Rebadging
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, a manufacturer creates a distinct automobile by applying a new "badge" or trademark to an existing product line.
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 even 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 1960s through to the 2000s. In most cases, consumers are interested in 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 are a rebadged model from or for other manufacturers.
Although platform sharing can often involve rebadging and rebranding, it can 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 known 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.
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 because 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 the 1958 model year, GM was promoting its 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 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". 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 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 brand; 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 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, Chevrolet, and Buick nameplates.
Brand expansion
Another way badge engineering may occur is when two separate manufacturers trade products, 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.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 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, Japanese manufacturers marketed vehicles through multiple sales networks, with a distinct vehicle being sold under various model nameplates.Toyota marketed the Corolla in Japan exclusively at Toyota Corolla Store locations; at Toyota Auto Store locations, it was named the Toyota Sprinter. Nissan sold the Nissan Cedric through its Nissan Bluebird Store network, with the identical Nissan Gloria through the Nissan Prince Store network. Honda previously marketed the Honda Accord through multiple sales networks, marketing the Accord through the Honda Clio network and renaming it as the Honda Vigor for Honda Verno locations.
The practice of producing multiple versions of the same vehicle would eventually lead to distinct vehicles produced for export. In North America, the Toyota Sprinter was marketed as the Chevrolet Nova. The Honda Vigor and Inspire were marketed as the Acura Vigor and TL; Nissan sold the Gloria in the United States as the Infiniti M45.
Joint ventures
Two automakers can also pool resources by operating a joint venture to create a product and then selling each as their own. For example, General Motors and Toyota formed NUMMI. The vehicles produced from this venture included the Toyota Sprinter/Chevrolet Prizm, and later the Toyota Matrix/Pontiac Vibe. In another agreement, Ford and Nissan developed and produced the Mercury Villager and Nissan Quest minivans from 1993 through 2002.Another example was the cooperative work between Volkswagen and Ford to develop the VW Sharan, Ford Galaxy, and SEAT Alhambra.
Badge engineering may occur when one company allows another, otherwise unaffiliated, company to market a revised version of their product through an OEM deal, as with Volkswagen marketing a modified version of the Dodge Caravan and Chrysler Town and Country minivans as the Volkswagen Routan.
Another example was the joint venture of Mitsubishi and Chrysler that resulted in vehicles produced by Diamond-Star Motors that were marketed under various nameplates from 1985 until 1993.
China
In China, foreign manufacturers were required to form a joint venture with a local manufacturer to manufacture automobiles in the country. Prior to 2022, the Chinese government dictates that no more than two joint ventures are allowed for each foreign investor. Larger foreign manufacturers often set up two joint ventures to maximize the market reach, including Toyota, Ford, Volkswagen and Honda. To distribute the production and sales rights to each joint venture, manufacturers often resort to a similar strategy deployed in Japan: simply producing the exact model under two different names with minor changes to exterior bodywork.GAC Toyota has produced the Levin as a twin model to the FAW Toyota-built Corolla and the Wildlander as the alternative to the RAV4. Honda awarded several models to two joint ventures, which spawned the Breeze from the original CR-V, the Elysion from the Odyssey, the XR-V from the HR-V, and others.
In other cases, foreign manufacturers may also rebadge a model developed by its partner, sometimes for exports to other markets. Examples include the second generation Chevrolet Captiva which is an export version of the Baojun 530 made by SAIC-GM-Wuling, or the Ford Territory, a reworked version of the Yusheng S330 developed by Jiangling Motors.