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In the automotive industry, rebadging (also known as badge engineering, an intentionally ironic misnomer in that little or no actual engineering takes place) is a form of market segmentation used by automobile manufacturers around the world. To allow for product differentiation without designing or engineering a new model or brand (at high cost or risk), a manufacturer creates a distinct automobile by applying a new "badge" or trademark (brand, logo, or manufacturer's name/make/marque) to an existing product line.
The term originated with the practice of replacing an automobile's emblems to create an ostensibly new model sold by a different maker. Changes may be confined to swapping badges and emblems, or may encompass minor styling differences, as with cosmetic changes to , taillights, front and rear fascias, and even outer body skins. More extreme examples involve differing engines and Powertrain. The objective is "to spread the huge development costs of a new vehicle over as many cars as possible". An example is General Motors' rebadging of the Chevrolet Camaro as the Pontiac Firebird, a successful model from the 1960s through to the 2000s. In most cases, consumers are interested in each brand's focus "on the unique elements of styling and driving characteristics". Some cars would not be marketed without the cost savings that are obtained from this practice, and carmakers can develop many "different models – all wearing different badges – off the one platform".
In several countries including Japan, manufacturers often use the phrase "OEM supply" or "OEM-supplied" to denote vehicles that are a rebadged model from or for other manufacturers.
Although car platform can often involve rebadging and rebranding, it can extend further, as the design may be used across multiple configurations. For example, a single platform may underpin a sedan, hatchback, or SUV/CUV body designs.
Automotive industry rebadging can be compared with white-label products in other consumer goods industries, such as consumer electronics and .
"Probably the industry's first example of one car becoming another" occurred in 1926 when Nash Motors' newly introduced smaller-sized Ajax models were discontinued in 1926 after over 22,000 Ajax cars were sold during the brand's inaugural year. The chairman and CEO of the company, Charles W. Nash, ordered that the Ajax models be marketed as the "Nash Light Six", Nash being a known and respected automobile brand. (1977). 9780671224851, Simon and Schuster. ISBN 9780671224851 Production was stopped for two days so Nash emblems, hubcaps, and radiator shells could be exchanged on all unshipped Ajax cars. Conversion kits were also distributed at no charge to Ajax owners to transform their cars and protect the investment they had made in purchasing an automobile made by Nash.
Starting with the beginning of General Motors in 1909, chassis and platforms were shared with all brands. GMC, which historically was a truck builder, began to offer its products branded as Chevrolet, and vehicles produced by GM were built on common platforms shared with Chevrolet, Oakland, Oldsmobile, Buick, and Cadillac. Exterior appearances were gradually upgraded between these vehicle brands. This was partly because all bodywork was provided by Fisher Body which was bought by GM in 1925, and the introduction of the Art and Color Section in 1928, directed by Harley Earl. For the 1958 model year, GM was promoting its fiftieth year of production and introduced anniversary models for each brand; Cadillac, Buick, Oldsmobile, Pontiac, and Chevrolet. The 1958 models shared an almost identical appearance on all models for each brand and made special luxury models with a shared appearance; Cadillac Eldorado Seville, Buick Limited Riviera, Oldsmobile Starfire 98, Pontiac Bonneville Catalina, and the Chevrolet Bel-Air Impala.
A later example was Wolseley Motors after it was bought out by William Morris. After World War I, "Wolseley started to lose its identity and eventually succumbed to badge engineering." This was repeated with the consolidation of Austin Motor Company and the Nuffield Organization (parent company of Morris Motors) to form the British Motor Corporation (BMC). The rationalization of production to gain efficiencies "did not extend to marketing", and each "model was adapted, by variation in trim and accessories, to appeal to customer loyalties for whom the badge denoting the company of origin was an important selling advantage ... 'Badge Engineering', as it became known, was symptomatic of a policy of sales competition between the constituent organizations". The ultimate example of BMC badge engineering was the 1962 BMC ADO16 which was available badged as a Morris, MG, Austin, Wolseley, Riley Motor and the upmarket Vanden Plas. A year earlier, the Mini was also available as Austin, Morris, Riley, and Wolseley – the latter two having slightly bigger boots.
In another example, the same model is rebadged when it is sold in different regions and markets. In Australia, during the 1980s and 1990s, the Button car plan required imported and Toyotas to adopt Ford and Holden (GM) nameplates. In the United Kingdom, Opel-produced vehicles are marketed under the Vauxhall brand; when sold in the United States, Opels were marketed as Saturns, Chevrolets, and Buicks. Conversely, the Australian Holden brand was never sold in North America, but the Holden Monaro and Holden Commodore were sold under the Pontiac (Pontiac GTO, Pontiac G8), Chevrolet (Chevrolet SS), and Buick (Buick Regal Sportback/Buick Regal TourX) nameplates.
During the late 2000s and early 2010s, the Volkswagen Routan was a rebranded version of the Dodge Grand Caravan, supplied as Volkswagen sought to re-enter the North American minivan segment without the investment of federalizing its design. Assembled by Chrysler with a Chrysler powertrain, the Routan received its own styling and content features as well as a standard "sportier suspension and steering".
Toyota marketed the Toyota Corolla in Japan exclusively at Toyota Corolla Store locations; at Toyota Auto Store locations, it was named the Toyota Sprinter. Nissan sold the Nissan Cedric through its Nissan Bluebird Store network, with the identical Nissan Gloria through the Nissan Prince Store network. Honda previously marketed the Honda Accord through multiple sales networks, marketing the Accord through the Honda Clio network and renaming it as the Honda Vigor for Honda Verno locations (conversely, the Vigor was renamed the Honda Inspire for the Clio network).
The practice of producing multiple versions of the same vehicle would eventually lead to distinct vehicles produced for export. In North America, the Toyota Sprinter was marketed as the Chevrolet Nova (and the Geo Prizm that replaced it). The Honda Vigor and Inspire were marketed as the Acura Vigor and TL; Nissan sold the Gloria in the United States as the Infiniti M.
Another example was the cooperative work between Volkswagen and Ford to develop the VW Sharan, Ford Galaxy, and SEAT Alhambra.
Badge engineering may occur when one company allows another, otherwise unaffiliated, company to market a revised version of their product through an OEM deal, as with Volkswagen marketing a modified version of the Dodge Caravan and Chrysler Town and Country minivans as the Volkswagen Routan (2009–2014).
Another example was the joint venture of Mitsubishi and Chrysler that resulted in vehicles produced by Diamond-Star Motors that were marketed under various nameplates from 1985 until 1993.
GAC Toyota has produced the Levin as a twin model to the FAW Toyota-built Toyota Corolla and the Wildlander as the alternative to the RAV4. Honda awarded several models to two joint ventures, which spawned the Breeze from the original Honda CR-V, the Honda Elysion from the Odyssey, the XR-V from the Honda HR-V, and others.
In other cases, foreign manufacturers may also rebadge a model developed by its partner, sometimes for exports to other markets. Examples include the second generation Chevrolet Captiva which is an export version of the Baojun 530 made by SAIC-GM-Wuling, or the Ford Territory, a reworked version of the Yusheng S330 developed by Jiangling Motors.
Another example is the Dongfeng Fengdu MX6, which was produced after the near-identical Nissan X-Trail (T31) production had ended, and the Maruti Suzuki Zen Estilo, which is based on the then-recently discontinued Suzuki MR Wagon. The advantage of this strategy is amortized tooling costs, which means the vehicle can be produced at a higher margin of profit (or a lower price, or both).
An example of this is that Ford Motor Company marketed its mainstream Ford Fusion mid-size sedan as the Lincoln MKZ; the Ford Expedition SUV is sold as the Lincoln Navigator. A more controversial example was the Aston Martin Cygnet, a rebadged version of the Toyota iQ city car (intended to comply with EU emissions regulations). While fitted with model-specific trim and a luggage set, the Cygnet nearly tripled the price of the iQ. Alternatively, VW Group under Ferdinand Piëch used the reverse of this in some circumstances, engineering the more luxurious model first and then remove features for models from less prestigious marques. Examples include the Lamborghini Gallardo/Audi R8 and the Audi A4/Volkswagen Passat.
The Volkswagen Group uses platform sharing as its business strategy to improve its profitability and growth. For example, Audi uses components from their more pedestrian counterparts, sold as Volkswagen mass-market brands. As an effort to place Audi as a "premium" marque, Volkswagen often introduces new technologies in Audi-branded cars before fitting them to mainstream products (such as the Direct-Shift Gearbox). In production, platform sharing is used extensively, with the modular MQB platform underpinning a range of vehicles from the Audi A1 to the Volkswagen Atlas. The previous D platform of the 2000s was used for the Volkswagen Phaeton and Bentley Continental GT (built in steel) and the Audi A8 (built in aluminum).
In the Japanese automotive industry, platform sharing has expanded model offerings in North America. While the initial Lexus LS was developed specifically for the American market, the later Lexus ES has shared a platform (but not a body) with the Toyota Camry (since 2013, the Toyota Avalon, itself also based on the Camry). Exclusive primarily to North America, Honda uses a common platform to produce the American version of the Odyssey minivan, also underpinning the Honda Pilot and Honda Passport SUVs, the Acura MDX CUV, and the Honda Ridgeline mid-size pickup truck.
Through the 2000s, the American Big Three automakers reduced their brand footprint by closing or selling underperforming brands. After 2001, Chrysler discontinued its Plymouth brand (following the closure of Eagle in 1998). In response to the late 2000s recession, Ford ended its ownership of Jaguar Cars, Land Rover, Aston Martin, and Volvo Cars; in 2010, Mercury was closed by Ford. General Motors underwent several brand revisions; following the discontinuation of the Geo sub-brand of Chevrolet in 1997, Oldsmobile was closed after 2004 (the oldest American nameplate at the time). Following its 2009 bankruptcy, GM closed Pontiac, Saturn, and Hummer in 2010; Saab was sold (eventually leading to its demise). GM sold its European Opel and Vauxhall brands in 2017 to PSA (now Stellantis).
To expand its footprint in the subcompact segment, the H-body Chevrolet Vega platform was used for the 1975 model year for newly styled variants sold as the Chevrolet Monza, Buick Skyhawk, and Oldsmobile Starfire followed by the 1976 Pontiac Sunbird. Similarly, to the X-body vehicles, the H-body subcompacts shared common bodies across all four divisions with differing grille, lamp, and body trim variations.
In 1981, GM lost a 1977 lawsuit related to consumers (who purchased 1977 Oldsmobile Delta 88s equipped with a Chevrolet small-block engine instead of the Oldsmobile V8 engine). At the time of production, GM had downsized its full-size model lines in preparation for another oil crisis and had increased production of V6 engines as the intended standard engine, underestimating consumer demand for Oldsmobile V8 engines. To accommodate the increased market demand, nearly 60% of Delta 88s were equipped with a Chevrolet 5.7 L V8 for 1977. The lawsuit was filed by the state of Illinois, claiming GM falsely advertised the vehicles. In 1981, GM settled the lawsuit with the vehicle buyers and discontinued their company-unique policy of division-specific engines. Into the 1990s, GM advertising featured a disclaimer stating '"Oldsmobiles (or any other GM division) are equipped with engines manufactured by various GM divisions, subsidiaries and affiliates worldwide."'
For the 1977 model year, Lincoln released the Lincoln Versailles to match the debut of the Cadillac Seville. In contrast with the Seville (sharing its chassis underpinnings both the Chevrolet Nova and the Chevrolet Camaro), the Versailles shared nearly its entire body with the Mercury Monarch (itself a counterpart of the Ford Granada); the model line also replaced the previous Mercury Grand Monarch Ghia. Outsold by the Seville nearly three-to-one, the Versailles sold far under sales predictions and was discontinued early in the 1980 model year.
For 1982, Cadillac released the Cadillac Cimarron to compete against compact European-brand Executive car. The smallest Cadillac produced since the 1900s, the Cimarron used the chassis of the GM J-body four-door sedan. Developed and brought to market less than a year before the J-body was released, Cadillac was left with almost no time to distinguish the Cimarron from its divisional counterparts from Chevrolet, Buick, Oldsmobile, and Pontiac. Though sharing nearly its entire exterior with the four-door Chevrolet Cavalier, the Cimarron was priced nearly twice as high as its counterpart. Additionally, J-body vehicles from other divisions could be equipped nearly identically to the Cimarron for a lower cost. Though the model line closely matched its Buick Skyhawk and Oldsmobile Firenza counterparts in sales, the Cimarron was discontinued following the 1988 model year.
Though the Lincoln Versailles was largely forgotten after its 1980 discontinuation (its role superseded by the downsizing of the Lincoln Continental for 1982), the Cimarron would cause extensive damage to the Cadillac brand, as its market share declined by almost 50% from 1980 to 1998. As of current production, neither Lincoln nor Cadillac has marketed a compact-segment car. Through the use of rebranding, Lincoln produced the mid-size Lincoln MKZ (sharing its doors with the Ford Fusion; as part of its 2013 redesign, no other exterior panels); Cadillac rebranded the Opel Omega B as the Cadillac Catera as its first mid-size car, but replaced it, eventually moving towards platform sharing with other divisions.
Following the retirement of the AMC Eagle in early 1988 (derived from the 1971 AMC Hornet), Eagle established its product line with the introduction of the 1988 Eagle Premier and Medallion (developed by Renault prior to the sale of AMC). To expand the product range beyond the two sedans, Chrysler sourced vehicles from Mitsubishi, introducing the 1989 Eagle Summit (Dodge/Plymouth Colt) and 1990 Eagle Talon (Mitsubishi Eclipse). In contrast to the Jeep range, Eagle was marketed towards consumers interested in imported vehicles.
For 1992, the Eagle Vision full-size sedan replaced the Premier, becoming the first Eagle-brand vehicle developed by Chrysler. Positioned between the Dodge Intrepid and Chrysler Concorde, the Eagle Vision shared most exterior trim with the Concorde. It was the only Chrysler LH car offered exclusively with a five-passenger interior.
Coinciding with the 1998 Daimler-Chrysler merger, the Eagle brand was discontinued; the singular Jeep brand was integrated as part of Chrysler or Dodge dealership networks. The Chrysler 300M was originally developed as a second generation of the Eagle Vision; following the discontinuation of Eagle, the vehicle continued into production as a Chrysler model, adopting a slightly restyled grille, Chrysler badging, and a Chrysler interior.
The Lexus ES250 is a four-door sedan derived from the V20 Toyota Camry. Though visibly similar to the Camry introduced for 1987, the ES250 was a rebranded Toyota Camry Prominent/Vista; a model developed for Japan, the Prominent/Vista (dependent on sales network) is a four-door pillared hardtop sedan with a slightly lower roofline and restyled body panels. Along with the change to left-hand drive, the ES250 adopted an interior similar to the larger LS (along with similarly styled wheels and taillamps).
The Infiniti M30 is a two-door notchback coupe derived from the Nissan Leopard (a model never sold in North America). Along with the coupe, Infiniti sold the M30 as a two-door convertible (converted in the United States). With the exception of its badging and its dashboard (sourced from the left-hand drive Nissan Skyline), the M30 differed from the Leopard primarily in its steering wheel location.
Intended largely as placeholder models, the ES250 and M30 were largely overshadowed by their companion flagship sedans. Following the end of the 1992 model year, both models were withdrawn (as their Japanese counterparts had ended their model cycles). For 1993, the ES250 was replaced by the ES300; while again sharing its body with a Japanese-market Toyota (Toyota Vista/Windom) and its chassis and engine with the Camry, the ES300 shared no resemblance to the American-market Camry. Infiniti moved away from a two-door coupe entirely, replacing the M30 with the four-door J30 (Nissan Leopard J Ferie in Japan).
Among the post-war cars, the Fiat 124 designed and built by Fiat, Italy was licensed to various other manufacturers from different countries. It became a dominant car in many Eastern Europe and West Asian countries.
The Morris Oxford Series IV built by Morris Motors of England in 1955 would become Hindustan Ambassador in India and was manufactured until 2014. Another example of this is the British Hillman Hunter, which was license-built in Iran as the Paykan, as well as Naza, building vehicles under license from Kia Motors and Peugeot (Naza 206 Bestari).
A similar example of licensed badge-engineered products would be the Volga Siber, a rebadged version of the Chrysler Sebring sedan and the Dodge Stratus sedan produced in Russia from 2008 until 2010.
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