I have to agree that Hyundai is being ridiculous with their aspirations here. From everything I've read about Korean buying trends, BMW and Mercedes are very well regarded there, so it's not suprising their aspirations lie there, but there is no chance Hyundai will be a serious competitor here.
It's great the Hyundai and Kia have moved up from being D list manufacturers to making cars that can decently compete against mid level manufacutrers like Ford and Chevorlet, Mazda, Honda and Toyota. I drove some of their products recently and they were up to the task but when they say 3 series competitor, it's just outragous.
You can't really build something with Genesis technology that will compete with the 3 series, it just won't work. Hyndai doesn't have the ecnomies of scale in ultra premium manufacturing yet to make a 3 series fighter, if they did try to make it, it would cost them 70k per car to build. They simply can't make a 50k car, they can try to shoot for a 35k car that's almost as good and hopefully that's what they do and it works out well, a 35k knock off of a 50k car with none of the ultra high end refinement is going to be terrible. Even if they could make the individual parts as cheaply, the initial research would still make their 50k car a 70k car. BMW's staff already has the experience of making decades of ultra luxury cars so they can very easily slap together a new 3 series and make it all work well. For Hyundai to slap a new 3 series together would be a monumental task because they're starting at square 1, and I can tell you as an absolute fact that they aren't willing to spend the nesseary money to get up to speed with BMW, they simply can't and still make profit.
Take the Equus as an example of what will happen if they shoot for the 3 series, it sold 2,000 units the year it was introduced to put that into perspective the S-Class which it was trying to compete against sold 85,000 units and cost 50% more and had fewer features!
Watered down luxury is grotesque and comsumers agree, no matter how much the wet dreams of Hyundai execs would like to disagree and think they can compete without putting the effort there to get up to speed.
What the result of trying to compete will be AT BEST is that they will become a competent cheap alternative not to the 3 series itself, but to it's own cheap alternatives, ie the G35. The Genesis RK will be to the G35 what the G35 is to the 3er in other words. I say this is the best solution because if they try to shoot any higher they will fall flat on their faces (see the Equus example).
So hopefully they don't shoot as high as they are claiming and create a horrific monstrosity that will never sell. What you can do as a cut rate company like Hyundai is make watered down ultra luxury cars that consumers have spoken and said they feel are grotesque or you can make upper mid level cars which are fully featured. When they develop the economies of scale to make ultra premium cars very efficiently then they will be able to compete.