The rapid growth in sales of electric cars is causing many brands to see the opportunity to open their lines of business. The industry in general considers the need to divide its brands, on the one hand thermal vehicles and on the other totally electric units. Some manufacturers do not have these doubts. The Stellantis Group, Volkswagen and Mercedes declare that they will not divide their ranges. Integrity is guaranteed, at least for now.
In recent months and years we have seen division movements within the industry. The acceleration in sales and the launch of new products has made us see new denominations and nomenclatures within each house. ID, EQ, Ioniq or Polestar are just an example. Sub-brands within brands that focus on 100% electric mobility. What at first should not be a big problem, for some manufacturers it represents a challenge that makes life difficult for them to be able to join the entire range in a single brand.
Manufacturers such as Ford have announced that they are dividing their businesses in two ways. On the one hand, vehicles with thermal engines. On the other hand, the 100% electric units. The “Model e” division will focus on electric-powered vehicles, while the “Ford Blue” division will lead the way in combustion models. This is just one example of what many brands plan to do in order to present themselves to specific audiences. A doubt that does not seem to have been sown in other brands such as Stellantis, Volkswagen or Mercedes.
as collected Automotive News, none of these three major producers seems to opt for a separation strategy. The French have not advanced any strategy in this regard. At the moment, as the financial director of the conglomerate, Richard Palmer, comments, Stellantis does not seek to separate its product lines, something that, on the other hand, would be tremendously complex. given the large number of brands within the set. For the French, there is currently no great benefit in making such a move.
Along the same lines, Herbert Diess, the CEO of the Volkswagen Group, points out. Thermal and electric models will coexist under the same emblem, although with particular denominations within each house such as iV in Skoda, ID in Volkswagen or e-tron in Audi. As we have already mentioned, the Germans’ plan is to obtain a higher profit margin for each electric car, while reducing the number of units produced. No lines or marks will be separated and everything will continue as before.
In Mercedes they have had a dilemma in this regard. While some voices affirmed the convenience of going their separate ways, the decision has finally been made not to separate the line of combustion models from the business matrix. Mercedes has an image and fame earned in more than 100 years of history and creating a brand only for electric models would not make sense. The EQ models will continue within Mercedes, although they will have to look for new names since there is a problem in terms of names and models.