While human beings hope to someday afford new leases of literal life, the world’s car firms and their products, which fell by the wayside due to a variety of factors, have periodically been rising from the dead, especially over the last two decades. DaimlerChrysler recently relaunched the long dormant Maybach brand, Volkswagen has breathed new life into Bugatti, and General Motors’ acquisition of the Daewoo over a year ago always implied that its cars would continue to live on, overcoming bankruptcy and perception problems. IDENTITY CRISIS Badge engineering in the West and more developed markets is all about repackaging a car and marketing under a completely different identity. In addition to the similarity of chassis, interiors and engines, you could also have similar suspension set-ups. But the latter could be tuned for either a smoother, luxurious ride or a firm, sportier ride, depending on the car it is going to be used in. A more prestigious brand could have a more luxurious version, while an utilitarian brand hawks a relatively basic version. The sybaritic version comes with a lot of goodies, besides, of course, a higher base price. To put that in perspective, it is like having a Maruti Wagon-R and an Opel Agila in the same market, though the Agila would come with a slightly differnt styling and more features. LEASE OF LIFEGeneral Motors India’s recent roll-out of the Chevrolet Optra at its Halol plant in Gujarat is yet another automotive resuscitatory example. And how, you may ask. The Optra is actually an upgraded Daewoo Nubira, which figured as a possible introduction in the Indian auto mart not too long back. But that was when there was still hope for South Korean car maker. What followed, of course, was a messy saga as Daewoo collapsed, and global giants such as Ford and General Motors involved themselves in prolonged bargaining sessions with the South Korean government. As you would all be aware, GM got Daewoo in the end (the entity is now known as GM-Daewoo; Suzuki too has significant interests in the firm), and with it, the defunct carmaker’s models such as the effervescent Matiz, the Magnus, and the car in question, though with a different name, the Nubira.In a way, the Daewoo Nubira lives on thanks to cross-branding or badge-engineering, a concept that helps car firms cut down on costs, share parts and face up to the imposing reality of increased competition. Over the years, global auto giants such as Ford, GM and Volkswagen, who between them own a significant number of marques, have been employing the same to good effect. It’s a good deal better and cheaper than developing an all-new car for a specific country. CROSS-COUNTRYSays a Delhi-based auto analyst, “When Daewoo collapsed, it had models that were popular and sold in many countries. GM, along with Suzuki, needed those models that could launch them in Asia. The costs involved are not much, compared to building an all-new car.” According to him, the Optra has already been launched in Canada. Cars are termed cross-branded or badge-engineered when they are built on the same chassis and also share most of their underhood and interior parts. While the engines employed are mostly the same, horsepower ratings may vary. In the not too distant future in India, you could have a Mazda sold as a Ford, a Daihatsu small car as a Toyota, and an upgraded Daewoo Magnus as the Suzuki Verona, as each car maker, with a quiver full of products, decides on the brand it thinks will suit a country’s profile.GOLDEN OLDIEBadge-engineering or cross-branding isn’t an entirely new concept — GM used it as early as the 70s, but Indians get a real taste of it now with the Chevrolet Optra and the Forester (the Wagon R, and the Opel Agila — sold in Europe — too are twins, but with the two recent Chevrolet launches, the scale of cross-branding activity has moved up a couple of notches).The Optra fits perfectly well into GMI India’s plans with Chevrolet. The manufacturer, which currently manufactures the Opel Astra, Corsa, Swing and Sail in India, is positioning Chevrolet as a trendy, youthful and affordable brand. A month or two back, it launched the Forester SUV, slotted in the D-segment, and with the Optra, it intends to enter the C+ segment that currently has the Toyota Corolla and the Skoda Octavia, among others. The Optra is based on Daewoo’s (read GM-Daewoo) J200 Lacetti that was displayed at the Seoul Motor Show in November 2002, and is, like in India, aimed at stopping the ridiculous success of the Toyota Corolla in Asia, Europe, and America. Says Hormazd Sorabjee, editor, Autocar India,”Opel was proving to be too niche for General Motors India, which is why they had to go in for Chevrolet. If you look at it, their strategy is the same across Asia — two umbrella brands. While too much badge engineering could cause confusion among buyers, it’s been around for a too long a time and seems to be working in favour of the car makers.”Designed by Italian firm, Pininfarina, the Optra will soon start rolling out from General Motors’ Rayong plant in Thailand, which could then supply the completely knocked down kits of the car to India. P Balendran, vice-president, corporate communications, GMI, while being tight-lipped on the pricing and engine specifications, indicated that the Optra was an out-and-out GM product and would conform to General Motors’ high standards of quality, with class-leading ride, handling and interiors. Incidentally, the Chevrolet Forester, too, is born out of cross-branding, and sells in most parts of the world as a Subaru, in which GM has a stake. And there are more instances of Daewoo’s rebirth, as the Matiz is on its way to being introduced as the Chevrolet Spark in China, the Optra could also be sold as a Suzuki Verona (GM and the Japanese carmaker have an alliance), and China could again get a slightly altered Optra as the Buick Excelle. It might seem highly confusing and, at times, even unfair, but cross-branding, firmly entrenched as it has been for sometime now, will also be a compelling way of functioning for auto firms in the future.
