Hyundai to offfer extra service to U.S. buyers of Equus

Hyundai Motor Co. wants 300 of its U.S. dealers to add separate showroom space for its Equus sedan and call on buyers at home, to avoid building a premium dealership chain.

Equus, a V-8 engine sedan that goes on sale later this year, will be priced at "between $50,000 and $60,000," John Krafcik, chief executive of Seoul-based Hyundai's U.S. unit, said at the New York International Auto Show yesterday. Dealers will bring cars to customers for test drives, pick them up for maintenance and supply an Equus or Genesis stand-in during servicing.

"Who really likes to go into a Lexus dealership, or any dealer for that matter? Our whole idea was to leapfrog that," Krafcik said in an interview yesterday. Hyundai targets annual U.S. sales for the Equus at 3,000, he said.

Hyundai, South Korea's largest automaker, entered the luxury auto market in the U.S. with the Genesis sedan and coupe in 2008. With Equus it's challenging a segment dominated by Toyota Motor Corp.'s Lexus, Bayerische Motoren Werke AG's BMW and Daimler AG's Mercedes-Benz.

"It's definitely risky for Hyundai to add a model like this, since it's always promoted itself as a value brand," said Jessica Caldwell, director of industry analysis for Santa Monica, California-based Edmunds.com. "At the $60,000 level, customers are pretty discerning about what they're buying."

Equus sedans will come with vehicle information loaded onto Apple Inc. iPads instead of owners' manuals, Krafcik said. Buyers can also schedule service appointments through the tablet devices.

Hyundai yesterday reported a 15 percent rise in U.S. sales in March. The company's U.S. operations are based in Fountain Valley, California.