In the midst of the ongoing, industry-wide EV transition, some automakers are leveraging EV-centric sub-brands for their all-electric models, such as BMW’s “i” sub-brand, VW’s “ID” sub-brand, and Mercedes-Benz’s “EQ” sub-brand. Now, according to one industry expert, these EV-focused sub-brands are expected to be phased out over time, with a shift towards integrating electric vehicles with the rest of their lineup. GM is already adopting this latter strategy.
In a report from Autoweek, AutoForecast Solutions VP for Global Vehicle Forecasting Sam Fiorani highlights the upcoming shift in electric vehicle strategy among automakers. According to Fiorani, automakers should move away from using separate marketing sub-brands for their electric vehicles, and instead integrate their electric vehicles into their existing lineups. This strategy is driven by the desire to leverage the established recognition of traditional nameplates like the BMW 3 Series, Mercedes E-Class, and Volkswagen Golf, which helps maintain customer loyalty and reduces marketing expenses.
By blending electric vehicle into their conventional vehicle lineups, automakers can benefit from the brand equity of their popular names, making it easier and more cost-effective to market new all-electrics. For example, Ford includes sales of its electric F-150 Lightning within the total F-Series sales, simplifying the brand strategy and capitalizing on the strong reputation of its traditional models.
This approach also allows automakers to add EV sales to the overall sales figures of their established models, providing a more cohesive brand identity and streamlining the transition to electric powertrains. The strategy reflects a broader industry trend towards flexible vehicle platforms that can support various powertrains, enabling manufacturers to adapt to changing consumer demands more efficiently.
Meanwhile, GM is handling models like the all-electric Cadillac Escalade IQ more like a conventional ICE-based model, identifying the model as all-electric with the “IQ” moniker, while retaining the Cadillac Escalade brand that’s well-known among consumers.
As the automotive industry continues to evolve, this integration strategy may become the norm, simplifying the market for consumers and manufacturers alike. This shift signifies a maturing of the electric vehicle market, where EVs are no longer seen as niche products, but as mainstream options within the broader automotive landscape.
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Comments
Name changes amount to rearranging the deck chairs on the Titanic. We need price adjustments, better batteries, faster charging, new technology, etc.
I think this person/people saying this are smart. The more integrated they make the EV’s, the more easily customers will transition. I for one don’t want to drive something that looks stupid just because it’s an EV. Like I’ve said before, if I could walk into a dealership and look at a Malibu EV next to the ICE Malibu while not being able to tell which was which outside of a small “EV” decal on the back, that would be perfect.
This shouldn’t be any different from in the past where a customer walks into a dealership where you could buy (as an example) your Buick with a gas V6, gas V8 or diesel V8. The sales staff should be able to walk customers up to the row of vehicles and say gas or EV?
The Blazer ICEV/EV comes to mind on your comment about not being able to tell the difference at first glance.
I agree with dropping the sub brands.
I actually think GM is doing this mostly right (the branding). When EV’s become more popular they should be in a good position. But they have to offer consistent product and not cancel entire model lines because of a bad quarter.
The “Stupid” part of the GM branding is the lack of consistency. They already have newly named Electric vehicles that were not “based” on a legacy nameplate. Then, the ones that do have a legacy nameplate were all denoted with EV until they went to Escalade and decided IQ. It is reminding me of the Cadillac naming Cluster they created. It was go to Letters and numbers like competitors, which gave us XT4, XT5, XT6 as well as CT4, CT5, CT6. Then it was add the displacement number of 350, 400, etc on top of that. Then start making EV’s and give them names like Celestiq, Lyriq, Optiq, and Vestiq. So, it should really be Escaladiq? Just pull some more tiles from the Scrabble bag.
Luther: You hit the nail on the head. You don’t see Toyota, Honda constantly changing names and this is why they can sell so many of those same cars/SUV’s over the years. People know what they are looking at and looking for and they can go in and see it. Ex: Camry, Civic, Accord, Rav4.
GM had been playing these stupid name games way too often. I’ve said this many times. Walk up to most any driver and ask them what an Eldorado is and most will know. Ask those same people what a CT4 is and you will get a blank deer in the headlights look. They truly need to find something that works that people like and stick with it.
I guarantee nearly no one under 40 knows what an Eldorado is but can pretty easily identify a CT4 (due to the Vs and Blackwings).
For years folks on this site have whined and griped about Cadillac not using real names. It’s obvious that’s what the company is now doing. The alpha numeric numbers are being phased out in the EV portfolio.
Optiq = XT4
Lyric = XT5
Vistiq= XT6
I suspect these same names will remain if the company changes course and continues with ICE models in the future.
Just one dude’s opinion here. 😉
I have been stating for years that Legacy are shooting themselves in the foot with these new EV specific names.
As an example, nobody knows what iD.3 and iD.4 are but pretty much every knows the Golf and Tiguan.
I hate the new naming structure of the EV Cadillacs. Extremely lame.
Hopefully Buick and GMC follow Chevrolet and use their current nameplates!!!
The problem with GM’s naming strategy is that the EV versions are completely different vehicles than the ICE counterparts – such as the Blazer, Escalade, etc. The EV versions tend to be newer platforms and offer newer features.
So if you prefer an ICE Blazer, you get an older model than the same branded EV Blazer. This gets confusing for the consumer and disadvantages people who still want ICE vehicles.
That’s the whole point of having a dedicated EV platform. Otherwise, you get compromises.
The issue is not that the EV’s are different than the ICE vehicles, but rather that the names are the same.
I can’t understand why this story talks about the F150 Lightning and Escalade IQ, but ignores the Equinox, Blazer, Silverado, Sierra and Hummer EVs. So yes, GM is using their existing vehicle names for their EVs.
The only thing GM is getting rid of is the 3 letter names for Cadillac.