Rebadged Luxury: Is It Ever A Good Idea To Buy Fake Prestige?

What is in a name? That which we call a rose, by any other name would smell as sweet.

Shakespeare was probably not thinking of the auto industry when he wrote those famous lines, but his point is worth remembering the next time you buy a car.

The truth is the global auto market is now full of identical or near-identical cars sold under different brand names and at different prices. The practice, known — with a touch of irony — as “badge engineering,” enables car companies to source models from competitors, thereby rounding out their product lines without investing in the massive tooling needed to make each model in-house. It is quite different from the better known phenomenon of “platform sharing,” which signifies merely that different car models share a basic skeleton. Rebadged cars are identical in all respects, except perhaps for some tiny cosmetic distinctions such as the placing of the headlamps or the shape of the trunk. They not only come from the same factories but are in many cases made by the same workers on the same production lines. Yet their prices can vary significantly depending on which maker’s badge is on the grill.

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thetruth01 - 7/5/2013 4:53:52 PM

0 Boost

Can we all agree that Forbes does not know much about cars?

"The practice, known — with a touch of irony — as “badge engineering,” enables car companies to source models from competitors"
Where's the irony? And it's not always from competitors; more often it is from a sister brand.
"better known phenomenon of “platform sharing,”"
I don't believe platform sharing is a better know term at all.
"In a variation on the badge engineering phenomenon, many corporations sell the same car at different prices under different in-house badges."
That is not a variation; that is badge engineering.
"it is apparent that General Motors is hardly alone among U.S. market players in deploying this gambit."
Well that's genius.

All of this so they can criticiz the Cygnet. Again. Like everyone else. There's no way on God's Green Earth I would buy a Cygnet. But we all know the reasons why this car existss. This article provides nothing new to the story. Except a whole lotta bad wrirting in the process.

Can we also all agree that any article that has any negativity towards ToMoCo is gonna go right to the top of 009's in-box, and get regurgitated here as "news?"

Thanks for sharing, 009. My day is complete now.

TheSteve - 7/5/2013 6:20:32 PM

+3 Boost

If you believe that what other's think of you will make you happy (AKA Prestige), then you're fighting a battle you can't win.

The best place to be, is one in which you like yourself, you feel good about who you are, you're good with your decisions, and you don't give a rip what others think of you! In this place, you could drive a Yugo and feel good about yourself, and if you drive a Ferrari, it's because you just want the experience, rather than "needing" it to feel better, or to win other's approval or envy.

dodgedart - 7/6/2013 1:21:41 AM

+2 Boost

People have no problem with the idea that airline seats on the same flight will vary in cost for any number of reasons. The market/model works. Everybody happy.

cidflekken - 7/6/2013 5:36:36 AM

+1 Boost

This guy uses the Tahoe/Yukon as an example. If he had done sufficient research, he would realize that the price difference is due to equipment levels, despite his stating that they are "virtually" the same. The Yukon has a Bose 9-speaker sound system as standard and that system isn't even available on the Tahoe.

However, I do agree with the Cygnet vs. iQ comparison. The only major change Aston made was to the interior. While it's an amazing interior for any price range, is it worth $30k+ premium over the mundane iQ's interior? Probably not.

2ndbimmer - 7/6/2013 10:49:11 AM

+3 Boost

people buy rebadged "luxury" all the time. Lexus, Acura and Infiniti.

85bmw745i - 7/15/2013 8:54:48 PM

+1 Boost

Don't forget the Cadillac Escalade, biggest rip off of them all.