There was a time when South Korean carmaker Hyundai was considered absurdly precocious in challenging Toyota in the U.S. That was more than 3 million sales ago.

Now, they’re taking on Lexus.

The world’s fifth-largest automaker, Hyundai — yes, Hyundai — sees its first rear-drive luxury car, the Genesis, as a worthy rival to the Lexus ES 350. And no one’s laughing.

There’s no laughter at BMW or Mercedes-Benz, either, when Hyundai compares the Genesis with the 5-Series and E-Class, respectively. And at much lower cost.

Hyundai began selling the Genesis in July with a 3.8-liter, 290 horsepower V-6 bearing a price tag of $33,000, which is $340 less than BMW commands for the compact 328i and only $200 higher than the average price of a new car in the U.S. this year.

Now comes the 4.6-liter V-8 with 368 horses that propel the rear-drive sedan from zero to 60 mph in 5.7 seconds.

With a base price of $38,000, the V-8 is expected to secure a place for Hyundai on the wish lists of people shopping the Lexus ES 350, Chrysler 300C, Pontiac G8 and the Cadillac CTS, among others.

“We’re aware there’s a segment out there that won’t consider a luxury vehicle unless it has a V-8,” said Michael Deitz, manager of product development for Hyundai Motor America. “It’s not just about horsepower today — it’s about efficiency.”

Hyundai has always done a magnificent job in the styling department, borrowing cues from the best in the business. So it was not surprising that Genesis fit the fashion scene of Miami Beach and Coral Gables, where the V-8 cruised quietly in a recent demo tour, loaded to the gills with luxury features.

The nicely proportioned body rides on a 115.6-inch wheelbase that is more than 3 inches longer than that of the Lexus GS and more than an inch longer than the Infiniti M’s.

The Genesis face is predatory, with a tapered aluminum hood framed by backswept high-intensity headlamps resembling the eyes of a raptor. A trapezoidal grille with winglike vanes accentuates the curvature of the snout above a low-to-the-ground air scoop that represents the predator’s mouth.

The aerodynamic roofline flows back onto a short deck and a blunt rear end tightly tucked and decorated with wraparound taillamps.

To achieve instant credibility in the premium market, Hyundai had to provide more of everything at an unbeatable price: More horsepower than a Lexus GS and Infiniti M, better longitudinal balance than a Lexus ES 350, bigger disc brakes than a Mercedes-Benz E550, better aerodynamics than a BMW 5-Series and Cadillac CTS and faster acceleration from zero to 60 mph than the BMW 750i (6 seconds) or the Lexus LX 460 (5.9).

The new Tau V-8 has more horsepower per liter than any of its V-8 competitors and outperforms all V-8 performance sedans with an EPA fuel-economy estimate of 17 city miles per gallon and 25 highway, according to Hyundai research.

But where Genesis really exceeds expectations is in its load of standard equipment. A $36,000 Genesis 3.8 with the Premium Package Plus is $8,000 less than a comparably equipped Infiniti M35 and $22,000 less than a comparable BMW 535i.

Standard on the 3.8 models are 17-inch alloy wheels, fog lamps, automatic headlights, dual power heated side mirrors with turn signal indicators, leather upholstery with heated power seats, proximity entry with electric push button start, leather-wrapped tilt steering wheel with audio controls, dual automatic climate control, AM/FM/CD stereo with auxiliary input jacks and Bluetooth.

When you move up to the 4.6, you get 18-inch hyper-silver alloy wheels, chrome lower body-side moldings, power glass sunroof with tilt and slide, power tilt and telescopic steering column, integrated memory system, Lexicon 15-speaker surround-sound audio system, six-disc CD changer, illuminated scuff plates, wood-trimmed leather steering wheel, electrochromic auto-dimming interior rearview mirror with Homelink and compass, power rear sunshade and rain-sensing wipers with auto defogger windshield.

In another extreme measure to challenge the luxury market, Genesis has even matched the Rolls-Royce Phantom as the only other car to offer a Lexicon-branded audio system featuring Logic 7 technology. The surround-sound audio system includes an 11-channel digital amplifier and 17 speakers producing more than 500 watts of sound in 7.1 discrete audio. Hyundai also claims to be the first popular brand to offer digital HD Radio from the factory.

Navigation-equipped Genesis models also include a 40-gigabyte hard drive and XM NavTraffic. The Genesis also comes standard with XM Satellite Radio with a three-month free subscription.

Continuing the coverage that helped overcome early doubts about Hyundai quality, the Genesis warranty includes five-year/60,000-mile bumper-to-bumper protection, 10-year/100,000-mile limited powertrain warranty and seven-year/unlimited mileage anti-perforation coverage. Buyers also get free 24-hour roadside assistance for five years.

Although Hyundai cannot match the prestige of such names as Infiniti, Lexus and Acura, it can grab a piece of the market that wants luxury at a more affordable price. Hyundai at one time considered creating a luxury brand for models such as the Genesis but decided the cost was too high for the rewards.

Hyundai was wise in moving gradually upmarket from its current position, avoiding the marketing boondoggle of Volkswagen’s exotically priced Phaeton.

So far, the Genesis is selling well, and Hyundai predicts a total of 20,000 sales in the first year of production.

“Consumers are showing their vote of confidence and that they will step up for a Hyundai,” Deitz said.

By RICHARD WILLIAMSON
SCRIPPS HOWARD NEWS SERVICE

Is the six as impressive as the eight?

We’ve walked away suitably impressed from the Genesis before – but that was when it was suitably kitted up in its top spec with a big ol’ Korean V-8 under the hood. While the V-8 car may be enough to run with the big dogs, we were curious what the six-cylinder 2009 Hyundai Genesis 3.8-which Hyundai expects will be the best-seller-had to offer.

The list is long

Given today’s gas prices, buyers might be looking to the V-6 for its economy, but its EPA ratings are only 1 or 2 mpg better than the V-8. At nearly $5000 less than the V-8 model, the 3.8 is poised to offer the best bang for the buck. Starting at $33,000, the base Genesis already carries an encyclopedic amount of standard equipment. Features such as dual-zone automatic climate control, leather upholstery, heated front seats, traction and stability control, side- and side-curtain airbags, Bluetooth, and keyless ignition are all standard.

Shoppers can opt for one of two Premium Packages. Our test car was equipped with the Premium Package Plus, which adds a surround-sound audio system, leather-trimmed dash- and door panels, 18-inch alloy wheels, rain-sensing wipers, and a power sunroof.

Ticking this option box costs $3000; a significant figure, certainly, but it renders the Genesis virtually loaded at just under $36,000. In fact, the only way we could have packed any more content would have been to tick the box for the Technology Package, which adds a more powerful surround-sound system, DVD-based navigation, HID headlamps, parking sensors, and an extra $4000 to the sticker price.

Haven’t we seen this before?

If imitation is the sincerest form of flattery, then Lexus must be blushing. The long, smooth forms of the Genesis might not ape those of any one particular Lexus, but try and discern the Hyundai’s front fascia from that of a recent ES or LS-it’s no easy task.

Although the design language may be derivative, the Genesis presents a shape that’s smooth, well-proportioned, and easy on the eyes. All except perhaps the waterfall grille. Although intended to give the car a ritzy look, it comes off as an awkward afterthought.

Interior

What carries a genuinely upscale feel, however, is the interior. The designers did a terrific job of crafting a contemporary and attractive interior that blows away any preconceptions of what a Hyundai can be (the aforementioned leather dash trim really helps in this regard). Open the doors, and you feel like you’re stepping into the interior of a $60,000 vehicle. Fit and finish of interior panels is consistently tight, although some switchgear could stand some refinement.

If there was any complaint we had about the Genesis’ cabin, it was the front two bucket seats. Although they were certainly comfortable (and as soft as a microwaved marshmallow), they were a little too flat. One tester noted you sit on them – not in them – and consequently they weren’t supportive in spirited driving. But a car like this isn’t only about those in front. Rear-seat passengers are treated to some of the best accommodations we’ve seen in car under $40,000.

Smooth but unhurried

Though the V-8 is an all-new engine (the 4.6-liter “Tau” DOHC V-8), the Genesis 3.8’s V-6 is a carryover from other Hyundais. The “Lambda” engine, a 3.8-liter DOHC unit, produces 290 hp and 264 lb-ft of torque. That’s down from the 375 ponies and 333 lb-ft of the V-8, but it proves more than capable of moving the 3700-lb Genesis without strain.

Helping the V-6 considerably is a standard six-speed automatic transmission. Shifts, for the most part, are smooth, if not deliberate. Hyundai lets drivers row their own gears with a requisite manumatic provision, but there’s no sport mode. That’s a shame, as we’d welcome quicker-shifting sport mode, given that the transmission doesn’t like to be hurried into selecting a gear.

More luxe than sport

Though some cars in this comparison sliced through corners with ease, the Genesis was decidedly less sporty. Although Hyundai often compares the car’s handling to a Lexus GS or Infiniti M, the ride is tuned more towards luxury.

Over back-roads flogging, some found the car too soft, but the independent suspension (a five-link setup at each wheel) kept things from turning to Jell-O in the corners. The Genesis exhibits some oversteer at its limits, but the stability control, which is always on guard, helps reign in the back end.

The soft suspension pays dividends with a comfortable low-speed ride. Unfortunately, some of that comfort disappears in highway driving, where the Genesis can be too stiff. Even moderate imperfections in the road surface are telegraphed through the steering column, making the car feel busy.

Will Six Get You Eight?

We’d argue the biggest question surrounding the Genesis V-6 is not how it fares against its immediate competition (quite favorably, thank you), but against itself. The V-8 car is an outstanding bargain for what it offers, but is it worth an extra $5000 over the six?

No, it probably isn’t. Although those with a V-8 fixation will spring for the 4.6-liter (and love it), the rest of the world-especially those looking for a lavish lifestyle on a bohemian budget-will be more than content with the V-6.

2009 Hyundai Genesis 3.8

Base Price: $33,000
As Tested: $36,000

Powertrain
Engine: 3.8-liter DOHC 24-valve V-6
Horsepower: 290 hp @ 6200 rpm
Torque: 264 lb-ft @ 4500 rpm
Transmission: 6-speed automatic
Drive: Rear-wheel

Measurements
L x W x H: 195.9 x 74.4 x 58.3 in
Legroom F/R: 44.3/38.6 in
Headroom F/R: 38.1/37.7 in
Cargo capacity: 15.9 cu ft
Curb Weight: 3748 lb
EPA Rating (city/highway): 18/27 mpg

By Evan McCausland

A billboard near a Hudson Valley enclave urges people to “drive prestige.” It is an unabashed pitch to egos in pursuit of sales of expensive European and Japanese automobiles — BMW, Mercedes-Benz, Porsche and Lexus. But times are tough. Prestige no longer gets an automatic nod. Prestige without value, or encumbered by suspect worth, nowadays gets the boot. Into that environment comes Hyundai Motor America with its most expensive automobile to date, the rear-wheel-drive 2009 Hyundai Genesis sedan. It’s aimed at what the car industry calls the “near-luxury segment” — that part of the market priced from about $30,000 to $50,000.

Going for the gold

Conventional wisdom suggests that Hyundai is making a mistake. It is a Korean-owned company that made its mark in America, a poorly formed scratch that eventually became a strong product signature, selling economy automobiles and wagons. What is Hyundai doing trying to sell cars priced from $33,000 to $42,000?

The short answer is that Hyundai, like its competitors, is going for the gold. If successful, Hyundai could reshape popular notions of prestige. In the process, it could elevate the meaning of “value.”

Style without sticker shock

Its styling is attractive inside and out. And the car is loaded with amenities, including touches such as a power rear sunshade.

What the Genesis lacks is an astronomically high price. Depending on the model, the Genesis can cost from $200 to $22,000 less than competitive European and Asian automobiles.

In that regard, the Genesis is a celebration of luxury without hyperbole, luxury with a deal, including one of the best automobile warranties in the business — five years/60,000 miles bumper-to-bumper protection and a 10-year/100,000-mile limited warranty on engine and transmission.

Complaints: The steering in the Genesis 4.6 takes some getting used to. Initially, it feels a bit heavy and off-center, as if it wants to move slightly opposite of your intended turn. But you soon learn to let it do its thing, which turns out to be wonderfully precise. By comparison, the steering in the Genesis 3.8 is remarkably compliant to driver input.

Ride, acceleration and handling: Both the Genesis 4.6 and 3.8 move with agility, speed, power. My favorite is the Genesis 3.8, which feels lighter and quicker and gets 27 miles per gallon on the highway vs. 25 mpg for the Genesis 4.6.

Head-turning quotient: To all of you who asked: Yes, Hyundai designed, developed and manufactured the Genesis, which rolls out of a Hyundai assembly plant in Ulsan, Korea. It’s an attractive piece of work that proves no one has a corner on automotive talent.

Body style/layout: The Genesis is a front-engine, rear-wheel-drive, full-size, entry-level luxury sedan. It is offered in two basic formats, 4.6 and 3.8, with three trim levels — “premium,” “premium plus” and “technology.”

Engines/transmission: There is a 4.6-liter V-8 that, using premium gasoline, develops 375 horsepower at 6,500 revolutions per minute and 333 foot-pounds of torque at 3,500 rpm. The available V-6, which produces 290 horsepower at 6,200 rpm and 264 foot-pounds of torque at 4,500 rpm, runs on regular gasoline. Both engines are mated to a six-speed transmission that can be shifted automatically or manually.

Capacities: There are seats for five people. Luggage capacity is 15.9 cubic feet. The fuel tank holds 19.3 gallons and takes unleaded gasoline.

Mileage: I averaged 16 mpg in urban traffic and 24 mpg on the highway with the V-8. In the V-6, I did two to three mpg better all around.

Safety: There are eight air bags, including head and side bags front and rear. Body construction is rigid. Electronic head restraints, stability and traction control are standard along with anti-lock brakes.

Price: Start at $33,000 for the 3.8, including a $750 shipping charge. The Genesis 3.8 can be optioned out to about $40,000. Prices for the Genesis 4.6 start at $38,000, including the $750 transportation charge. The 4.6 can be optioned out to $42,000. Prices are sourced from Hyundai.

By Warren Brown, Washington Post

With fewer than three months remaining in 2008, it’s been a quite a year: The last games were played at Shea and Yankee stadiums, Merrill Lynch almost went broke and Hyundai – Hyundai! – introduced a $38,000 car that can become a $40,000 car with options.

Why? For the same reason Willie Sutton said he robbed banks instead of five-and- dimes: That’s where the money is. There’s more profit to be made on higher-priced models than in the inexpensive small cars for which Hyundai is best known.

And so we have the big 2009 Genesis sedan, available with a V-8 at $38,000 to start, or a V-6 starting at $33,000. It’s a strong entry in what carmakers call the “near luxury” arena – $30,000 to $40,000. Hyundai nibbled at the low end of that range with the Azera, a front-drive large sedan that can run into the low $30,000s with options.

But the Genesis presses the attack further and only time will tell whether it’s a bridge too far. Hyundai dealers have no experience selling and servicing luxury cars and Hyundai’s name still says “economy,” – not “cache.” True, they said the same thing about Toyota, but when it entered this part of the market in 1990 it created the Lexus brand and a separate dealer group (as did Honda with Acura and Nissan with Infiniti). Hyundai says it’s not ready for that yet.

The Genesis’ timing might be unfortunate. It arrived at dealerships this summer amid darkening recession clouds that have made consumers skittish about major purchases.

Quality, though, shouldn’t be a concern. Hyundai’s early problems in that area seem to be history; Consumer Reports recommends several of its models for which it has reader feedback about reliability. Hyundai has scored above average in J.D. Power and Associates’ two most recent buyer surveys, measuring dependability and customer satisfaction.

And Hyundai backs the Genesis with an impressive warranty. It’s good for five years or 60,000 miles – 10 years and 100,000 miles on the powertrain.

On paper, then, the Genesis looks like it’s worth considering. Its styling is unremarkable – classically simple, if you prefer. Its dashboard is as ugly as it is ergonomically friendly; the protrusion from its lower center of a pod with audio and climate controls makes the dash look like it’s sticking out its tongue at the car’s passengers. But the interior is richly finished, in leather.

On the road, the Genesis rides firmly but comfortably, handles confidently and is delightfully quiet over just about any surface. Rear seat legroom is generous. Some might find the steering a bit heavy during parking.

Most drivers will deem the 290-hp. V-6 more than adequate. The EPA estimates fuel economy at 18 mpg city and 27 highway, and I averaged in the low 20s in mostly highway driving. The government numbers for the V-8 are 17 and 25. Hyundai specifies regular gas for the V-6 but says the V-8 will need premium to deliver the 375 hp., of which it is capable.

Hyundai says the V-8 gets the Genesis to 60 mph a half-second faster than the six, or in 5.7 seconds.

The Genesis has the government’s topmost, five-star, safety rating for its front, side and rollover protection.

The Genesis has a lot going for it but, as Hyundai’s spearhead into new territory, it carries risk for buyers if it fails: poor resale value. This might be a car better leased than purchased.

Vehicle Tested: 2009 Hyundai Genesis 3.8

Engine: 3.8-liter V-6, 290 hp.

Fuel: Regular

Transmission: Six-speed automatic, rear-wheel drive

Safety: Dual front and curtain-type air bags; seat-mounted front and rear side-impact air bags; four-wheel disc brakes w/anti-lock, stability control and brake assist; heated side mirrors with turn signals; fog lamps

Place of Assembly: Ulsan, South Korea

Trunk: 15.9 cubic feet

EPA Fuel Economy

Estimates: 18 mpg city, 27 highway

Price as Driven: $36,000

Tom Incantalupo | ROAD TEST