Despite timing, Hyundai enters luxury market

"It was an extremely expensive vehicle with a Volkswagen badge on it," Bragman said.

But Krafcik said with a far lower sticker price, the Genesis is not the Phaeton.

Still, he said Hyundai has some explaining to do. The marketing plans for the Genesis, he said, point out how thoughtful the company was in designing its first luxury entry.

"We recognize that we've got this burden of proof," Krafcik said Wednesday while showing off the new car to automotive reporters.

Television ads already are starting to air, and Hyundai was fortunate enough to get the first 30-second spot after U.S. Olympic swimmer Michael Phelps won his eighth gold medal in Beijing, Krafcik said.

Bragman said Hyundai also has to use an economy car dealership network to compete against premium dealers who are used to satisfying their customers' every whim for a price.

"It's the whole showroom," he said. "The same sales guy who is going to sell you your luxury car is going to sell you a teeny subcompact."

Krafcik said Hyundai dealers have responded well to training on how to handle luxury buyers.

The company, he said, eventually hopes to sell 50,000 Genesis models per year, including a new coupe coming early next year.

He said the slumping economy in a way should help the car, attracting buyers who may not be able to spend as much on a high-end vehicle but want to keep the performance and features of a luxury car.

"That's part of the reason why we're gaining market share this year," Krafcik said.

Already, the company is seeing people trade in BMW, Mercedes and Lexus models for the Genesis, which Hyundai hopes will boost the company's brand image.

Schuster said despite headwinds and formidable competition, Hyundai could still carve out a share of the market.

"This is moving the brand in a different direction and you're starting to push up against some heavy hitters out there in terms of brand image," he said. "It's difficult to go after that with a product from more of a mainstream brand."

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