BMW
...ce and has initiated the studio culture in which cognition prevailed over debate [5],’I can see but I can’t hear’. When from 1923 on the different GM divisions reduced cost by sharing components [6] it was full circle. 2.2 Modern history Recent decades in the automotive industry have been dominated by mergers, takeovers and partnerships, resulting in a limited number of car companies, each with a portfolio of brands to strategize, rather than a single one. Predictions on the remaining number of car companies vary from 5 to 7 [7]. For car companies this introduces a major new challenge introducing a corporate level above that of the strategic business unit (the brand). Rather than managing a sole brand identity they need to manage a brand portfolio. In doing so they are not only to compete with other brands; they must also create supplementing identities within their own portfolio so that they don’t cannibalize amongst their own. Especially when former competitors are included in the company an identity diversification strategy is crucial. In addition the ‘identities portfolio’ must, arguably, correspond with that of identified competitors. 3 The novelty of brand portfolio management at this scale for most of these companies (including the Americans who have, in the mean time, replaced their brand design strategies by ‘batch-branding’) resulted in strategies that were often doubtful from the beginning and have already resulted in sales drops and panic strategies. In the mean time the styling process and culture have barely changed. Changes that did occur such concerned with logistics (Kaizen [8]) or the reduction of cost and development lead times (simultaneous engineering, concurrent engineering and product data management) and were mainly IT driven. They contributed little to nothing to the intellectual contents of the profession. 3 AUTOMOTIVE DESIGN EDUCATION At the Faculty of Industrial Design of Technical University Delft, Automotive Design is a popular elective. It builds on technology classes as well as developing tacit skills, from the vision that co-existence and fusion thereof are crucial to the final result. The common denominator being the understanding of why and how the relationship between automotive technology and styling are mutually dependent in the design of comprehensive successful cars. The course addresses a wide range of aspects that are crucial to understanding automotive design. Subjects vary from history, automotive engineering, aesthetics, sustainability and branding to design processes and future cultural, social and technological developments. Students must become familiar with the effects that all of these aspects have on plastic expression in automotive design and they will develop the skills required to visualize them. The design process as educated is structured and involves application of all relevant subject, which if applied consistently back and forth, leads to a design that expresses the original intend. Insight in general parameters such as vehicle dynamics, aerodynamics must be the bases for developing automotive concepts. The history of car styling and automotive engineering form a lexicon to which new design may be related. Next to that, due to development throughput times, a long-term strategic vision is essential. Vision should not be solely based on innovative technologies but should start from cultural and social developments as well as brand identity. Developing a long-term vision provides a leitmotiv and assessment criteria for qualitative requirements, reflected in the car’s character and guiding quantitative requirements. 4 RESEARCH Research plays a fundamental role in automotive design education. The development of a lightweight car, DutchEVO, has been chosen in 1999 as the research carrier in an extensive research program involving the faculties of Aerospace Engineering, Design Engineering and Manufacturing, Geosciences and Industrial Design. The car, being the most ubiquitous, and arguably the most dominant, visual form of the last century [9], Figure 1: Delft Automotive Styling Process 4 allows combines a vast number of quantitative technologies with qualitative emotional values. DutchEVO is a 400 kg. 4 seat car for urban regional use. The research addresses, amongst others, lightweight construction, new materials, life cycle analysis and recycling, new technologies and sustainability in the widest possible sense. A wide range of research findings is being introduced into automotive design education. The foundation of automotive styling research lies in an extensive research program in which, next to technology and form and automotive experience research, business models are being developed for automotive branding strategy analysis, competitive analysis and strategy formulation: 4.1 Branding analysis model The Branding Model is being developed to be able to identify, analyze and design automotive branding strategies [10]. The model contains three dimensions in which, by cognitive analysis, on current and past cars, cars are positioned in the model. Strategic analysis of both the brand and its competitors allows to mark the direction in which a brand is moving and provides feedback for competitive strategy formulation. The two dimensions in identifying individual brand analysis are time (vertical) and model range (horizontal). The weight of the branding by design factor is determined by the level to which a car shows 1) family resemblance to it’s predecessor and 2) the level to which it disqualifies the predecessor in terms of visual ageing. Horizontally (the model range) the branding factor is determined by family likeness between various models of a brand at one point in time. Four basic strategies may be identified. The third dimension of the model is the brand portfolio, which allows analyzing and strategizing the brands as complementary, allowing for a long-term diversification strategy. 4.2 Hierarchic styling analysis model In order to assess automotive styling on its strategic merits it is important to understand how and where car styling links to strategy. A cognitive hierarchy identifies six levels in automotive form, which can be linked to the three strategy levels in an organisation [11]. The strategic level to which a styling level is linked is a strong indicator towards the opportunity to create a substantial differential advantage over competitors, and the effect on the long-term characteristics of the organization [12]. The hierarchy levels from high to low: Figure 3: global view, vertical branding Figure 2: DutchEVO1:5 scale 5 • Strategic level. This level is not merely based on cognitive research into a specific car, rather also includes other cars, and may affect the automotive environment in a larger context. Strategic choices concern sharing strategies (platform, parts), corporate branding strategies and global technology choices. • Volume arrangement. This identifies not only the number of boxes (sedan, hatchback) but also the relation between global measures, e.g. overhang and visual features. The base for volume arrangement is the platform of a car (floor panel and firewall), the technical building blocks (propulsion, suspension) and furthermore defined by the package. • Surface treatment. This is the global styling approach of body panels, the usage and the application of styling features and baroque elements. This level of the styling model is largely independent of the levels above. In practice this is at operational level but our case will show that communication at corporate level is mandatory. • Detail design is concerned with the detailing and defines shape and appearance of small parts and features; body parts (air inlets) and materials (light units, grill). • Colour and trim is the level most directly related to fashion. It is the level where the buyer has most influence in the appearance of his car and where for a large part the visual durability of an individual car is being determined. Next to the hierarchy a range of analysis tools may be included dependent on the objective of the moment. An obvious example is analyzing the weight of a competitive sustainable advantage of e.g. technology choices, as our case example will show. The higher in the hierarchy a decision is made, the longer a sustainable advantage may be of benefit. In terms of risk assessment it will also give insight to the affect in case the wrong choices are made. In this way various models may be linked to the hierarchy depending on the objective at hand. 5 CASE STUDY The Volkswagen group is one of those companies facing the brand portfolio situation, and currently facing sales problems for the Volkswagen brand. The portfolio contains four volume brands, which are subject to the study. Audi has been fully Volkswagen owned since 1971 and is positioned as the ‘higher’ brand, competing with BMW and Audi. In 1987 Volkswagen took a majority share in Seat and acquired full ownership in 1990. Since 1991 Seat has been slowly replacing its (Fiat based) model range by Volkswagen technology based models. Seat’s mission within the group is to be positioned as Volkswagen’s ‘Latin brand’ aimed to compete e.g. with Alfa Romeo [13]. Since 1999 Volkswagen owns a growing majority share of Skoda. Skoda’s mission is to compete with the ‘northern’ brands such as the four-wheel segment in Europe’s mountain countries (e.g. Subaru) and Volvo. Both Seat and Skoda had a cheap and low quality image. The chosen strategy therefore allowed both brands to literally advertise ‘Volkswagen quality’. A strategy that, quite predictable, was very successful in placing both brands on the map. However, equally predictable in author’s view, after a few years both brands began to cannibalize their mother. Pote...