By Peter M. DeLorenzo
Detroit. According to our Autoextremist calendar, this week is normally reserved for our AE Brand Image Meter. But given that the entire industry has been basically on hold for the last four months, and brands have been filling the airwaves and the Internet with messages about how much they care about everything, we’re going to save our Brand Image Meter column for later in the year.
That doesn’t mean, however, that brand image is far from my mind. It’s still one of the most important – and most fragile – aspects of this business. It can take years for an auto manufacturer to establish a discernible image, and a good one is not won easily. It takes a focused consistency on the brand that endures through myriad new product updates and introductions and the usual carousel of seemingly endless executive changes.
It’s easy to tick off the brands that have enjoyed considerable success over the last decade: Jeep, Porsche, Lamborghini, Ferrari, Audi, Bentley, BMW, Mercedes-Benz, Range Rover and Rolls-Royce, just to name a few. That there is a natural ebb and flow to these brands’ image success is undeniable, but for the most part they have remained consistent and have reaped the sales benefits – and repeat buyers – because of their elevated brand images.
But then again, nothing is guaranteed in this business and indeed, nothing lasts forever. And this week, I am painfully reminded of that fact with two brands in particular: BMW and Porsche.
That BMW always seems to be teetering on brand suicide has been a recurring theme in my columns for a decade. In its quest to be in every garage in America, BMW has naturally devolved to wallowing in the most dreaded branding mistake in this business: Being All Things to All People. BMW executives have followed the downtrodden path of “if one SUV/Crossover thingy is good, then a dozen more must be better!” for so long now that it’s no wonder they must have difficulty remembering what BMW once stood for.
Then again, what does BMW stand for? Any residual goodness of its legendary 2002 sport sedan has been long gone for four decades. And BMW purists might vociferously protest this take, but the hoary argument that BMW is just taking advantage of the market and in doing so it allows the company to still build cool cars for the traditional BMW enthusiast just doesn’t hold up. Why? Because BMWs have grown bigger, fatter and sluggish. They’re overly laden with technology for technology’s sake, and that direction has been costly in terms of drivability and most important - just plain old fun behind the wheel.
It’s only semi-funny that every time BMW does something that’s even remotely positive BMW fanboys insist that it is an indication that company operatives are finally rediscovering their roots. It never lasts, unfortunately. BMW seems to be locked in a one-step forward, three-steps back dance of mediocrity that perpetually mires the company in a suspended state of animation. BMW operatives can’t remember what BMW once stood for because they simply don’t have a clue.
The latest evidence of this? The all-new, second-generation BMW 4 Series Coupe. That BMW designers have been flirting with disaster for years now due to their infatuation with increasingly large and toothy grilles is well-documented. The new 7 Series sedan and giant X7 SUV are rolling blunderbuss-caliber monstrosities that seem to exist in a parallel universe that places a premium on circus wagons.
(BMW)
Upon first glance, the new BMW 4 Series from a rear, 7/8 angle view is an elegant update of their current coupe design form. It is crisp and nicely rendered. Not bad, right? But when you get around to the front, all Hell breaks loose.
(BMW)
This is what BMW's PR minions say: "The vehicle’s design and engineering teams wanted to deliver the ultimate driving experience in a beautiful and low-slung package that ensures the 2021 4 Series Coupe stays at the top of its segment." This is what I say: This is such a design abomination from the front - even though the photographers tried their damnedest to conceal the sheer ugliness of it - that it is nothing short of an unmitigated disaster. How did this Bucky Beaver design escape the friendly confines of the BMW design studio? Didn’t anyone – Bueller? – have the cojones to stand up and say in a meeting, “Uh, excuse me, but what the hell are you guys thinking?” Obviously not. I attribute this monumental design atrocity to three things: Stubbornness. Arrogance. And hubris. Otherwise known as the Trifecta of Not Good. Any shred of optimism that BMW was going to get its act together anytime soon has been convincingly buried in one fell swoop.
But as depressing as BMW’s current state is, I am much more worried about the latest developments coming out of Stuttgart-Zuffenhausen. That Porsche has been the poster company for anticipating and adapting to market shifts – their shift to SUVs saved the company – has been well-documented. Porsche fanboys insist that if Porsche hadn’t taken that action, the company wouldn’t be able to build the hard-core enthusiast sports cars or go racing, which is the lifeblood of the company. Let’s just say that argument used to hold up, because racing is no longer the lifeblood of the company, apparently.
Last week, the company announced it was pulling its vaunted Porsche 911 RSR GTLM racing machines (below) out of the IMSA WeatherTech SportsCar Championship in North America at the end of this season. The reason given was the financial fallout due to the coronavirus pandemic, but there’s much more to this story than meets the eye.
(Porsche)
First of all, the Volkswagen Group is so committed to all-electric vehicles for its future product portfolio that it is becoming readily apparent that development of their ICE (internal combustion engine) vehicles is taking a back seat, even at Porsche. The tone of the release was that Porsche would be back, but ominously, the company seems to think that its Esports involvement will suffice going forward. And even if the company does return to top-line GT racing, it will be at least three years before that happens given Porsche’s previous history of racing pullbacks and reengagement.
But that’s just one dimension to this. More distressing than the news that Porsche was withdrawing from its “lifeblood” – racing – was the announcement of what it calls the 2021 Porsche 911 Targa 4S Heritage Design Edition, which will be the first of four special Heritage Design models.
(Porsche)
Why should this Porsche be any more significant than previous Porsche special editions? After all, it is no secret that Porsche has the most usurious pricing strategy/option list in the business, and it never hesitates to exploit its fan base to extract every last dollar possible. The operatives at Porsche are the preeminent greed merchants in this industry, and that's saying something when there's an industry full of 'em. Limited to 992 models worldwide, the 2021 Porsche 911 Targa 4S Heritage Design Edition is supposed to evoke memories of Porsche models from the 50s. This is what Oliver Blume, Chairman of the Executive Board of Porsche AG had to say about it: “We are evoking memories of the 1950s, 1960s, 1970s and 1980s in customers and fans with the Heritage Design models. No brand can translate these elements into the modern day as well as Porsche, and, along the way, we’re fulfilling the wishes of our customers. With the exclusive special editions, we are also establishing a new product line which represents the ‘lifestyle’ dimension in our product strategy.”
(Porsche)
Really? Let's stop right there, because when Porsche starts talking about "lifestyle dimensions" the brand is in serious trouble. I am not going to bother to regurgitate all of the "exclusive" details, because they're too tedious and contrived to mention, but suffice to say, this brand direction is a new low for Porsche. How much? The 2021 911 Targa 4S Heritage Design Edition has an MSRP of $180,600, not including a $1,350 delivery, processing and handling fee. It is expected to reach U.S. dealers in late 2020. Along with the introduction of the special edition, certain interior elements will be available as part of the Heritage Design package for all current 911 models. But wait, if you really want to be The Biggest Tool in the Shed, Porsche Design has created a high-quality chronograph, also a limited edition, which will be offered for sale exclusively to customers purchasing the special model. The 911 Targa 4S Heritage Design edition chronograph will set you back another $14,000, and it can be purchased at authorized Porsche dealers exclusively by owners (aka The Biggest Tools) of the 911 Targa 4S Heritage Design Edition.
It's no secret that when auto manufacturers start playing out the string with a brand, they start coming up with special editions to extract every last dollar out of their brand faithful. Porsche is no different in that regard. What’s different here is the at the same time Porsche is walking away from its “lifeblood” – which is competing at the top level of international GT racing – it is openly talking about the new “lifestyle dimension” of its product strategy. It’s an ominous move in the wrong direction. Nicely done Porsche, you unmitigated hacks.
As I said earlier, nothing is guaranteed in this business and indeed, nothing lasts forever. But when you’re a top brand and you lose focus, it’s damn-near unforgivable in my book. And a giant bowl of Not Good.
And that’s the High-Octane Truth for this week.