Genesis Brand in Trouble, Global Head Abruptly Substituted

by Aug 6, 2020All News, Europe, Genesis, South Korea, USA5 comments

genesis trouble

Hyundai Motor Company has appointed Jaehoon (Jay) Chang, Executive Vice President, as the new Global Head of the Genesis Brand starting on August 1, 2020, while former head of Genesis William Lee as moved to Innocean as a clear sign of shaking inside luxury brand.

Apparently, this could be another tradicional executive movements inside Hyundai Motor Group board, if it weren’t because the company is currently in trouble after several GV80 and G80 problems including software errors, engine tremors, fire, delay of launching new models in the United States or even the several times delayed comeback into the European market of the Genesis Brand.

The fatalities began earlier June, when Hyundai Motor Group decided to suspended production and shipment of the diesel model of the Genesis SUV GV80. Genesis said to the buyer of the GV80 at 5:15 pm “Intermittent vibrations have been found in some vehicles of the recent GV80 diesel models.” “It’s happening.” “There is no problem with safety, but we are conducting inspections because we can feel uncomfortable,” he said to buyers of purchases.

While trying to fix the problems, we have seen many prototypes testing around the Hyundai Motor Group R&D Center in Namyang, South Korea, on June 11th announced that it will extend the warranty period for the engine parts of all GV80 diesel models shipped from this day to 5 years or 100,000 km from 10 years or 200,000 km just to relieve their customers.

After that, the G80 fire case happened and it is still unkown what was the real cause for the fire of the G80 2.5-liter (remember that the Grandeur that was caught also on fire used the same engine, which is reported to have oil leak problems). The next step was when Genesis recognized and informed that will update up to 6 different software problems found on its recently released third generation G80 sedan.

genesis-gv80-test-car-3

Genesis GV80 diesel test car

We’ve also seen photos of 2021 Genesis G80 and GV80 prototype models sitting at Hyundai Motor America facilities collecting dust, giving more evidence that the arrival of these cars has been delayed. This includes a matte gray GV80 and matte gray G80, along with other Genesis models such as a two-tone G90.

And the icing on the cake is the replacement of Global Head Boss, that according to South Korean many inside and outside the company see it as a censure (he has moved to Innocean). This is because he is a person who has gone through key overseas business units. This time, the personnel who have assigned overseas automobile sales offices as advertising affiliates are bound to be seen as censure.

Despite Genesis sales in the domestic market increased by 51.5% from the previous year. The problem is that this move is limited to the domestic market. In fact, Genesis sold only 7.540 units in the first half of this year in the US, the only overseas market. It dropped 24.7% from the same period last year.

When William Lee was elected as head of the Genesis Business Division, he said, “As a field expert who is proficient in overseas business strategy and sales, as well as a wealth of experience in the US market, which is the main market of Genesis, is the right person to contribute to the sustainable growth of the Genesis business unit.” received.

genesis-g80-on-fire

Genesis G80 fire case

However, until recently, looking at the progress of Genesis, it is only staying in the bedroom. In the aftermath of Corona 19, a setback occurred in the launch of new cars and brand launches, but it was not able to properly present a new vision by immersing in domestic sales.

The lack of understanding and opaque vision of the global luxury car market and the inability to erase the shadow of his predecessor, Manfred Fitzgerald, are evaluated as holding back Lee. We are also pretty sure that behind Luc Donckerwolke’s abruptly step down could be related to all of this problems.

What do you think about the new chapter of “Genesis fate”

US-spec G80 waiting for a new sunrise

News Source: Motorgraph & AutoPost 1 , AutoPost 2

Written by Jose Antonio López

Passionated about Korean cars from Hyundai, Kia & Genesis. Photographer. I love being in nature, hiking. Tech lover.

5 Comments

  1. Archknight77

    Curious if the 2.5T is causing similar issues with Hyundai and Kia as well? If it is not then Genesis may want to leapfrog the G60 series cars into production as FWD based subcompact models. I know they want to be different, but the brand needs continued volume. It’s easier to reskin and repackage an existing model with better equipment to pull in cash, rather than lose money until problems are solved on larger cars.

    Genesis could simply offer AWD as standard, along with the powerful 1.6T hybrid setup and 8AT or 8DCT (sportier feel). The 12.3 inch dual screen setup could be the upgrade for the interior, along with rich contemporary color interiors. They have good bones in the new Elantra and Sonata platforms, they just have to be bold on implementing it. Once the 2.5T issues are resolved they could then make that a second tier Sport trim, which they could use to compete with the likes of the S3, A45, CLA45, 2 series, etc. If they are supposedly worried about deluting the brand, they don’t have to be as Genesis is all new to the world and has to establish itself as a luxury player. They’ve proven they can make large cars, but with the economy the way it is, to survive you also have to go after new buyers.

    Reply
  2. Mark

    LOL what is this dumb article? Completely filled with misinformation and written in terrible English with no sources. Stop being a useless clickbait site and start giving people facts instead of your crap gossip and garbage renders.

    First of all Genesis G80 and GV80 were delayed in North America because the EPA testing facility was closed due to COVID- this was mentioned by Automotive News recently. The G80 2.5’s fire was an accident due to a piece of road debris lying underneath the car that caused friction on the road- this was known the day of the accident. And Luc Donckerwolke was announced to have stepped down at the end of April, well before any of the “issues” you mentioned took place.

    Also looking up William Lee, he was one of the founding executives of Innocean to begin with- so how this a “censure”?

    The GV80 and G80 broke sales records for Genesis as a brand in Korea, and the new GV80 already has some 15,000 preorders in the States. To claim that the brand is failing in a cheap clickbait attempt like this is pathetic.

    Reply
  3. comment_bot.exe

    Just wanted to throw in a comment regarding Luc’s departure here… I have it on multiple sources very close to the matter (in both Korea and California design studios) that he, along with another individual, were involved in some dishonest practices/conflicts of interest. Needless to say, both resigned as a result. Don’t want to be too specific on details, but just wanted to settle the speculation that I’ve seen since his departure.

    Reply
    • Jose

      Thank you!

      Reply
  4. Cavallino Rampante

    I hope the KCB keeps reporting from the perspective of the whole world and not just the USA as some here would prefer.

    Reply

Trackbacks/Pingbacks

  1. Genesis Brand in Trouble, Global Head Abruptly Substituted – Cars Blog - […] Source link […]

Submit a Comment

Your email address will not be published. Required fields are marked *

Pin It on Pinterest