The subject of should models become brands has been relevant and important lately. I have had conversations with family and friends about the subject since some have texted me wondering why certain car manufacturers are doing certain business decisions. So, here is my take on should car models become brands.
In 2009, Dodge/Chrysler/Daimler/FCA split off the Ram pickup truck from Dodge and created their own brand from that model. That has been a very successful decision. Hyundai has split Genesis off into its own luxury brand, copying a page from Lexus, Acura, and Infiniti recipe, but also making a brand from a model. Chevrolet has rumored that they might consider making the Corvette a brand in itself. Manufacturers have split models into brands in the past, some have success and some were a failure.
Now, Ford wants to make a Mustang a brand, starting with the all-electric SUV, the Mach E. There is also a rumor that they want to make the Bronco a brand as well. Although, what doesn’t make sense is how they use the Raptor nameplate. They utilize that name for the F-150 Raptor, and Ranger Raptor, but apparently that name will not be utilized to distinguish a more powerful Bronco. A beefy Bronco is rumored to be called a Warthog. Confusing, but whatever.
What Ford should learn though, is they have almost been in this situation before. They had Mercury, that they closed because they couldn’t seem to explain to buyers why they should pay more for a car that is identical to the Ford equivalent. Lincoln almost had the same fate. Hopefully, they have learned from those experiences and don’t mess up a new Mustang or Bronco brand. Toyota and Subaru are also the same boat. They had the Toyota 86, the Subaru BRZ, and the Scion FRS all on the market at one time. And now they are almost doing the same thing, but instead of the Scion available, the Supra has taken that slot. We will have to see how this goes.
I wouldn’t be surprised if Nissan does this with their Z car. Especially with the launch of the new 400Z. The Z name is known by people both with and without automotive knowledge so that would be a good start for them.
What do you think? Should auto manufacturers start making separate brands from their successful models?