Snooooooooze. This is just some Korean car with a set of improved quality ratings, a cheap sticker price, and a good warranty. Right? Wrong. You might think Hyundai’s new Concept Genesis has little effect on your life and the lives of those who really care about driving. But, in fact, it does. And it’s part of a larger story that shows how important car enthusiasts really are in the eyes of global organizations.

That’s because the car you see here isn’t simply a concept. It’s an emerging company’s moon shot—the kind of risk that a growing, small player takes in order to become a big player, often with force and by surprise. It’s Sam Adams and his men tossing tea into Boston Harbor, George McFly punching Biff Tannen in the nose, or—perhaps—Lexus eclipsing Mercedes-Benz. All established empires operate with a whiff of egomaniacal malaise, creating opportunities for the clever and hardworking.

Hyundai is that up-and-comer today. Known commonly for cheap cars with a good warranty, it now has its sights set on names like Lexus, BMW, and Cadillac. And damn if it isn’t doing a good job of getting there. Who would have thought the company that launched in our market with only one model—the hatchback Excel, retailing for $4995 in 1986, according to Kelley Blue Book—would aim so high?

The Concept Genesis isn’t simply one vehicle. It’s actually the platform for four new models, each targeted at a different segment of the enthusiast market. This product onslaught will take Hyundai (and its sister company, Kia) into an entirely new realm in the coming decade. Are they prepared to swim in such deep waters? Who are they kidding, building a rear-wheel-drive V-8 sedan?

The basis for all this fanfare is the company’s new “BH” platform, which will spawn the Genesis (already green-lighted for production as a 2008 model and on sale in the second quarter of 2008), an extended Genesis “Plus” model, a new sporty coupe, and a Genesis-esque model for the Kia brand. All four will feature rear-wheel drive and options for V-8 and V-6 engines. None are scheduled to receive manual transmissions at this time, although we can’t imagine the sports coupe launching without a six-speed manual.

The company has a lot of work to do to pull off $30,000 sports sedans and coupes with performance credentials (V-6 Genesis models will start under $30,000, while V-8 models should start in the low-$30,000 range). But, a lot of work has already been done. In fact, the Genesis might be one of the most tested cars in recent times—and certainly the most carefully engineered project in the history of Hyundai Motor Company.

“I started seeing Genesis prototype models in the summer of 2005,” said our contact at KGP Photography, the famous spy-shot house we frequently work with at WINDING ROAD. “They arrived for desert heat testing with a slew of other prototypes from the Hyundai and Kia portfolio, but the Genesis stood out as something really worth a closer look. Under cover of darkness, we descended upon one of the prototypes to snap interior shots and to measure the car’s wheelbase. It was then that everything became clear. The interior was completely finished and very well appointed with lots of leather and wood. Rarely do you see a prototype so fully finished more than two years before its release. The thought, ‘They’re going after Lexus,’ immediately came to mind.”

They’re also going after Cadillac and BMW. In fact, KGP Photography saw the Hyundai engineers again in 2006, racing the Genesis prototype through the desert with a BMW 5-series as a comparison vehicle. That the Genesis underwent testing as far back as the summer of 2005—in nearly production-ready form—shows how serious the company is about its move upmarket.

“We froze the design, unfroze it, reworked it, and froze it again,” said John Krafcik, Hyundai vice president in charge of product planning. “This car has had the longest gestation period of any in the company as far as I know. It makes sense to take the time to do this when you’re entering a new segment. And, it’s a different task. It’s not necessarily harder, just different. Rear-wheel-drive unibody is really different—just in doing an independent rear suspension and finding out what the vehicle feels and sounds like. It’s different and therefore requires a different approach to it all.”

Will the Genesis really compete against Lexus, BMW, and Cadillac? Looking solely at the numbers, the car has a great shot. The new “Tau” 4.6-liter V-8 will generate “well over 300 horsepower” and come mated to a six-speed automatic with Shiftronic controls. “Well over” should get up and over 350 horsepower, if Hyundai is benchmarking the BMW 550i (its V-8 generates 360 horsepower). The 0-60 times should fall under six seconds, too. If it meets the numbers, it still won’t be a BMW. But if it’s less expensive and categorically different, will that matter? Some say it will.

“Hyundai doesn’t have a tremendous amount of experience with performance yet, and the Korean market isn’t demanding it,” said John Wolkonowicz, analyst with Lexington, Massachusetts-based Global Insight. “But, because they are such ardent benchmarkers, the car has current specs that say it will have decent performance. I think the ‘BH’ platform in general is going to be a blockbuster product. It will be a Hyundai, however. That is a marketing strategy that not everyone will agree with. It will be like putting a moustache on the Mona Lisa.”

Ah, there’s the rub. The Hyundai brand doesn’t have a ready-made marketing image to match the car they’re building. And the service end of the business—754 U.S. dealers, of which fifty chronic underachievers were recently put on watch by company COO Steve Wilhite—does not inspire thoughts of Lexus or BMW. In other words, why create these great products for the Hyundai lineup? Why not create a Lexus-like premium brand?

“The decision to create this car was made before I arrived, but when I came here I was very happy to hear about a rear-wheel-drive platform for Hyundai,” said Krafcik. “It’s a sense of credibility that comes with the platform. One of the fundamental problems we’ve had with our brand is that we haven’t had a hardware-based communications tool to connect with enthusiasts. With a car like Genesis and others that will follow, we will have a really important dialogue with automotive enthusiasts, who so far maybe haven’t thought of Hyundai as a car they can recommend. So far, we haven’t really had an exciting car. We’ve had a great car. We’ve had a high-value car. But I think having cars like Genesis will give people the opportunity to say ‘Whoa.’ Right now I’m not sure if we get the benefit of the doubt for our entire lineup.”

The classic “halo car” marketing strategy is in play. But, Krafcik and Wilhite haven’t made up their mind on another brand. Creating another network of dealerships and products isn’t easy, but it could happen at some point in the future.

“We haven’t decided that as of yet,” said Krafcik. “Genesis will be sold through our Hyundai dealers as a Hyundai, but we’re still in the midst of discussions as to whether or not we should have an alternative distribution channel with a new name. It’s still a possibility.”

However, there are those who believe Hyundai’s current situation wouldn’t be improved by the creation of a new brand. The biggest reason: cost.

“The biggest failure in [Hyundai’s] situation is that the Korean executive is the most expensive product planner on the planet,” said Jim Hall, analyst at AutoPacific, an automotive consultancy in Southfield, Michigan. “Hyundai is a manufacturing concern. So they believe in building more as a way to grow market share. They’re not a marketing company, they’re a building company. Some people do think they should build a new brand for all this stuff. But, it’s too expensive for them. We’ve studied it, and it looks like it would have been a billion dollars to do it. Remember, once you build a new brand, you have to support it and feed it with product.”

Creating more products for a new lineup would be a big job, indeed. If the Genesis, the Genesis Plus, and the coupe were hit products on their own, they still wouldn’t constitute an entire lineup. Premium brands in America need SUVs and crossovers, which Hyundai could do as modified versions of the Santa Fe and Veracruz, if they had the time and money. But if they did create a premium brand separate from the Hyundai lineup, what would happen to Hyundai? It could fall danger to becoming the “Mercury” of the company—too expensive for entrylevel buyers, but not good enough to be considered premium. That’s a risk the company doesn’t seem to be willing to take right now.

Whatever the future holds for the marketing side of Hyundai, we’re confident the products are going to start skewing toward an enthusiast audience. The logos might change. The dealerships might get nicer carpet. But one thing—and only one thing—matters: a great product. Bring on the Genesis. And Exodus. And Leviticus. Call it whatever you want, Hyundai. Just bring it to us.