Brand revival has become a hot trend in the automotive industry, but while European marques like MINI, Maybach, Bugatti and Spyker have returned to the limelight, American automakers have yet to climb on board. According to this Brandjunkie survey conducted by Interbrand's website brandchannel.com, the public most wants to see the retired American auto marques Oldsmobile and Studebaker revived. The gone-but-not-forgotten car brands follow names like Pan Am and Atari on the list, which also happened to include the retired Chrysler division Plymouth.
Elsewhere in the survey, respondents answered that BMW would make a great dinner party guest; Ford and Toyota have made a significant impact on the course of history; GM and Ford deserve a good tongue lashing in an argument; BMW, Toyota, Mercedes or Volkswagen would be good brands to be if one could be a brand; BMW, Mercedes and Toyota inspire people; GM, BMW and Mercedes need to be rebranded; and Toyota, Honda, GM and BMW are truly "green" brands. Outside the auto industry, Apple is apparently the best brand ever created, as it nabbed the No. 1 survey spot in most questions.
In trying to establish a Japanese-market foothold for Lexus, Toyota has seemingly fallen prey to the same tactic that made the Cadillac Cimmaron such a maroon. When trying to launch a brand, especially an upscale brand, it's not advisable to rebadge existing models and crank up the price. It doesn't seem to matter how good the car is, or how swanky the new $10-million-a-pop showroom is, once an Altezza, always an Altezza, and paying 20 percent more for the same car with a different logo is rightfully galling.
Japanese luxury car buyers also have quite a taste for European iron, specifically German cars from the likes of Audi, BMW and Mercedes. Enthusiasts in Toyota's own backyard echo the universal car-guy complaint that Lexus vehicles lack personality. There's no denying that Lexus cars are well-made and capable, and the IS-F may finally infuse the brand with enough attitude to woo buyers of storied marques. Currently, most Lexus buyers in Japan are stepping up from Toyota ownership. Less than 5 percent of sales are conquests, and actual sales have lagged behind projections. Lexus offerings have been expanded from the initial IS, GS, and SC models to include the LS, and the RX will be coming in 2009. While it may appear less than successful so far, Toyota can afford to be patient. American buyers have fully embraced Toyota and Lexus nameplates to the point where they're both smashing successes. In another two to three years, we're betting Lexus will have a cheery song to sing in Japan.
Automakers work very hard at the branding process, which takes years and years of effort to achieve. For instance, when a consumer hears Porsche, he or she likely sthink of sports cars and iconic design principles -- despite the fact that the German brand sells plenty of SUVs, too. And when a brand starts to get a negative image, it can take years to overcome that bad stigma -- just ask Ford. So, with all of this in mind, Kelley Blue Book has announced the winners of its 2008 Brand Image Awards, which are based on consumer perception studies of which KBB keeps track.
The big winners this year are Toyota for "Best Overall Interior Design", BMW for "Best Overall Exterior Design" and Mercedes-Benz for "Best Overall Prestige Brand". We would have expected Audi to do well in the interior design category, but these awards are not based on reality, but perception instead. For a complete run-down of the awards, we've included the press release after the break.
When you've got a name as well established as Jeep, you hardly need to sell vehicles to turn a profit. You can get the Jeep name on all sorts of consumer merchandise, from a butched-up umbrella stroller to clothes and even bedding. There are more licensed products on the way, a few even making some kind of sense to tie into the Jeep brand. You will soon be able to park your Wrangler in a garage painted top to bottom, from walls to slab, with official Jeep colors. Not near home? A Jeep-branded GPS system will soon be out, and if you're not in a hurry to get back, you can stock up on officially-licensed camping gear. All of the tie-ins help sell Jeeps, or at least bolster the brand's visibility – think of it as a sleeper advertising campaign. Jeep fans will buy this stuff, and even non-Jeep owners will recognize the name and the cachet. You can even indoctrinate your kids into the Jeep brand with a vehicle that us grown-ups can't even get yet, the Hurricane. The concept-car-cum-Power-Wheels Hurricane is a hot item at Toys 'R Us, where the vehicle sells. Chrysler employees were recently treated to a display of all Jeep branded products at the company's headquarters. There were hundreds of items bearing the commonly recognized logo, with more in the pipeline. We're holding out for a new Grand Wagoneer, woodgrain ConTac paper on the flanks, and all.
Posted Jul 16th 2007 12:56PM by Noah Joseph Filed under: BMW
BMW is expected to release its new corporate strategy later this year, and when it does, it might include expanding to swallow up some more brands. What those brands might be has not been revealed, although reports indicate that the Bavarian automaker could be looking to take over Volvo cars from Ford's rapidly disintegrating Premium Auto Group, which has also recently shed Aston Martin and may be prepared to offload Jaguar and Land Rover, as well.
Munich has had varied success with expanding its family tree. It's had seven years to recuperate from the Rover Group fiasco, and would evidently be hoping for more success along the lines of its MINI and Rolls Royce ventures.
Do you know where babies cars come from? Anderson Analytics took a survey of 1,000 college students from more than 375 universities and discovered that many of them don't. A third of the respondents thought Lexus was American. More than half of them thought Hyundai was Japanese, and at the same time, two-thirds of them think Korean products are no good. Almost half thought Volvo and Saab were German, and more than half thought Land Rover is American. Which, technically, it is, but probably not in the way they meant it.
The survey, carried out last summer, was actually a study of country-of-origin on brand perception. Carmakers weren't the only ones to suffer from "They don't make that here?" syndrome. Almost no one knew that Nokia is Finnish, and almost everyone thought that Motorola's Japanese. But country origin doesn't have the same effect on brand perception for cell phones that it does on cars. However, how important can it be to make sure people know your car is Swedish if those people can't point Sweden out on a map? Just make sure they don't think it's Korean.
Bandwagons are for jumping on, and this one's carrying laptop computers branded by automakers. Ferrari's was among the first, then Lamborghini jumped on board, and more recently we've seen Koenigsegg and Maybach follow suit. Not to be left out, reports are surfacing that BMW has teamed up with Acer to offer its own range of branded notebook computers.
The partnership seems to be an odd choice, since Acer produces laptops for Ferrari and sponsors their racing team. Reports suggest, however, that the BMW computers will be slotted in below their Ferrari counterparts and sell at lower price points. Based on Acer's Aspire series, the BMW versions will feature extra design features, for which Acer insists the customer will pay no premium.
Buyers will have the choice of Intel Santa Rosa or AMD processors and an optional HD-DVD drive, and the laptops will come complete with all the bells and whistles including 17-inch widescreens, WiFi, surround sound, and HDMI. Instead of offering one or two different models, the information points to a whole range of BMW-Acers that could include as many as 40 different model configurations.
It's been a period of big changes for Fiat's commercial truck division recently. First the brand gained independent incorporation in the restructuring of the Fiat Group, and now the division is getting a new name and image. What was incorporated just a few months ago as Fiat Light Commercial Vehicles is now being re-named Fiat Professional.
Along with the more serious moniker, Fiat Professional is getting a new badge. The logo pictured above is based on the Fiat badge revealed on the new Bravo, spruced up for the commercial division by Robilant Associati, the same marketing consultants that collaborated with the Italian industrial giant on the creation of the new Fiat logo revealed last October.
The name change and new logo aren't likely to change anything concrete for Fiat's light truck and van division, aside from giving it a more professional image with which to stand up to the competition. Nor is the image shift expected to have any implications for Iveco, Fiat's more heavy-duty truck subsidiary.
Hyundai's product line-up has been both steadily improving and moving up-market, first with the launch of the Veracruz luxury SUV and now with the announcement of the upcoming Genesis RWD V8 luxury sedan. The emergence of the premium Hyundais has lead to industry speculation that the burgeoning Korean carmaker could be considering the launch of a separate premium brand to compete with its Japanese rivals.
Although they've far from confirmed any such decision, Hyundai execs have suggested it could be in the cards. Product planning VP John Krafcik was quoted as saying, "We haven't decided that as of yet. Genesis will be sold through our Hyundai dealers as a Hyundai, but we're still in the midst of discussions as to whether or not we should have an alternative distribution channel with a new name. It's still a possibility."
Like Toyota did with Lexus, Nissan with Infiniti and Honda with Acura, a premium marque from Hyundai would give the Korean carmaker the prestige and justification for the higher prices that inevitably come with producing up-market products. While Japan remains on alert from nuclear weapons from North Korea, the real bomb seems to be coming in automotive form from South Korea.
Having unique character might be good for enthusiasts, but it's not so good for the bottom line, and Martin Winterkorn is more concerned about the latter. That's why the CEO of Volkswagen AG is planning on remaking its struggling Seat brand in a new mold.
Although not offered in the North American market, overseas buyers know Seat by the "auto emocion" moniker, positioning the Spanish carmaker as the group's sportier subsidiary offering more aggressive-looking models compared to the more traditional images of the Volkswagen and Skoda divisions (Hmm, sounds like the European version of Pontiac). Unfortunately, that strategy hasn't seemed to pay off for Seat, and to keep it in the black, Winterkorn is ordering a change of strategy that involves appealing to a wider customer base and cutting ten percent of its workforce.
We can't help but wonder what Seat will have to offer if it's brand image is tossed aside. But treading on each other's turf seems to be the strategy du jour at Volkswagen group, where VWs go upmarket to compete with Audis and the corporate structure includes three ultra-premium brands. Whether Winterkorn's strategy pays off remains to be seen.