Do new brands from large car manufacturers always fail?[edited]

Kinja'd!!! "BvdV - The Dutch Engineer" (dutchengineer)
02/03/2016 at 13:03 • Filed to: None

Kinja'd!!!1 Kinja'd!!! 23

I started think about this due to Scion going away and all. I mean GM tried with Saturn, Ford tried with Edsel and I’m sure there have been many more. So why is it that these new brands launched by large manufacturers fail? Is it because of the shared(I suppose those are shared, in Europe we would do that at least) dealerships or something?

Have this Edsel motorhome for your time:

Kinja'd!!!

Edit: It seems like I’ve forgotten all the brands that did work out......


DISCUSSION (23)


Kinja'd!!! RamblinRover Luxury-Yacht > BvdV - The Dutch Engineer
02/03/2016 at 13:09

Kinja'd!!!3

At last call, GM’s spinoff of Pontiac from Oakland had a pretty good run...


Kinja'd!!! wiffleballtony > BvdV - The Dutch Engineer
02/03/2016 at 13:10

Kinja'd!!!5

Hmmm, maybe I don’t get the question. However it seems to me Lexus, Infiniti, Acura seem to do alright.


Kinja'd!!! Stapleface > BvdV - The Dutch Engineer
02/03/2016 at 13:12

Kinja'd!!!0

I think the dealership is a huge part of it. You need to differentiate the two or else it won’t feel like something different. Think back to when the Japanese made their luxury divisions. I couldn't foresee anyone going into a Nissan dealership and plunking down 60k(?) for a Q54


Kinja'd!!! Cé hé sin > BvdV - The Dutch Engineer
02/03/2016 at 13:14

Kinja'd!!!1

They often do, at least in some markets. Toyota have spent decades trying to sell Lexus in Europe with little success and Nissan have tried Infiniti with even less success. They both do well in America though.


Kinja'd!!! lone_liberal > BvdV - The Dutch Engineer
02/03/2016 at 13:16

Kinja'd!!!2

Both Saturn and Scion were starved of product. Edsel launched in to the teeth of a recession with an ugly car that had quality issues. I guess what I’m saying is that it takes commitment and good cars to do it and the manufacturers are more likely to have that commitment with higher end vehicles that have more profit and prestige.


Kinja'd!!! CALUSA > BvdV - The Dutch Engineer
02/03/2016 at 13:20

Kinja'd!!!0

Smart isn’t doing well either.


Kinja'd!!! FrankAtlanta > BvdV - The Dutch Engineer
02/03/2016 at 13:28

Kinja'd!!!1

Lexus, Infiniti, Acura (sort of).


Kinja'd!!! RamblinRover Luxury-Yacht > lone_liberal
02/03/2016 at 13:34

Kinja'd!!!1

Further, there was a civil war on at Ford, which took several years to sort of have a victor.


Kinja'd!!! AndyG_UK > BvdV - The Dutch Engineer
02/03/2016 at 13:44

Kinja'd!!!3

Land Rover are pretty well with their Range Rover sub brand...........


Kinja'd!!! Mercedes Streeter > CALUSA
02/03/2016 at 13:48

Kinja'd!!!2

Well, they used to not be doing well. The W452 and W454 screwed up their finances hard. The W451 did much better, but it took to about last year (8 years after the W451 release) for smart’s finances actually to be profitable.

And they’re hitting it out of the park with the new C453 and the W453, so hopefully their trend of doing well will continue.


Kinja'd!!! Berang > AndyG_UK
02/03/2016 at 13:48

Kinja'd!!!1

And Land Rover was a sub-brand of Rover to begin with.


Kinja'd!!! Berang > BvdV - The Dutch Engineer
02/03/2016 at 13:49

Kinja'd!!!0

Sometimes the new brand takes over. AMC is dead, but Jeep is still around.


Kinja'd!!! Mercedes Streeter > BvdV - The Dutch Engineer
02/03/2016 at 13:49

Kinja'd!!!0

I can’t think of any subsidiary that rocks at selling products.

Even my beloved smart (which opened its doors in 1998) took all the way to 2015 to become profitable for Mercedes-Benz. And so far, the profit margins are slim, so they can easily fall back into the red if they screw up again.


Kinja'd!!! AndyG_UK > Berang
02/03/2016 at 13:50

Kinja'd!!!2

So the sub brand, which has a very successful sub brand of its own, out lives the brand it was sub branded from, mind blown!


Kinja'd!!! Berang > AndyG_UK
02/03/2016 at 13:52

Kinja'd!!!4

Similar thing happened with AMC and Jeep. Jeep’s still around, AMC’s been dead for a long time now.


Kinja'd!!! AndyG_UK > Berang
02/03/2016 at 13:56

Kinja'd!!!0

Another great example,.


Kinja'd!!! CALUSA > Mercedes Streeter
02/03/2016 at 14:07

Kinja'd!!!1

That’s a big surprise for me. I never see them in Europe really..... Only some company cars with a big ad on it.


Kinja'd!!! Mercedes Streeter > CALUSA
02/03/2016 at 14:10

Kinja'd!!!1

They’re supremely popular in some cities in Europe, to the point where they’re the most stolen car in France for like 5 years running. lol


Kinja'd!!! CALUSA > Mercedes Streeter
02/03/2016 at 14:12

Kinja'd!!!0

LOL didn’t expect that!


Kinja'd!!! Manwich - now Keto-Friendly > BvdV - The Dutch Engineer
02/03/2016 at 14:45

Kinja'd!!!0

Lexus, Infiniti, and Acura are all alive and kicking.

I’d say that Lexus is the most successful, Infiniti started slow but got better (but I’m not a fan of the changes Vitchy von Sneezin made before he left Infiniti for Cadillac) and Acura started out well, then went downhill, but seems to be slowly recovering.


Kinja'd!!! AfromanGTO > RamblinRover Luxury-Yacht
02/03/2016 at 14:58

Kinja'd!!!0

Beat me to it!


Kinja'd!!! pip bip - choose Corrour > Mercedes Streeter
02/04/2016 at 05:32

Kinja'd!!!0

TIL!


Kinja'd!!! pip bip - choose Corrour > Cé hé sin
02/04/2016 at 05:34

Kinja'd!!!0

Lexus are doing well here in Australia , yet Infiniti are not (they only returned in 2012 after a 19 year break