Genesis Motors to Expand Lineup of Its Genesis G80 through Downsizing

Nov 22, 2017

Genesis Motors is looking to expand lineup of its Genesis G80 starting from next year by adding 2.0 gasoline turbo engine and 2.2 diesel engine models because it is difficult to increase sales and enter foreign markets with current models with high engine displacements. Not only is Genesis Motors planning to release Genesis G80 models with downsized engines in South Korea but it is also planning to release them in North America, Middle East, and Europe as well.
According to a high-ranking official from Hyundai Motor Company, Genesis Motors is going to add 2.0 gasoline turbo engine and 2.2 diesel engine to its mid-sized sedan ‘G80’ during first half of 2018. As a result, G80 will be comprised of five engines.
2.0 gasoline turbo engine is also an engine that is used by Genesis ‘G70’ and Kia Motors’ ‘Stinger’ and it implements maximum output of 255 horsepower and maximum torque of 36.0kgf.m. Genesis Motors is planning to compose engine settings different than before as empty G80 weighs almost two tons.
2.2 diesel engine displays maximum output of 202 horsepower and maximum torque of 45.0kgf.m. Although it is a R Engine that was applied to G70 and Stinger, there are some differences. In order to meet exhaust gas standards ‘WLTP (Worldwide Harmonized Light Vehicles Test Procedure)’, which will be introduced by Ministry of Environment in September of 2018, 2.2 diesel engine will be equipped with ‘SCR (Selective Catalytic Reduction)’ device that injects urea.
“Although G80 2.0 turbo model was only sold to export to Russia, we are planning to release it in South Korea as well as there are a lot of demands for downsized models.” said a high-ranking official from Hyundai Motor Company. “Although 2.2 diesel engine that is used for G80 is based on Hyundai Motor Company and Kia Motors’ major diesel engine called ‘R Engine’ used for G70, Stinger, Grandeur, and Santa Fe, it also displays performance that is better than Germany premium diesel sedans from aspects of eco-friendliness, fuel efficiency, and NVH (Noise, Vibration, Harshness).”

2018 Genesis G80 model (Provided by Genesis Motors)
<2018 Genesis G80 model (Provided by Genesis Motors) >

Reason why Genesis Motors is expanding lineup of engines for G80 is because growth of G80’s sales has reached its plateau. Genesis Motors sold 32,912 G80s in this year until the end of October, and this amount is 2.2% smaller than that from the same period of last year. G80 models are only composed of high engine displacements such as 3.3 gasoline engine, 3.3 turbo engine, and 3.8 gasoline engine. However sales volumes of cars with high engine displacements started to go down recently due to reasons such as tax, oil cost, and environmental pollution.
Another reason why Genesis Motors is expanding lineup is because it wants to prepare to enter foreign markets. After releasing Genesis brand in the U.S., and Middle East in 2016 and 2017 respectively, Genesis Motors is planning to release it in Europe and China in 2018. It is necessary to expand lineup of different engines in order to enter foreign markets. Chinese markets especially provide huge support for eco-friendly cars and cars with low engine displacements. Although European markets are slowly putting out policies that will exclude diesel cars, sales of diesel sedans are still high.
“While an equation of ‘luxury car = high engine displacement’ was established when G80 was first released, current trend has downsized engines to be used by flagship sedans as well.” said a representative of an industry. “Although some may think that demands for diesel engines have been reduced after Volkswagen’s ‘Diesel Gate’, about half of German premium sedans that are being sold in South Korea are still equipped with diesel engines.”
On the other hand, Genesis Motors was planning to release G80 diesel models last year. However Genesis Motors postponed release dates of entire diesel lineups as South Korean Government put out a plan that would increase taxes levied on diesel models after finding out last year diesel cars were one of the main causes for fine dust. Although many predicted that sales of diesel cars would be reduced due to negative perception from consumers, actual sales did not get reduced by a lot. Also percentage of premium sedans such as BMW’s ‘5 series’ and Mercedes-Benz’s ‘E-Class’ with diesel engines still take up between 40 and 50% of South Korean markets for imported cars.
Staff Reporter Ryu, Jongeun | rje312@etnews.com

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