Badge engineering
Encyclopedia
Badge engineering is an ironic term that describes the rebadging (that is, the replacement of the branding trademark) of one product (especially automobile
s) as another. Due to the high cost of designing and engineering a totally new model, or establishing a new brand (which may take many years to gain acceptance), it is often more cost-effective to rebadge a single product multiple times.
The term derives from the trademark emblems fastened inside or onto the outside of the car. While differences were originally confined to the badges used on the model, more typically it involves slight styling differences, usually limited to the headlights, tail lights, and front and rear fascias
. More extreme examples involve differing engines
and drivetrains
.
Badge engineering is now common, but it should not be confused with platform sharing within a company. Platform sharing is different from rebadging, as an automobile platform may be used in many different ways and applications, such as using a single platform to produce and sell a sedan and a sport utility vehicle
. Two such products are different vehicles, whereas badge engineering involves the sale of essentially a single vehicle.
' newly introduced smaller-sized Ajax models were discontinued in 1926 after over 22,000 Ajax cars were sold during the brand's inaugural year. Charles Warren Nash ordered that the Ajax models be marketed as the "Nash Light Six", a known and respected automobile brand that was the name of the company's founder. 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 protect the investment they had made in purchasing an automobile made by Nash.
A later example was the Wolseley Motor Company
after it was bought out by William Morris, 1st Viscount Nuffield
. After World War I
the "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 Organisation
(parent company of Morris) to form the British Motor Corporation
. 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."
s, and markets the same car under a different brand. It may be done to expand the ranges of different brands in one market without developing completely new models, such as selling one car as a Chevrolet
, a Pontiac
, and a Saturn by GM in the United States
. It may also be done to sell the same model in different regions and markets simply under a different name. For example, cars built by Daewoo
, now owned by GM, are now only badged as Daewoos in South Korea
and Vietnam
. In other markets, they are now badged as Chevrolet
s. Similarly, in Australia
and New Zealand
, where Daewoo was unsuccessful, they are now rebadged as Holden
models. The Australian car manufacturing industry experienced major badge reengineering during the 1980s and 1990s as part of the failed Button car plan
.
Another way badge engineering may occur is when two separate companies trade off products that each brand lacks in its lineup. A prime example of this would be the first-generation Honda Odyssey
being rebadged as an Isuzu Oasis
because Isuzu
needed a minivan, while the Isuzu Rodeo was rebadged as the Honda Passport
because Honda
had the need for an SUV.
Badge engineering may occur when one company allows another, otherwise unaffiliated, company to market a revised version of their product, as with Volkswagen
marketing a re-skinned version of the Dodge Caravan
or Chrysler Town and Country
as the Volkswagen Routan
.
Two different automakers can also pool resources by operating a joint venture to create a product, then selling it each as their own. For instance, General Motors
and Toyota formed NUMMI
. The vehicles produced from this venture (though not necessarily at NUMMI itself) included the Toyota Corolla
/Chevrolet Prizm, and later the Toyota Matrix
/Pontiac Vibe
.
Another example was the cooperative work between Volkswagen
and Ford to create the VW Sharan
, Ford Galaxy
and SEAT Alhambra
.
Language
problems or marketing
decisions may lead to a car being given a different model name in a certain country, although this may not constitute badge engineering as the car is still sold under the same brand name. For example, the Mitsubishi Pajero
is called the Shogun in the UK and the Montero in Spanish-speaking
countries and North America
, because pajero means wanker in Castilian Spanish
. The Buick LaCrosse
was sold as the Buick Allure in Canada, as la crosse means masturbation
or swindling in Québécois slang. The Volkswagen Santana
was sold as Passat in the US, and as Corsar in Mexico, because its name brought to mind the infamous general Antonio López de Santa Anna
.
and drivetrains
.
An example of this is the Ford Motor Company
taking its well known family sedan Ford Taurus
, and selling it as the Mercury Sable
, or a Ford Expedition
being sold as the Lincoln Navigator
. Another example is General Motors
with its rebadged version of the Chevrolet Suburban
, Tahoe
as the Cadillac Escalade
, and their rebadged version of the GMC Acadia
and Saturn Outlook
, the Buick Enclave
. Buick
and Oldsmobile
were frequently considered GM's upmarket brands compared to Chevrolet
and Pontiac
, while Cadillac
was considered the luxury brand.
Probably the most renowned example is Audi
, a brand within the Volkswagen Group
. While very few cars share the same bodywork, nearly all Audis use components from their more pedestrian counterparts, sold as Volkswagen Group's mass market brands. Although this has been a practice when Volkswagen first acquired Audi in 1964, through the last fifteen years the brand was shifted more up-market to compete with more luxurious Mercedes-Benz
and BMW
. As an effort to place Audi as a premium marque, Volkswagen frequently introduces new technologies in Audi-branded cars before fitting them to more mainstream products (such as Direct-Shift Gearbox
).
Japanese carmakers have followed this practice of rebadging as well, such as Honda
's Acura
line, Nissan's Infiniti
brand, and Toyota's Lexus
marque, as the entry-level luxury models were based on their mainstream lineup. For example, the Lexus ES
shares the same drivetrain and is based on the same platform as the Toyota Camry
; the Lexus LX
is an upgraded rebadge of the Toyota Land Cruiser
, and the Acura TSX
is a rebadge of the JDM Honda Accord
.
Ruf Automobile manufacturing cars using badge engineering method, but their method is very unique compared to usual badge engineering methods. They build cars using their own-made parts instead of simply putting the badge. Examples of cars building in this method are CTR Yellowbird
, CTR2
, RGT
and eRuf Model A
, which are based on different generations of Porsche 911 series.
brand sold by Chrysler
is often attributed to it being crowded out by the company's other more established divisions and the failure to effectively incorporate the new marque into Chrysler's dealer network.
Origins of General Motors' badge engineering dates back to the early 1970s when the Chevrolet Nova
compact was rebadged by the upscale Buick Apollo (Skylark after 1975), Oldsmobile (Omega), and Pontiac (Ventura II and Phoenix) divisions as entry-level cars. By the late 1970s, GM's downsized B, C, and D platform cars set the standard of the inevitable when badge engineering and platform sharing were fused together as a means to trim excess production expenditures - similar-looking bodystyles with distinctive appearances which was a trend throughout the 1980s. This trend continued with subsequent platforms from the J-car to its redesigned FWD full-size sedans. The ill-received Cadillac Cimarron
is one of the most widely-cited examples of problems with badge engineering. The car was essentially identical to the Chevrolet Cavalier
save for cosmetic differences, which resulted in poor sales, as the company found few buyers willing to pay nearly twice as much for a car that offered little more than the Cavalier. This resulted in damage to the Cadillac brand image. Other manufacturers have giving badge engineered cars the distinct branding and style, high-quality interior materials, wide range of convenience features, and performance powertrains, as these are key to distinguishing them from mass market equivalents and making these appeal to consumers; successful luxury cars following this formula include the Lexus ES
, Acura TL
, and Audi A3
.
The Lincoln Navigator
, derived from the Ford Expedition
, proved very successful. However, the Ford Explorer
-based Lincoln Aviator
failed. The fact that the Aviator was virtually identical to the Navigator in all regards but size made it difficult to generate attention among potential buyers, and the Mercury Mountaineer
had already proved sufficient to cater to buyers wanting a slightly more upscale alternative to the Explorer.
As the U.S. auto industry continues to flounder, discontinuing or merging one or more brand divisions has been floated as a cost-cutting idea the Big Three could implement. Some in the industry had, for example, suggested that General Motors
discontinue its Buick
and/or Pontiac
lines (which was done earlier when the Oldsmobile
brand was discontinued in 2004), and that Ford
sell its Volvo
division, which was previously a separate carmaker in its own right. GM phased out the Pontiac brand in October 2010, while Ford in March 2010 sold Volvo to the Chinese manufacturer Geely Automobile
(after it had sold its other luxury brands of Jaguar, Land Rover
, and Aston Martin
). Its Mercury
brand was phased out in December 2010.
In Indonesia
, the Timor, derived from the South Korea
n Mazda 323-based Kia Sephia
, proved very controversial. The fact that the Timor was not assembled in Indonesia, rather, it was imported completely built-up, stirred up annoyance among car companies, especially Toyota, which were producing many vehicles in the country.
, which was license-built in Iran
as the iconic Paykan
, as well as Naza
, building vehicles under license from Kia
and Peugeot
(Naza 206 Bestari).
Automobile
An automobile, autocar, motor car or car is a wheeled motor vehicle used for transporting passengers, which also carries its own engine or motor...
s) as another. Due to the high cost of designing and engineering a totally new model, or establishing a new brand (which may take many years to gain acceptance), it is often more cost-effective to rebadge a single product multiple times.
The term derives from the trademark emblems fastened inside or onto the outside of the car. While differences were originally confined to the badges used on the model, more typically it involves slight styling differences, usually limited to the headlights, tail lights, and front and rear fascias
Fascia (car)
Confusingly, fascia is used for several different things in the automotive world. Many of these meanings are related to the appearance of the car....
. More extreme examples involve differing engines
Internal combustion engine
The internal combustion engine is an engine in which the combustion of a fuel occurs with an oxidizer in a combustion chamber. In an internal combustion engine, the expansion of the high-temperature and high -pressure gases produced by combustion apply direct force to some component of the engine...
and drivetrains
Powertrain
In a motor vehicle, the term powertrain or powerplant refers to the group of components that generate power and deliver it to the road surface, water, or air. This includes the engine, transmission, drive shafts, differentials, and the final drive...
.
Badge engineering is now common, but it should not be confused with platform sharing within a company. Platform sharing is different from rebadging, as an automobile platform may be used in many different ways and applications, such as using a single platform to produce and sell a sedan and a sport utility vehicle
Sport utility vehicle
A sport utility vehicle is a generic marketing term for a vehicle similar to a station wagon, but built on a light-truck chassis. It is usually equipped with four-wheel drive for on- or off-road ability, and with some pretension or ability to be used as an off-road vehicle. Not all four-wheel...
. Two such products are different vehicles, whereas badge engineering involves the sale of essentially a single vehicle.
History
"Probably the industry's first example of one car becoming another" occurred in 1926 when Nash MotorsNash Motors
Also see: Kelvinator and American Motors CorporationNash Motors was an automobile manufacturer based in Kenosha, Wisconsin, in the United States from 1916 to 1938. From 1938 to 1954, Nash was the automotive division of the Nash-Kelvinator Corporation...
' newly introduced smaller-sized Ajax models were discontinued in 1926 after over 22,000 Ajax cars were sold during the brand's inaugural year. Charles Warren Nash ordered that the Ajax models be marketed as the "Nash Light Six", a known and respected automobile brand that was the name of the company's founder. 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 protect the investment they had made in purchasing an automobile made by Nash.
A later example was the Wolseley Motor Company
Wolseley Motor Company
The Wolseley Motor Company was a British automobile manufacturer founded in 1901. After 1935 it was incorporated into larger companies but the Wolseley name remained as an upmarket marque until 1975.-History:...
after it was bought out by William Morris, 1st Viscount Nuffield
William Morris, 1st Viscount Nuffield
William Richard Morris, 1st Viscount Nuffield GBE, CH , known as Sir William Morris, Bt, between 1929 and 1934 and as The Lord Nuffield between 1934 and 1938, was a British motor manufacturer and philanthropist...
. After World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
the "Wolseley started to lose its identity and eventually succumbed to badge engineering." This was repeated with the consolidation of Austin Motor Company
Austin Motor Company
The Austin Motor Company was a British manufacturer of automobiles. The company was founded in 1905 and merged in 1952 into the British Motor Corporation Ltd. The marque Austin was used until 1987...
and the Nuffield Organisation
Nuffield Organisation
The Nuffield Organisation was a vehicle manufacturing company in the United Kingdom. Named after its founder, William Morris, 1st Viscount Nuffield, it was formed in 1938 as the merger of Nuffield's Morris Motor Company , another of Nuffield's companies the MG Car Company and Riley.Morris Motors...
(parent company of Morris) to form the British Motor Corporation
British Motor Corporation
The British Motor Corporation, or commonly known as BMC was a vehicle manufacturer from United Kingdom, formed by the merger of the Austin Motor Company and the Nuffield Organisation in 1952...
. The rationalization
Rationalization (economics)
In economics, rationalization is an attempt to change a pre-existing ad hoc workflow into one that is based on a set of published rules. There is a tendency in modern times to quantify experience, knowledge, and work. Means-end rationality is used to precisely calculate that which is necessary to...
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."
Different types
Badge engineering often occurs when an individual manufacturer, such as General Motors, owns a portfolio of different brandBrand
The American Marketing Association defines a brand as a "Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers."...
s, and markets the same car under a different brand. It may be done to expand the ranges of different brands in one market without developing completely new models, such as selling one car as a Chevrolet
Chevrolet
Chevrolet , also known as Chevy , is a brand of vehicle produced by General Motors Company . Founded by Louis Chevrolet and ousted GM founder William C. Durant on November 3, 1911, General Motors acquired Chevrolet in 1918...
, a Pontiac
Pontiac
Pontiac was an automobile brand that was established in 1926 as a companion make for General Motors' Oakland. Quickly overtaking its parent in popularity, it supplanted the Oakland brand entirely by 1933 and, for most of its life, became a companion make for Chevrolet. Pontiac was sold in the...
, and a Saturn by GM in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. It may also be done to sell the same model in different regions and markets simply under a different name. For example, cars built by Daewoo
GM Daewoo
GM Korea Company is South Korea's second largest automobile manufacturer and is a division of the General Motors Company. GM Korea's roots go back to the former Daewoo which was split from its parent company, Daewoo Group, in 2001...
, now owned by GM, are now only badged as Daewoos in South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
and Vietnam
Vietnam
Vietnam – sometimes spelled Viet Nam , officially the Socialist Republic of Vietnam – is the easternmost country on the Indochina Peninsula in Southeast Asia. It is bordered by China to the north, Laos to the northwest, Cambodia to the southwest, and the South China Sea –...
. In other markets, they are now badged as Chevrolet
Chevrolet
Chevrolet , also known as Chevy , is a brand of vehicle produced by General Motors Company . Founded by Louis Chevrolet and ousted GM founder William C. Durant on November 3, 1911, General Motors acquired Chevrolet in 1918...
s. Similarly, in Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
and New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
, where Daewoo was unsuccessful, they are now rebadged as Holden
Holden
GM Holden Ltd is an automaker that operates in Australia, based in Port Melbourne, Victoria. The company was founded in 1856 as a saddlery manufacturer. In 1908 it moved into the automotive field, before becoming a subsidiary of the U.S.-based General Motors in 1931...
models. The Australian car manufacturing industry experienced major badge reengineering during the 1980s and 1990s as part of the failed Button car plan
Button car plan
The Button car plan, also known as the Button plan was the informal name given to the Motor Industry Development Plan. The plan was an Australian federal government initiative, intended to rationalise the Australian motor vehicle industry. Industry consultation had begun in 1984 with a proposed...
.
Another way badge engineering may occur is when two separate companies trade off products that each brand lacks in its lineup. A prime example of this would be the first-generation Honda Odyssey
Honda Odyssey (North America)
The Honda Odyssey is a minivan manufactured by Japanese automaker Honda since 1994.The Odyssey had originally been conceived and engineered in Japan, in the wake of country's economic crisis of the 1990s – which in turn imposed severe constraints on the vehicle's size and overall concept,...
being rebadged as an Isuzu Oasis
Isuzu Oasis
The Isuzu Oasis was a minivan produced as result of an agreement between Isuzu and Honda from 1996 to 1999. It was the only minivan sold by Isuzu....
because Isuzu
Isuzu
, is a Japanese car, commercial vehicle and heavy truck manufacturing company, headquartered in Tokyo. In 2005, Isuzu became the world's largest manufacturer of medium to heavy duty trucks. It has assembly and manufacturing plants in the Japanese city of Fujisawa, as well as in the prefectures...
needed a minivan, while the Isuzu Rodeo was rebadged as the Honda Passport
Honda Passport
The Honda Passport was a compact SUV produced by Isuzu, released in 1994, as Honda's first entry in the truck market for the United States. Built and designed solely by Isuzu, who sold it as the Rodeo, it was seen as a "quick fix" entry into the growing SUV market in the United States...
because Honda
Honda
is a Japanese public multinational corporation primarily known as a manufacturer of automobiles and motorcycles.Honda has been the world's largest motorcycle manufacturer since 1959, as well as the world's largest manufacturer of internal combustion engines measured by volume, producing more than...
had the need for an SUV.
Badge engineering may occur when one company allows another, otherwise unaffiliated, company to market a revised version of their product, as with Volkswagen
Volkswagen
Volkswagen is a German automobile manufacturer and is the original and biggest-selling marque of the Volkswagen Group, which now also owns the Audi, Bentley, Bugatti, Lamborghini, SEAT, and Škoda marques and the truck manufacturer Scania.Volkswagen means "people's car" in German, where it is...
marketing a re-skinned version of the Dodge Caravan
Dodge Caravan
The Dodge Caravan is a family minivan manufactured by Chrysler Group LLC and sold under its Dodge brand. Along with its nameplate variant, the Plymouth Voyager, the Caravan was introduced for the 1984 model year. In 1987, the Dodge Grand Caravan long-wheelbase model was introduced and sold...
or Chrysler Town and Country
Chrysler Town and Country
The first Chrysler Town & Country minivan was introduced in 1989 alongside the Plymouth Voyager and Dodge Caravan. Sharing the body of the long-wheelbase Grand Voyager/Grand Caravan's Chrysler S platform, the Town & Country was externally distinguished by its chrome waterfall grille, crystal...
as the Volkswagen Routan
Volkswagen Routan
The Volkswagen Routan is a seven-seat minivan and rebadged variant of the Chrysler RT platform, with revised styling, content features, and suspension tuning from the fifth-generation Dodge Grand Caravan and Chrysler Town & Country....
.
Two different automakers can also pool resources by operating a joint venture to create a product, then selling it each as their own. For instance, General Motors
General Motors
General Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...
and Toyota formed NUMMI
NUMMI
New United Motor Manufacturing, Inc. was an automobile manufacturing plant in Fremont, California, opened in 1984 and closed in 2010. On October 27, 2010 it reopened as a 100% Tesla Motors-owned production facility, known as the Tesla Factory...
. The vehicles produced from this venture (though not necessarily at NUMMI itself) included the Toyota Corolla
Toyota Corolla
The Toyota Corolla is a line of subcompact and compact cars manufactured by the Japanese automaker Toyota, which has become very popular throughout the world since the nameplate was first introduced in 1966. In 1997, the Corolla became the best selling nameplate in the world, with over 35 million...
/Chevrolet Prizm, and later the Toyota Matrix
Toyota Matrix
The Toyota Matrix, sometimes officially referred to as the Toyota Corolla Matrix, is a compact hatchback manufactured by the Toyota Motor Corporation in Canada, to be sold in the United States, Canada, and Mexico...
/Pontiac Vibe
Pontiac Vibe
The Pontiac Vibe is a compact hatchback car that was produced in Fremont, California, in the United States by NUMMI , a joint venture between General Motors and Toyota, and marketed under General Motors' Pontiac brand...
.
Another example was the cooperative work between Volkswagen
Volkswagen
Volkswagen is a German automobile manufacturer and is the original and biggest-selling marque of the Volkswagen Group, which now also owns the Audi, Bentley, Bugatti, Lamborghini, SEAT, and Škoda marques and the truck manufacturer Scania.Volkswagen means "people's car" in German, where it is...
and Ford to create the VW Sharan
Volkswagen Sharan
The Volkswagen Sharan is a large MPV produced by the German automaker Volkswagen since 1995.-First generation :The name Sharan is derived from a Persian word meaning "Carrier of Kings"....
, Ford Galaxy
Ford Galaxy
The first Galaxy was designed as a joint venture product between Ford and the Volkswagen Group. Produced at the joint-venture AutoEuropa plant in Palmela, Portugal, the vehicle was badge-engineered to create three vehicles: the Ford Galaxy; by Volkswagen Passenger Cars as the Volkswagen Sharan;...
and SEAT Alhambra
SEAT Alhambra
The SEAT Alhambra is a large 7-seat MPV by the Volkswagen Group, sold under the SEAT brand.The Alhambra already spans two generations since 1996, and both of them are built at the AutoEuropa plant in Palmela, Portugal...
.
Language
Language
Language may refer either to the specifically human capacity for acquiring and using complex systems of communication, or to a specific instance of such a system of complex communication...
problems or marketing
Marketing
Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...
decisions may lead to a car being given a different model name in a certain country, although this may not constitute badge engineering as the car is still sold under the same brand name. For example, the Mitsubishi Pajero
Mitsubishi Pajero
The Mitsubishi Pajero is a sport utility vehicle manufactured by Mitsubishi Motors. It was named after Leopardus pajeros, the Pampas Cat which is native to the Patagonia plateau region of southern Argentina. However, since pajero is an offensive term for "wanker" in Spanish, alternative names have...
is called the Shogun in the UK and the Montero in Spanish-speaking
Spanish language
Spanish , also known as Castilian , is a Romance language in the Ibero-Romance group that evolved from several languages and dialects in central-northern Iberia around the 9th century and gradually spread with the expansion of the Kingdom of Castile into central and southern Iberia during the...
countries and North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...
, because pajero means wanker in Castilian Spanish
Castilian Spanish
Castilian Spanish is a term related to the Spanish language, but its exact meaning can vary even in that language. In English Castilian Spanish usually refers to the variety of European Spanish spoken in north and central Spain or as the language standard for radio and TV speakers...
. The Buick LaCrosse
Buick LaCrosse
The Buick LaCrosse is a mid-size entry-level luxury sedan produced by General Motors. It replaced the Buick Century and Regal in North America beginning in the 2005 model year.-North America:...
was sold as the Buick Allure in Canada, as la crosse means masturbation
Masturbation
Masturbation refers to sexual stimulation of a person's own genitals, usually to the point of orgasm. The stimulation can be performed manually, by use of objects or tools, or by some combination of these methods. Masturbation is a common form of autoeroticism...
or swindling in Québécois slang. The Volkswagen Santana
Volkswagen Santana
The Volkswagen Santana is a three-box sedan, based on the second generation Volkswagen Passat . It was first introduced in 1981 and is scheduled to remain in production until 2012....
was sold as Passat in the US, and as Corsar in Mexico, because its name brought to mind the infamous general Antonio López de Santa Anna
Antonio López de Santa Anna
Antonio de Padua María Severino López de Santa Anna y Pérez de Lebrón , often known as Santa Anna or López de Santa Anna, known as "the Napoleon of the West," was a Mexican political leader, general, and president who greatly influenced early Mexican and Spanish politics and government...
.
Luxury vehicles
Badge engineering occurs in the luxury-type market segments. An automobile manufacturer will use a model from its mainstream brand, upgrade it with more features, technology, luxury and/or style, then market it as a more expensive model under a premium marque. The luxury models may have more than just cosmetic differences; they may receive improved enginesInternal combustion engine
The internal combustion engine is an engine in which the combustion of a fuel occurs with an oxidizer in a combustion chamber. In an internal combustion engine, the expansion of the high-temperature and high -pressure gases produced by combustion apply direct force to some component of the engine...
and drivetrains
Powertrain
In a motor vehicle, the term powertrain or powerplant refers to the group of components that generate power and deliver it to the road surface, water, or air. This includes the engine, transmission, drive shafts, differentials, and the final drive...
.
An example of this is the Ford Motor Company
Ford Motor Company
Ford Motor Company is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK...
taking its well known family sedan Ford Taurus
Ford Taurus
The Ford Taurus is an automobile manufactured by the Ford Motor Company in the United States. Originally introduced in the 1986 model year, it has remained in near-continuous production for more than two decades, making it the fourth oldest nameplate that is currently sold in the North American...
, and selling it as the Mercury Sable
Mercury Sable
The Sable was a very important sedan for both Mercury and the American auto industry.Ford had lagged in introducing mid-size front wheel drive cars to compete against General Motors' Chevrolet Citation and its best-selling Chevrolet Celebrity/Pontiac 6000/Oldsmobile Cutlass/Buick Century quartet as...
, or a Ford Expedition
Ford Expedition
The Ford Expedition is a full-size SUV built by the Ford Motor Company. Introduced in 1997 as a replacement to the Ford Bronco, it was previously slotted between the smaller Ford Explorer and the larger Ford Excursion, but as of the 2005 model year, it is Ford's largest and last truck-based,...
being sold as the Lincoln Navigator
Lincoln Navigator
The Lincoln Navigator is a full-size luxury SUV built by the Ford Motor Company for its luxury division, Lincoln. Introduced as a 1998 model, production began May 14, 1997 with sales beginning in August. The Navigator was Lincoln's first SUV as well as its first four-wheel drive capable vehicle...
. Another example is General Motors
General Motors
General Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...
with its rebadged version of the Chevrolet Suburban
Chevrolet Suburban
Chevrolet offered a station wagon body, built on the 1/2 ton truck frame. This model was specifically built for National Guard units and Civilian Conservation Corps units. Much of the body was constructed from wood, and could seat up to eight occupants....
, Tahoe
Chevrolet Tahoe
The Chevrolet Tahoe are full-size SUVs from General Motors. Chevrolet and GMC sold two different-sized SUVs under their Blazer/Jimmy model names through the early 1990s. This situation changed when GMC rebadged the full-size Jimmy as the Yukon in 1992...
as the Cadillac Escalade
Cadillac Escalade
The Cadillac Escalade is a full-size luxury sport utility vehicle sold by the General Motors luxury brand, Cadillac. It was the division's first major entry into the popular SUV market. The Escalade was introduced for the 1999 model year in response to German and Japanese competitors and to Ford's...
, and their rebadged version of the GMC Acadia
GMC Acadia
The GMC Acadia is a full-size crossover SUV from GM. The GMC Acadia, Chevrolet Traverse, Buick Enclave and Saturn Outlook share the new GM Lambda platform. The Acadia went on sale in the United States in December 2006, and in Canada in January, 2007...
and Saturn Outlook
Saturn Outlook
The Saturn Outlook is a crossover SUV that debuted at the New York International Auto Show, and is based on the new GM Lambda platform, which it shares with the Buick Enclave, Chevrolet Traverse and GMC Acadia...
, the Buick Enclave
Buick Enclave
The Buick Enclave is a full-size crossover SUV launched in May 2007 as a 2008 model by the Buick division of General Motors. The Buick Enclave, GMC Acadia, Chevrolet Traverse, and Saturn Outlook all share the GM Lambda platform. The Enclave was previewed at the 2006 North American International...
. Buick
Buick
Buick is a premium brand of General Motors . Buick models are sold in the United States, Canada, Mexico, China, Taiwan, and Israel, with China being its largest market. Buick holds the distinction as the oldest active American make...
and Oldsmobile
Oldsmobile
Oldsmobile was a brand of American automobile produced for most of its existence by General Motors. It was founded by Ransom E. Olds in 1897. In its 107-year history, it produced 35.2 million cars, including at least 14 million built at its Lansing, Michigan factory...
were frequently considered GM's upmarket brands compared to Chevrolet
Chevrolet
Chevrolet , also known as Chevy , is a brand of vehicle produced by General Motors Company . Founded by Louis Chevrolet and ousted GM founder William C. Durant on November 3, 1911, General Motors acquired Chevrolet in 1918...
and Pontiac
Pontiac
Pontiac was an automobile brand that was established in 1926 as a companion make for General Motors' Oakland. Quickly overtaking its parent in popularity, it supplanted the Oakland brand entirely by 1933 and, for most of its life, became a companion make for Chevrolet. Pontiac was sold in the...
, while Cadillac
Cadillac
Cadillac is an American luxury vehicle marque owned by General Motors . Cadillac vehicles are sold in over 50 countries and territories, but mostly in North America. Cadillac is currently the second oldest American automobile manufacturer behind fellow GM marque Buick and is among the oldest...
was considered the luxury brand.
Probably the most renowned example is Audi
Audi
Audi AG is a German automobile manufacturer, from supermini to crossover SUVs in various body styles and price ranges that are marketed under the Audi brand , positioned as the premium brand within the Volkswagen Group....
, a brand within the Volkswagen Group
Volkswagen Group
Volkswagen Group is a German multinational automobile manufacturing group. , Volkswagen was ranked as the world’s third largest motor vehicle manufacturer and Europe's largest....
. While very few cars share the same bodywork, nearly all Audis use components from their more pedestrian counterparts, sold as Volkswagen Group's mass market brands. Although this has been a practice when Volkswagen first acquired Audi in 1964, through the last fifteen years the brand was shifted more up-market to compete with more luxurious Mercedes-Benz
Mercedes-Benz
Mercedes-Benz is a German manufacturer of automobiles, buses, coaches, and trucks. Mercedes-Benz is a division of its parent company, Daimler AG...
and BMW
BMW
Bayerische Motoren Werke AG is a German automobile, motorcycle and engine manufacturing company founded in 1916. It also owns and produces the Mini marque, and is the parent company of Rolls-Royce Motor Cars. BMW produces motorcycles under BMW Motorrad and Husqvarna brands...
. As an effort to place Audi as a premium marque, Volkswagen frequently introduces new technologies in Audi-branded cars before fitting them to more mainstream products (such as Direct-Shift Gearbox
Direct-Shift Gearbox
The Direct-Shift Gearbox , commonly abbreviated to DSG, is an electronically controlled dual clutch multiple-shaft manual gearbox, in a transaxle design - without a conventional clutch pedal, and with full automatic, or semi-manual control...
).
Japanese carmakers have followed this practice of rebadging as well, such as Honda
Honda
is a Japanese public multinational corporation primarily known as a manufacturer of automobiles and motorcycles.Honda has been the world's largest motorcycle manufacturer since 1959, as well as the world's largest manufacturer of internal combustion engines measured by volume, producing more than...
's Acura
Acura
Acura is the luxury vehicle division of Japanese automaker Honda Motor Company. The brand has been available in the United States and Canada since March 1986, marketing luxury, performance, and near-performance vehicles. It was introduced to Hong Kong in 1991, Mexico in 2004, and China in 2006...
line, Nissan's Infiniti
Infiniti
is the luxury division of automaker Nissan. Infiniti officially started selling vehicles on November 8, 1989 in North America. Marketing operations have since grown to include the Middle East, South Korea, Russia, Taiwan, China, Ukraine and the United Kingdom. Infiniti began sales in additional...
brand, and Toyota's Lexus
Lexus
is the luxury vehicle division of Japanese automaker Toyota Motor Corporation. First introduced in 1989 in the United States, Lexus is now sold globally and has become Japan's largest-selling make of premium cars. The Lexus marque is marketed in over 70 countries and territories worldwide, and has...
marque, as the entry-level luxury models were based on their mainstream lineup. For example, the Lexus ES
Lexus ES
The Lexus ES series is a family of mid-size luxury sedans sold by Lexus since 1989. Now in its fifth generation, the series has been consistently built on the Toyota Camry platform with a V6 engine, automatic transmission, and front-wheel drive...
shares the same drivetrain and is based on the same platform as the Toyota Camry
Toyota Camry
The Toyota Camry is a series of mid-size automobiles manufactured by Toyota since 1982, and sold in the majority of automotive markets throughout the world...
; the Lexus LX
Lexus LX
The Lexus LX is a full-size sport utility vehicle sold by Lexus since 1996. Three generations of the Lexus LX have been produced, all based heavily on the long-running Toyota Land Cruiser series of SUVs. The first generation LX 450 debuted in 1996 as Lexus' first entry into the SUV market. Its...
is an upgraded rebadge of the Toyota Land Cruiser
Toyota Land Cruiser
The is a series of four-wheel drive vehicles produced by the Japanese car maker Toyota Motor Corporation. It is not related to the Studebaker Land Cruiser car produced in the US from 1934-1954....
, and the Acura TSX
Acura TSX
-Overview:Named as Touring Sportscar eXperimental. The 2004 model year TSX's powertrain consisted of a 2.4-litre inline four-cylinder engine, a six-speed manual transmission , and a front wheel drive layout. A five-speed automatic transmission was a no-cost option in the U.S...
is a rebadge of the JDM Honda Accord
Honda Accord
The Honda Accord is a series of compact, mid-size and full-size automobiles manufactured by Honda since 1976, and sold in a majority of automotive markets throughout the world....
.
Ruf Automobile manufacturing cars using badge engineering method, but their method is very unique compared to usual badge engineering methods. They build cars using their own-made parts instead of simply putting the badge. Examples of cars building in this method are CTR Yellowbird
RUF CTR
The Ruf CTR also known as the CTR Yellowbird or simply Yellowbird, was a limited-production, high performance sports car produced by Ruf Automobile of Germany....
, CTR2
RUF CTR2
The Ruf CTR2 was a 2-door sports car built by Ruf Automobile of Germany and based on Porsche's Type 993 generation 911.- History :Ruf came into the public eye in 1987 when they released their Porsche 911 Carrera 3.2-based CTR, an extremely limited-production model which for several years held the...
, RGT
Ruf RGT
The RUF RGT is a sports car made by RUF Automobile of Germany.Rebadged from Porsche 911 GT3, the RUF RGT was introduced in 2000. Inspired by the 1973 Porsche Carrera RS, the RUF RGT combines light weight with a powerful engine to provide impressive performance. Acceleration of the original 3.6L...
and eRuf Model A
ERuf Model A
The eRuf Model A is an all-electric sports car made by German automobile manufacturer Ruf Automobile. The car is powered by a UQM Technologies propulsion system . The car has a top speed of and it’s capable of making and of torque...
, which are based on different generations of Porsche 911 series.
Problems
Although intended to save development costs by spreading design and research costs over several vehicles, excessive badge engineering can be problematic if not implemented properly. Having multiple car brands can greatly increase selling cost, as each brand must be marketed separately and often requires its own dealership network. Badge engineering can also hurt overall sales by resulting in "cannibalism" between two or more brands owned by the same company, by failing to develop a distinct image for each brand, or by allowing the failure of one version of a model to carry over to its rebadged "siblings." The failure of the short-lived EagleEagle (automobile)
Eagle was a marque of the Chrysler Corporation following the purchase of American Motors Corporation and aimed at the enthusiast driver.Though short-lived, the Eagle Vision sedan sold in respectable numbers, while the sporty Eagle Talon sold more than 115,000 units.-Overview:Following the...
brand sold by Chrysler
Chrysler
Chrysler Group LLC is a multinational automaker headquartered in Auburn Hills, Michigan, USA. Chrysler was first organized as the Chrysler Corporation in 1925....
is often attributed to it being crowded out by the company's other more established divisions and the failure to effectively incorporate the new marque into Chrysler's dealer network.
Origins of General Motors' badge engineering dates back to the early 1970s when the Chevrolet Nova
Chevrolet Nova
The Chevrolet Chevy II/Nova is a compact automobile manufactured by the Chevrolet division of General Motors produced in four generations for the 1962 through 1979 model years. Nova was the top model in the Chevy II lineup through 1968. The Chevy II nameplate was dropped, Nova becoming the...
compact was rebadged by the upscale Buick Apollo (Skylark after 1975), Oldsmobile (Omega), and Pontiac (Ventura II and Phoenix) divisions as entry-level cars. By the late 1970s, GM's downsized B, C, and D platform cars set the standard of the inevitable when badge engineering and platform sharing were fused together as a means to trim excess production expenditures - similar-looking bodystyles with distinctive appearances which was a trend throughout the 1980s. This trend continued with subsequent platforms from the J-car to its redesigned FWD full-size sedans. The ill-received Cadillac Cimarron
Cadillac Cimarron
The Cadillac Cimarron was a compact car built by Cadillac based on the GM J platform. It was first introduced in 1981 for the 1982 model year, and sold through 1988. During its seven-year model run, 132,499 Cimarrons were built.-Development:...
is one of the most widely-cited examples of problems with badge engineering. The car was essentially identical to the Chevrolet Cavalier
Chevrolet Cavalier
The Chevrolet Cavalier was a compact automobile produced from 1982 to 2005 by General Motors. Built on the company's J platform, the Cavalier was one of the best-selling cars in the United States throughout its life.- Predecessors :...
save for cosmetic differences, which resulted in poor sales, as the company found few buyers willing to pay nearly twice as much for a car that offered little more than the Cavalier. This resulted in damage to the Cadillac brand image. Other manufacturers have giving badge engineered cars the distinct branding and style, high-quality interior materials, wide range of convenience features, and performance powertrains, as these are key to distinguishing them from mass market equivalents and making these appeal to consumers; successful luxury cars following this formula include the Lexus ES
Lexus ES
The Lexus ES series is a family of mid-size luxury sedans sold by Lexus since 1989. Now in its fifth generation, the series has been consistently built on the Toyota Camry platform with a V6 engine, automatic transmission, and front-wheel drive...
, Acura TL
Acura TL
The TL "Touring Luxury" debuted as 1996 model, first with the 1996 2.5 TL available with the 2.5 L 176 hp SOHC 20-valve 5-cylinder engine from the Vigor. The 3.2 TL used the 3.2 L 200 hp SOHC 24v V6 from the second generation Acura Legend. The 2.5 TL was positioned as the...
, and Audi A3
Audi A3
The Audi A3 is a small family car produced by the German automaker Audi since 1996. Two generations of A3 exist, both based on the Volkswagen Group A platform, which they share with several other models such as the Audi TT, Volkswagen Golf, Volkswagen Caddy and Volkswagen Touran as well as SEAT...
.
The Lincoln Navigator
Lincoln Navigator
The Lincoln Navigator is a full-size luxury SUV built by the Ford Motor Company for its luxury division, Lincoln. Introduced as a 1998 model, production began May 14, 1997 with sales beginning in August. The Navigator was Lincoln's first SUV as well as its first four-wheel drive capable vehicle...
, derived from the Ford Expedition
Ford Expedition
The Ford Expedition is a full-size SUV built by the Ford Motor Company. Introduced in 1997 as a replacement to the Ford Bronco, it was previously slotted between the smaller Ford Explorer and the larger Ford Excursion, but as of the 2005 model year, it is Ford's largest and last truck-based,...
, proved very successful. However, the Ford Explorer
Ford Explorer
The Ford Explorer is a sport-utility vehicle sold in North America and built by the Ford Motor Company since 1990, as a replacement for the smaller but related Ford Bronco II. It is manufactured in Chicago, Illinois...
-based Lincoln Aviator
Lincoln Aviator
The Lincoln Aviator was a mid-size sport utility vehicle produced by the Ford Motor Company's Lincoln luxury division. It was introduced in 2002, and production ended in 2005. The Aviator was built exclusively at Ford's St. Louis Assembly plant in Hazelwood, Missouri...
failed. The fact that the Aviator was virtually identical to the Navigator in all regards but size made it difficult to generate attention among potential buyers, and the Mercury Mountaineer
Mercury Mountaineer
Although the redesigned Explorer had already been out for two years, Mercury introduced an Explorer twin called the Mountaineer. The Mountaineer was only slightly different from the Explorer, although it did offer a few extra luxury features that the Explorer lacked, such as a standard 302 cu in ...
had already proved sufficient to cater to buyers wanting a slightly more upscale alternative to the Explorer.
As the U.S. auto industry continues to flounder, discontinuing or merging one or more brand divisions has been floated as a cost-cutting idea the Big Three could implement. Some in the industry had, for example, suggested that General Motors
General Motors
General Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...
discontinue its Buick
Buick
Buick is a premium brand of General Motors . Buick models are sold in the United States, Canada, Mexico, China, Taiwan, and Israel, with China being its largest market. Buick holds the distinction as the oldest active American make...
and/or Pontiac
Pontiac
Pontiac was an automobile brand that was established in 1926 as a companion make for General Motors' Oakland. Quickly overtaking its parent in popularity, it supplanted the Oakland brand entirely by 1933 and, for most of its life, became a companion make for Chevrolet. Pontiac was sold in the...
lines (which was done earlier when the Oldsmobile
Oldsmobile
Oldsmobile was a brand of American automobile produced for most of its existence by General Motors. It was founded by Ransom E. Olds in 1897. In its 107-year history, it produced 35.2 million cars, including at least 14 million built at its Lansing, Michigan factory...
brand was discontinued in 2004), and that Ford
Ford Motor Company
Ford Motor Company is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK...
sell its Volvo
Volvo Cars
Volvo Car Corporation, or Volvo Personvagnar AB, is a Swedish automobile manufacturer founded in 1927, in Gothenburg, Sweden. It is owned by Zhejiang Geely Holding Group. Volvo was originally formed as a subsidiary company to the ball bearing maker SKF. When Volvo AB was introduced on the Swedish...
division, which was previously a separate carmaker in its own right. GM phased out the Pontiac brand in October 2010, while Ford in March 2010 sold Volvo to the Chinese manufacturer Geely Automobile
Geely Automobile
Zhejiang Geely Holding Group is a holding company and parent of Geely Automobile Holdings Ltd a private automobile manufacturer. Geely may often round out the top ten Chinese automakers....
(after it had sold its other luxury brands of Jaguar, Land Rover
Land Rover
Land Rover is a British car manufacturer with its headquarters in Gaydon, Warwickshire, United Kingdom which specialises in four-wheel-drive vehicles. It is owned by the Indian company Tata Motors, forming part of their Jaguar Land Rover group...
, and Aston Martin
Aston Martin
Aston Martin Lagonda Limited is a British manufacturer of luxury sports cars, based in Gaydon, Warwickshire. The company name is derived from the name of one of the company's founders, Lionel Martin, and from the Aston Hill speed hillclimb near Aston Clinton in Buckinghamshire...
). Its Mercury
Mercury (automobile)
Mercury was an automobile marque of the Ford Motor Company launched in 1938 by Edsel Ford, son of Henry Ford, to market entry-level luxury cars slotted between Ford-branded regular models and Lincoln-branded luxury vehicles, similar to General Motors' Buick brand, and Chrysler's namesake brand...
brand was phased out in December 2010.
In Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
, the Timor, derived from the South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
n Mazda 323-based Kia Sephia
Kia Sephia
The Kia Sephia is a compact car that was manufactured by the South Korean automaker Kia Motors from September 1992 to 2003. The name "Sephia" is an acronym of these words: "style", "elegant", "powerful", "hi-tech", "ideal", and "auto"....
, proved very controversial. The fact that the Timor was not assembled in Indonesia, rather, it was imported completely built-up, stirred up annoyance among car companies, especially Toyota, which were producing many vehicles in the country.
Models produced under licence
A variant on rebadging is licensing models to be produced by other companies, typically in another country. One example of this is the British Hillman HunterHillman Hunter
Rootes Arrow was the manufacturer's name for a range of cars produced under several badge-engineered marques by the Rootes Group from 1966 to 1979. It is amongst the last Rootes designs, developed with no influence from future owner Chrysler...
, which was license-built in Iran
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
as the iconic Paykan
Paykan
]The Paykan was an automobile produced by the Iranian company Iran Khodro Industrial Group. The car was very popular in Iran from the late 1960s to the late 1990s...
, as well as Naza
Naza
Naza Group of Companies is a Malaysian business conglomerate associated with motor trading, automotive franchises and property development, which began operations in 1974...
, building vehicles under license from Kia
Kia Motors
Kia Motors , headquartered in Seoul, is South Korea's second-largest automobile manufacturer, following the Hyundai Motor Company, with sales of over 1.4 million vehicles in 2010...
and Peugeot
Peugeot
Peugeot is a major French car brand, part of PSA Peugeot Citroën, the second largest carmaker based in Europe.The family business that precedes the current Peugeot company was founded in 1810, and manufactured coffee mills and bicycles. On 20 November 1858, Emile Peugeot applied for the lion...
(Naza 206 Bestari).