Earlier this year, the VeeDub board approved a request by Porsche to obtain 51-percent of the company for some $15.73 billion, which would give it a majority stake. Before the house that Ferdinand built could complete its acquisition, the European Commission required it to make one last purchase, which took place in June of this year. Finally, the EU has granted its permission for the buyout.
Do you think WV will disappear in the future? Will Porsche lead to the demise of VW brand in your mind?
Quoting from [ben_ben]:Earlier this year, the VeeDub board approved a request by Porsche to obtain 51-percent of the company for some $15.73 billion, which would give it a majority stake. Before the house that Ferdinand built could complete its acquisition, the European Commission required it to make one last purchase, which took place in June of this year. Finally, the EU has granted its permission for the buyout.
Do you think WV will disappear in the future? Will Porsche lead to the demise of VW brand in your mind?
However, many new players in the market for the cheap cars, countries are producing them, who were not in the International scene before, such as India and China are producing cars that is much cheaper than the Europeans and the Japanese.
The real issue is the fuel economy, and environmental friendly engine.
SS
Tijit Pte Ltd
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Quoting from [ben_ben]:Earlier this year, the VeeDub board approved a request by Porsche to obtain 51-percent of the company for some $15.73 billion, which would give it a majority stake. Before the house that Ferdinand built could complete its acquisition, the European Commission required it to make one last purchase, which took place in June of this year. Finally, the EU has granted its permission for the buyout.
Do you think WV will disappear in the future? Will Porsche lead to the demise of VW brand in your mind?
Why would they spend billions to buy a brand name image and then destroy it?
Quoting from [germex]:
Why would they spend billions to buy a brand name image and then destroy it?
Grandpa,
Now you surprise me once again with something which is in the lingo franca of the marketing people - BRAND NAME.
You are right to mention branding, but the market of today has changed. Decades ago, you did not hear of DELL Computers, only TOSHIBA, and IBM, COMPAQ, and so on. Towards the last century, DELL made up to the top of the list from absolute zero branding. So, we can conclude that Brand is not the absolute matter in market share and sales, it is the buyer's market, and companies have to serve the customer according to their needs, wants and desire, by giving them a reason to buy their product.
There is a shift in the paradigm brought by the INTERNET. The Power is now given to the buyers, it is no longer the seller who determines the 4 Ps of Marketing Mix. The 4 Ps meaning: Price, Product, Promotion and Distribution or Place.
Too much about marketing to put all in this post, but suffice to say, the market has downplayed branding as the major decision making persuading factor to make the customer's wants into a need, and a desire to buy the product. Customers are now more informed, and they can access the product at its source, and the role of middle companies doing trading, imports and exports have significantly evolved into somewhat more of value-added and logistic role. However, we do not write-off branding, as this will be the cherry on the cake, as to influence final decision, if all the other criteria are met.
We must know the psychology of the consumer, the criteria or conditions which are mandatory and which are optional. These criteria changes over time and situations. For example during these days when Gas prices are at US$4 per gallon, the mandatory criteria will be to a fuel economy vehicle. Gone are the days of the fuel guzzlers and large engines, which only drives a 80kg person from point A to point B.
Street
Tijit Pte Ltd
Motto: Digital is our name : Portable is our game
Tijit provides service and supply to Marine Shipping Industry both here in Singapore and abroad focused on portable instruments.
We provide Customer Service for...
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In some areas brand names still matter, and you seem to agree. Cars are a good example for that. Some people want more than just transportation, and then they buy BMW; Mercedes, Maybach, Rolls Royce, etc.
It cost a lot of money to establish their fame, and no investor has any interest in destroying that. In fact, Porsche invested in Volkswagen because of its good name. But that I'm only saying in reply to the original question of this topic - you already know that.
Or does anyone think they would have invested even a penny in the brand "peanut cars"? So the brand name was the major reason Porsche was interested in investing. Therefore the demise of the brand name "Volkswagen" is out of question.