They say that as you get older, the world gets smaller. You find out that your world is connected in more ways than one. You find out that your dad might know your friends parents, or that your mom hangs out with your boss’ wife, or it could be as mundane as your friend saying “I know a guy”. Connections make the world a less stranger-filled place, and the same rings true for the automotive industry.
The total size of the industry is actually smaller than you might think. On the surface, it seems the consumer is spoiled when it comes to the various choices on offer from multiple brands. Digging a little deeper and we see that some cars are playing a game of copy and paste, or ctrl+c ctrl+v as the kids say. In a previous article, we detailed the ins and outs of rebadging in the automotive industry. We did mention that it is done for a reason, but we didn’t go into detail as to why it can be done in the first place.
Going back to the statement, “as you get older, the world gets smaller”, the more “guys” you know the easier it is to get the ball rolling when you want to start a project. The automotive industry is not as big as it once was. Several brands know and recognize each other as friends or partners. Other brands are outright owned by a parent company, and play the aforementioned game of copy and paste from time to time. While other brands form partnerships to bring a product to market.
Think of your favorite pair of sunglasses. They’re probably a pair of Ray-bans, or some designer brand. If you didn’t know, Luxottica designs and manufactures eyewear for multiple brands. The Italian company has a lot of brands under its belt, and just like car manufacturers a certain formula is used to push out products for the consumer to buy.
Business insider made a nice infographic about the industry and the biggest and most influential partnerships and brand families in the industry. While the information they have is from 2018, these partnerships are more or less the same as of writing.
Looking at the image, several brands that we thought were independent, are actually part of a family of brands, with one big parent company overseeing the development and success of each brand. Take the infographic as an indicator whenever you see a new model. You notice that Kia and Hyundai are under the same family of brands. The models that are pushed out by both brands are more or less the same chassis with different parts bolted on to it. So the Kia versus Hyundai debate can be put to rest, because no matter where you go, it’s all a matter of personal taste when it comes to the design.
The Nissan Mitsubishi and Renault alliance is also on display here. Look no further than the Xpander with its Nissan counterpart in Thailand to confirm just how powerful or leverageable these alliances and partnerships are.
Source: Business Insider
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