Hyundai to launch luxury car in U.S. with iPad included

It just might be the world’s first paperless car:
Hyundai Motor America will include an iPad — loaded with a digital
version of the thick owner’s manual — with the luxury sedan it plans to
launch this fall.

The iPad pitch is aimed to tap into the hype over Apple Inc.’s
sleek new tablet computer, which is slated to be released Saturday, and
will be included as part of the package for consumers who drive off
with Hyundai’s Equus luxury sedan.

People who purchase the South Korean automaker’s
first venture into the super-premium auto market will also be able to
use one of the tablet’s pre-loaded applications to make service
appointments.

“They are trying to position themselves as a modern,
in-touch, technologically savvy brand. It is the sort of innovation you
would expect from BMW or Mercedes, but not Hyundai,” said Mike Boxham, director of insight and research at Ball State University’s Center for Media Design.

Known for budget cars such as the $9,970 Accent and the $14,145 Elantra, Hyundai
is trying to break into the high-end market with the Equus, which the
manufacturer compares to the Lexus LS 460 and Mercedes-Benz S550
sedans. The three vehicles are similar in size and are equipped with
engines that have about the same strength — in the 380-horsepower range.

(Hyundai is pursuing a strategy similar to one used in the late 1980s by Honda Motor Co. and Toyota Motor Corp.,
which expanded their portfolio of products by moving into higher-profit
luxury cars with their respective Acura and Lexus brands.)

The Equus will sell for $50,000 to $60,000, according to Hyundai
executives. The exact price will be announced closer to the sales
launch. But they note it will be thousands of dollars less than the
Lexus, which has a sticker price of $65,380, and the Mercedes, which has a suggested price of $91,600.

And, reasoned the auto manufacturer, customers who
would be inclined to spend more on their cars were the same people who
would be drawn to spendy technological gadgets.

“We thought it was keeping the vehicle in tune with the owners we expect to attract,” said Chris Hosford, spokesman for the U.S. sales division of the automaker.

But whether Hyundai will be able to compete effectively in that market — even with offering a $499 iPad as an incentive — is questionable, said Rebecca Lindland, auto industry analyst at IHS Global Insight.

“The car itself looks great and is high-end, but I
think people will have a difficult time justifying paying that type of
money for a Hyundai,” Lindland said.

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