- Genesis is expected to kill off its cheapest sedan for 2027.
- This comes just after the automaker discontinued its only electrified sedan for the U.S. earlier this month.
- The brand says that it will continue to respond to consumer needs. Let's just hope that means pumping out EVs and hybrids like it originally planned.
The sedan is dying. Across economy and luxury brands alike, automakers are queuing up graveside to scatter earth onto their offerings, sometimes before they even hit the market. According to a new report from Automotive News, Hyundai's luxury spin-off will be one of the next car companies to go down this path.
Genesis is expected to discontinue its entry-level sedan—the G70—after model year 2027, according to analysts.
Officially, Genesis has denied that the G70 is going anywhere. In fact, it would seem silly that the brand would discontinue the model since it's the brand's no. 3 seller behind the GV70 and GV80 crossovers. But that's just it—it's behind crossovers. Clearly, consumers have a priority, and Genesis has made it clear that buying trends influence its lineup.
It's not like Genesis hates sedans. In fact, it offers three different choices for consumers today. But the Genesis G70 is currently the cheapest model offered by the luxury marque at $42,500. That means that it carries a lot less prestige when compared to the mid-range G80 (which starts at $57,100—a whopping 35% more) and flagship G90.
Perhaps that's why the G70's 5,136 sales this year look puny compared to competitors like the Mercedes-Benz C-Class (13,674 sales), BMW 3-series (14,137 sales) and BMW 4-series (23,369 sales. Genesis just doesn't carry the same gravity as the Germans—at least not yet—in a segment where brand history and notoriety drive buying decisions.
Genesis continues to invest in electrified versions of its SUVs, but full battery-electric and hybridized variants. But today, the only two BEVs that Genesis still offers are the GV60 and GV70—both SUVs. The automaker is also still expected to produce an electrified flagship SUV based on its Neolun concept. But electrified sedans? They've gone the way of the dodo.
The brand officially axed its G80 EV sedan earlier this month, justifying the move by giving similar "consumer needs" and market conditions justifications that it mentioned for the G70 above.
It speaks to a bigger cash squeeze happening across the industry. Automakers are facing higher production costs than ever and now have only two choices: cut expenses or pass them onto the consumer. Analysts believe that the G70 juice doesn't warrant the squeeze to keep up with competitors.
Realistically, I can't blame Genesis for this decision. Americans are buying fewer sedans. It's a fact. Nissan saw it when it made the decision to axe a pair of electrified sedans meant for America earlier this year. Ford even stopped building sedans five years ago. With the U.S. consumer's insatiable appetite for crossovers and SUVs, automakers are responding to established market conditions, so analysts' predictions of the G70's impending demise might not be too far off.
Let's just hope that Genesis continues down the electrified route as planned once the EV tax credit is gone.
