A Car Too Far

Nissan introduced a luxury car and branded it Infiniti. It worked.

Volkswagen introduced a luxury car and branded it Volkswagen. It flopped. (Remember the Phaeton? Precisely.)

Now Hyundai is introducing a luxury car and following the example of -- Volkswagen?

It's true that Hyundai makes high-quality and increasingly stylish vehicles (I know'"I own one). It's also true that the the new vehicle, the Equus, compares favorably on features with Mercedes'˜ S-Class while costing tens of thousands of dollars less. But Hyundai is asking a lot of this "beacon of the brand", as John Krafcik, CEO of Hyundai's U.S. unit, described the Equus.

I have a great deal of respect for what Hyundai has done over the past decade, taking a brand that was once on par with Yugo and making the product, and the brand, competitive. But I question whether people who are willing and able to lay out $55,000 or $60,000 for a vehicle will opt for the Equus. After all, buyers in that range aren't just purchasing transportation, performance, or even comfort, they're investing in identity'"the identity of the brand as a reflection of their own identity.

Perhaps the Equus will find its market and will further enhance Hyundai's improving brand image. Or perhaps this will become an object lesson about the dangers of a brand letting success go to its head. If the latter, Hyundai won't be the first to fall for it. Nor the last.

Steve McKee is president of McKee Wallwork Cleveland and author of When Growth Stalls: How It Happens, Why You're Stuck, and What to Do About It . Find him on Twitter and LinkedIn.