Automotive News - January 4, 2016 - Supplement - 5S

JANUARY 4, 2016 * 5S

Volvo has described the
S90 as its "entry ticket to
the premium sedan club."

DETROIT

deluxe
Gabe Nelson

gnelson@crain.com

istory tends to repeat itself.
Twenty-seven years ago at
the Detroit auto show, Nissan Motor Co. unveiled the
Infiniti Q45 and Toyota
Motor Corp. revealed the Lexus LS 400,
signaling that Japan's debutante luxury
brands belonged at the ball.
Next week, Hyundai Motor Co. and Volvo Car Corp. will introduce posh sedans
as standard-bearers for multibillion-dollar investments in luxury cars.
Hyundai will show the G90 full-size sedan
as the flagship of a Genesis luxury brand
that will offer three sedans, two light trucks
and a coupe by 2020. Volvo, amid an $11
billion revival plan under Chinese ownership, will unveil an S90 sedan that the company has described as its "entry ticket to the
premium sedan club."
The club is bursting with applicants.
Luxury vehicles account for roughly one
in nine of the global industry's light-vehicle sales but 40 percent of its profits, making them irresistible to large mass-market
automakers.
"It's only natural," Hans-Werner Kaas, a
Detroit-based director at consulting firm
McKinsey, said in an interview. "Automotive luxury, just by the sheer size of the relative profit pool, attracts lots of new players."
The clear benchmark for Hyundai and
Volvo is Lexus, which has grown into a
genuine rival to BMW and Mercedes-

Nouveau riche collides with old money at Cobo

Hyundai expects the G90,
known as the EQ900 in
Korea, to be the flagship of
the Genesis luxury brand.

Benz. These three brands run neck and
neck in U.S. sales, and together, they account for half of America's luxury-car
market, which totaled 1.9 million vehicles
in 2014.
Next week in Detroit, BMW plans to unveil the high-powered M2 coupe, while
Mercedes plans to introduce its
next-generation E-class
sedan and a freshened version of
the SLK roadster,
Lincoln is
expected to
follow up on
its Continental
concept, left.

which will be renamed the SLC for the 2017
model year.
Lexus will unveil the LC, an eye-catching coupe aimed at the Mercedes SL and
the BMW 6 series that reflects Toyota
President Akio Toyoda's campaign for
racier cars. Based on the LF-LC concept
unveiled in Detroit in 2012, the rearwheel-drive LC is expected to be offered
with a 5.0-liter V-8 engine or a high-powered hybrid powertrain.

Swedish at heart
Hyundai and Volvo represent an influx of
Chinese and Korean capital into the industry, yet national origin has declined in importance as automakers now design, build
and sell cars and light trucks globally.
Ford, which is expected to show the pro-

duction version of its revived Continental
in Detroit, designed the spacious sedan to
appeal to Chinese customers.
Hyundai has lured top executives from
Audi, BMW and Bentley to lead its upscale
push. Designers from California crafted
Genesis' signature look. Engineers tuned
the G90 at Germany's Nurburgring racing
circuit, where Hyundai opened an r&d
center in 2013 to give its cars the refined
manners that luxury buyers demand.
"We are reaching the level where we can
offer these kinds of
cars," Peter Schreyer,
president and design
chief of Hyundai Motor Group, said in a
November interview.
"Maybe five or 10 years
ago it would not have
been possible."
Volvo, bought by Schreyer: RearHangzhou,
China- wheel drive sets
based Zhejiang Geely Genesis apart.
Holding Group in 2010,
became the first company to sell a Chinese-made car in the U.S. by launching the
long-wheelbase S60 Inscription sedan in
2015. Meanwhile, the company is spending $500 million on a factory in Charleston,
S.C., for easier access to the U.S.
Volvo has tried to remain Swedish at
heart by housing its core engineering and
management operations at its historic
home in Gothenburg - as well as by
sewing miniature Swedish flags onto the
seats of its newest models.
"Safety is still important to them, design
is still important to them, and they're still
playing up their Swedish heritage," said
Stephanie Brinley, Detroit-based senior
analyst at IHS Automotive. "What Geely
appears to have done is allow Volvo
enough space to carve out a space for
themselves."
Heritage and history matter.
So even with sedans that compare fasee DELUXE, Page 40S

Table of Contents for the Digital Edition of Automotive News - January 4, 2016 - Supplement

Nouveau riche collides with old money at Cobo
Cadillac's edgy exterior styling evolves
Design boss Wagener maps out M-B's turnaround
Chevrolet, Toyota raise game in green battle
FCA designer Gilles: People should order their cars
A new minivan and a few sedans
Challenging tasks ahead
Ain't no mountain high enough
Big car launches pose test
Betting on NSX glory
Crossovers are crucial
Flying fashionably under the radar
Bigger, more luxurious
Heating up in '16
Hitch revival on a crossover
Fresh sheet metal ends product drought
New variants coming
Trucking along amid redesigns, cheap fuel
Striving for the luxury crown, again
The good times just keep rolling
Treading water with a stylish life jacket
Onward to luxury cars
Performance overtakes lost volume
Banking on a first: An ultraluxury crossover
Bargain brand no more
Turbos, high-end luxury in the mix
A few big launches in '16, then a lull
Rebooting with an SUV
Waiting for more trucks
Charging up the cheaper EV
Content, volume, profit focus
Major launches on deck
A major truck launch holds the key
Keep the momentum going and win back share
New global boss for growing automaker
Building on Continental buzz
Crucial launches are on the horizon
Ready to fly solo
Crossovers keep sales surge rolling
Finally, some fresh products
Riding the light-truck wave
A new Dawn, crossover
Banking on new models
Key launch year ahead
Selling style and story, but not cars
Waiting for an SUV
Former Detroit stars (and where they are now)

Automotive News - January 4, 2016 - Supplement