The New Grandeur and the third generation of the Mitsubishi Debonair were the products of a joint development between Hyundai and Mitsubishi Motors. Mitsubishi was responsible for the powertrain, and Hyundai was responsible for the body and trim design. Production of the car began in September 1992 and ended in 1998.
The "New Grandeur" came in various trim levels and 4 engine variations (4-cylinder 2.0L and three V6 engines (2.5L, 3L, and 3.5L). The Korea based Hyundai's Grandeur became a huge success following the first generation Grandeur it replaced. However, the same model Mitsubishi marketed in Japan was perfunctory eventually leading Mitsubishi to end the product earlier than expected.
The 3-liter and 3.5-liter engines developed by Mitsubishi were substantial legacies to Hyundai, which at the time did not have the ability to manufacture large displacement engines on its own. Although Debonair's failure in Japan, the Hyundai-Mitsubishi tie further lead to the production of Hyundai Equus / Mitsubishi Dignity premium flagship sedan. Since the production of Hyundai Equus, Hyundai develops all the engines in its product line on its own such as the industry-acclaimed 4.6-liter Tau Engine featured on the Hyundai Genesis
Although it was not exported outside the home market, the second generation Grandeur was success in Korean domestic market as the flagship sedan of Hyundai lineup. This model became a status symbol in Korea, which many politicians and wealthy business executives have used.
The Grandeur XG was a mid-size luxury car. In some other markets, namely North America, it was called the Hyundai XG. It shared a platform and engines with the Kia Amanti. After their huge success with the Grandeur, Hyundai decided to develop the next generation Grandeur on their own from the ground up with the technology they have accumulated through the past Grandeur generations. This allowed Hyundai to export the XG outside South Korea without any possible legal issues.