckerwolke has worked as a designer for the Audi and Bentley brands for more than 20 years and was also head of design at the European auto group's Lamborghini and Seat brands. He is widely expected to eventually succeed Peter Schreyer as the head of design for the Hyundai, Kia and Genesis brands.

Mr. Schreyer, a German former chief designer at Audi and Volkswagen, was hired in 2006 and has been credited with giving Kia's profile a lift with innovations including the so-called tiger nose, the brand's signature radiator grille. Hyundai promoted him to design chief at both Hyundai and Kia in early 2013.

The latest decisions are part of Hyundai's drive to boost profit through premium vehicles. The company's earnings have been hurt by slowing sales growth for its smaller cars, which sell at higher volumes but generate lower profit margins than luxury vehicles.

Hyundai posted its seventh straight quarterly profit decline in the July-September period on weak sales, particularly in China and emerging markets.

Write to In-Soo Nam at In-Soo.Nam@wsj.com

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(END) Dow Jones Newswires

November 04, 2015 00:15 ET (05:15 GMT)

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