By Wolfgang Philipp

Published in February 2024

1-Minute Automotive Brand Strategy

The Untapped Superpower of Traditional OEMs

The Untapped Superpower of Traditional Brands
© Photo by Simone Pellegrini / Unsplash

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Electric mobility, autonomous driving, and digitization reshuffle the cards in the automotive industry.

Suddenly, newcomer brands drive innovation.

Key components like the battery come from third parties and eat up margins.
Proprietary software – the hoped-for new profit driver – turns out to be a bumpier
road than suspected.

Above all, technology no longer differentiates brands: Every OEM can build an electric 1000+ horse power, 500+ km range, 5-star crash-test rated model now.

Third-party suppliers and contract manufacturers provide the leading

In the electric era, technology can be a rational show stopper (if an OEM doesn’t meet the new standards) but it’s no longer an emotional key differentiator like unique engine configurations in the petrol era.

What’s more, commoditized technology is driven by price – an impossible disadvantage for traditional OEMs manufacturing in high-cost countries.

Technology no longer differentiates brands: Every OEM can build an electric 1000+ horse power, 500+ km range, 5-star crash-test rated model now.

But traditional OEMs have an untapped superpower: their brands

Traditional brands have built up priceless heritage over decades.

Their legacy transcends technology.

Their meaning is an abundant source of themes and stories, providing a coherent experience platform for their products.

This brand experience is the new emotional key differentiator – creating value beyond commoditized mobility.

A compelling brand experience is the profit driver for OEMs in the new era. It differentiates their brands on a holistic level. It enhances customer value instead of decreasing prices. It generates new revenue streams on top. And – it builds brands instead of exploiting them.

Thank you for reading 1-Minute Automotive Brand Strategy!

If you want to learn more on this topic, read our article Car Brand Positioning in a New Era of Mobility.

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PHANTASIA is a brand strategy consultancy for the automotive and motorcycle industry. We help automotive brands find their meaning in a new era of mobility.


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