Badge Engineering

In the automotive industry, rebadging is a form of market segmentation used by automobile manufacturers around the world. To allow for product differentiation without designing or engineering a new model or brand (at high cost or risk), a manufacturer creates a distinct automobile by applying a new "badge" or trademark (brand, logo, or manufacturer's name/make/marque) to an existing product line.

Rebadging is also known as '' rebranding'' and ''badge engineering''; the latter is an intentionally ironic misnomer, in that little or no actual engineering takes place. The term originated with the practice of replacing an automobile's emblems to create an ostensibly new model sold by a different maker. Changes may be confined to swapping badges and emblems, or may encompass minor styling differences, as with cosmetic changes to headlights, taillights, front and rear fascias and outer body skins. More extreme examples involve differing engines and drivetrains. The objective is "to spread the huge development costs of a new vehicle over as many cars as possible." An example is General Motors' rebadging of the Camaro as the Firebird, a successful model from the 1970s through to the 2000s. In most cases, consumers are interested on each brand's focus "on the unique elements of styling and driving characteristics." Some cars would not be marketed without the cost savings that are obtained from this practice and carmakers can develop many "different models – all wearing different badges – off the one platform."

In several countries including Japan, manufacturers often use the phrase " OEM supply" or "OEM-supplied" to denote vehicles that is a rebadged model from or for other manufacturer.

Although platform sharing can often involve rebadging and rebranding, it can also extend further, as the design may be used across multiple configurations. For example, a single platform may underpin a sedan, hatchback, or SUV/CUV body designs.

Automotive industry rebadging can be compared with white-label products in other consumer goods industries, such as consumer electronics and power tools.

History

The first case of badge engineering appeared in 1917 with the Texan automobile assembled in Fort Worth, Texas, that made use of Elcar bodies made in Elkhart, Indiana.

"Probably the industry's first example of one car becoming another" occurred in 1926 when Nash Motors' newly introduced smaller-sized Ajax models were discontinued in 1926 after over 22,000 Ajax cars were sold during the brand's inaugural year. The chairman and CEO of the company, Charles W. Nash, ordered that the Ajax models be marketed as the "Nash Light Six", Nash being a known and respected automobile brand. Production was stopped for two days so Nash emblems, hubcaps and radiator shells could be exchanged on all unshipped Ajax cars. Conversion kits were also distributed at no charge to Ajax owners to transform their cars and protect the investment they had made in purchasing an automobile made by Nash.

File:1925 Nash automobile.JPG, 1925 Nash
File:1926 Ajax 4-door built by Nash at 2014 Gettysburg AACA meet-01.jpg, 1926 Ajax

Starting with the beginning of General Motors in 1909, chassis and platforms were shared with all brands. GMC, which historically was a truck builder, began to offer its products branded as Chevrolet, and vehicles produced by GM were built on common platforms shared with Chevrolet, Oakland, Oldsmobile, Buick, and Cadillac. Exterior appearances were gradually upgraded between these vehicle brands. This was partly due to the fact that all bodywork was provided by Fisher Body which was bought by GM in 1925 and the introduction of the Art and Color Section in 1928 directed by Harley Earl. For 1958, GM was promoting their fiftieth year of production, and introduced anniversary models for each brand; Cadillac, Buick, Oldsmobile, Pontiac, and Chevrolet. The 1958 models shared an almost identical appearance on all models for each brand, and made special luxury models with a shared appearance; Cadillac Eldorado Seville, Buick Limited Riviera, Oldsmobile Starfire 98, Pontiac Bonneville Catalina, and the Chevrolet Bel-Air Impala.

A later example was Wolseley Motors after it was bought out by William Morris. After World War I, "Wolseley started to lose its identity and eventually succumbed to badge engineering." This was repeated with the consolidation of Austin Motor Company and the Nuffield Organization (parent company of Morris Motors) to form the British Motor Corporation (BMC). The rationalization of production to gain efficiencies "did not extend to marketing" and each "model was adapted, by variation in trim and accessories, to appeal to customer loyalties for whom the badge denoting the company of origin was an important selling advantage ... 'Badge Engineering', as it became known, was symptomatic of a policy of sales competition between the constituent organizations." The ultimate example of BMC badge engineering was the 1962 BMC ADO16 which was available badged as a Morris, MG, Austin, Wolseley, Riley and the upmarket Vanden Plas. A year earlier the Mini was also available as Austin, Morris, Riley, and Wolseley - the latter two having slightly bigger boots.

Examples

Regional brands

Badge engineering often occurs when an individual manufacturer (such as the regional Big Threes of the United States, Europe, and Japan) owns a portfolio of different brands and markets the same car under different brands and nameplates. The practice is used for multiple reasons. In one example, a company may do so to expand its range of different brands in a market without the cost of developing completely new models. In the United States, General Motors may sell a car through each of its brands; for example, the Chevrolet Tahoe, GMC Yukon, and Cadillac Escalade each share a common body.

In another example, the same model is rebadged when it is sold in different regions and markets. In Australia, during the 1980s and 1990s, the Button car plan required imported Nissans and Toyotas to adopt Ford and Holden (GM) nameplates. In the United Kingdom, Opel-produced vehicles are marketed under the Vauxhall brand; when sold in the United States, Opels were marketed as Saturns, Chevrolets, and Buicks. Conversely, the Australian Holden brand was never sold in North America, but the Holden Monaro and Holden Commodore were sold under the Pontiac (Pontiac GTO, Pontiac G8), Chevrolet (Chevrolet SS), and Buick (Buick Regal Sportback/Buick Regal TourX) nameplates.

Brand expansion

Another way badge engineering may occur is when two separate manufacturers trade products, thereby filling gaps in their respective product lineups. During the 1990s, Honda and Isuzu entered into such an agreement, with Isuzu marketing the first-generation Honda Odyssey as the Isuzu Oasis as its first minivan. In return, Honda received the Isuzu Rodeo and Isuzu Trooper SUVs, which became the Honda Passport and Acura SLX; the agreement allowed both Honda and Isuzu to enter new vehicle segments without the cost of engineering an all-new vehicle design (at the same time, in Europe, the Honda Crossroad was a rebadged Land Rover Discovery).

During the late 2000s and early 2010s, the Volkswagen Routan was a rebranded version of the Dodge Grand Caravan, supplied as Volkswagen sought to re-enter the North American minivan segment without the investment of federalizing its own design. Assembled by Chrysler with a Chrysler powertrain, the Routan received its own styling and content features as well as a standard "sportier suspension and steering."

Distribution networks (Japan)

In Japan, automobile manufacturers differed in the marketing of their product ranges. In contrast to marketing a single vehicle under multiple brand names (with minor changes to exterior bodywork), Japanese manufacturers marketed vehicles through multiple sales networks, with a distinct vehicle being sold under multiple model nameplates (from a single manufacturer).

Toyota marketed the Corolla

HOME


Content is Copyleft
Website design, code, and AI is Copyrighted (c) 2014-2017 by Stephen Payne


Consider donating to Wikimedia



As an Amazon Associate I earn from qualifying purchases