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My "Beaulieu Encyclopedia Of The Automobile" lists thousands of manufacturers in a two-thousand page, three-volume set. I recognize the names of maybe 250 of them. Of the sixty active brands being sold today, perhaps only half of them are being produced in significant numbers.
So, what then makes a brand worth keeping, and when we talk of 'brand equity', what does that mean? For brands that still have meaningful equity, but are under-performing or dormant, should they be allowed to die, or can they be resurrected? Which brands have the most potential?
Manufacturers have now all but stopped development of internal combustion engines. Current ICE platforms are now being phased out in favour of BEV 'skateboard' designs. With the battery pack making up the floor, and compact motor-generator units in line with the axles, designers have more freedom than ever before. Software, not mechanical elements, contribute the most to driving dynamics. Many of the things that used to define a brand like the engine, gearbox and powertrain are not differentiating anymore. Exhaust note, shifter precision, and acceleration times have given way to connectivity and data services in terms of purchase criteria.
Distribution models are changing, and it is not not necessary, or even desirable, to purchase a car through a car dealership anymore. There are good dealers out there, but most still have an adversarial buying process that, given the choice, customers will avoid.
It seems to me then, that this is a good time to re-think brand portfolios as well as update the purchase process.
Take Stellantis, which is the world's 4th largest manufacturer with 8M vehicles sold annually. Stellantis was formed in 2021 after a merger between Italian-American FCA and the French PSA Group. Together they hold fifteen brands: Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS, Fiat, Jeep, Lancia, Maserati, Opel, Peugeot, Ram and Vauxhall. While many of these nameplates have contributed greatly to the advancement of the automobile, their sales and marketshare have been on a downward trajectory for quite some time.
The Alfa Romeo brand was re-launched in North America with a new business plan and a 400,000 vehicle per year forecast - about 33% more volume than Porsche. Alfa sold 28,000 units in 2021. In 2014, the late Sergio Marchionne confidently predicted Maserati sales at 75,000 per year, but assured everybody that they wouldn't go over that amount to preserve brand exclusivity. Maserati did have one year (2017) at over 50,000 units, but have slipped below 20,000 for the last several years. Lancia's only car is an old hatchback called the Ypsilon, which is sold only in Italy, mostly on incentives - they sold 27,000 of them in 2021. The DS is a premium brand for Citroen and sells in similar (low) numbers.
These are all great brands with a combination of the first supercars (Alfa Romeo 8C), greatest racing victories (Fangio in a Maserati 250F at the Nurburgring in 1957), revolutionary technical advancements (Citroen's front wheel drive Traction Avant and hydro-pneumatic suspension in the DS, Lancia's monocoque construction in the Lamda and V6 engines and rear transaxle in the Aurelia) to name a few. The only problem is that if you are under 50, chances are you probably haven't heard of any of these cars. These brands deserve better.
Porsche wants to convert its dealerships into 'experience centres', and get away from the showrooms looking like parking lots. They want the showrooms divided into modules that will each focus on part of the brand's identity: History, Motorsport, Sustainability, Customization etc. They want the customer to walk in the showroom and be immersed in everything Porsche. And, of course, not feel like they are prey for a bunch of desperate salesmen.
I think what Stellantis should do is come up with a couple versatile hybrid and BEV platforms, and use them as a basis for re-invigorating each of these brands. Then house them under one roof as experience centres, similar to what Porsche wants to do.
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