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June 29, 2009

GM Struggles to Corral Popular Penske Naming With Saturn Brand

Today's Wall Street Journal reminds me of the fact that sometimes two big names can be a mixed blessing.

Here I am thinking of the Saturn and Penske combination that has been created by celebrity driver and businessman Roger Penske's Penske Automotive Group with its purchase of GM's Saturn brand name.

An upsurge in interest in Saturn cars by Penske fans has been initially seen as a result of the deal, but GM is currently asking the (very relieved) Saturn dealers not to trumpet the name too loudly lest it dilute the beleaguered Saturn brand. GM still has a major interest here, as they will still make the Aura, VUE, and Outlook for the next 2 years, but will discontinue the Astra and Sky.

Penske, for his part, might outsource production to Renault Samsung Motors of Korea. In addition, Penske has also hinted that he might introduce an electric car under the Saturn name.

Penske has already agreed to keep the Saturn "look," stating that it has a certain "brand value," which most everyone understands to have a very loyal following.

The key, I believe, is to not only to keep the look, but to go back to the integrity of the meaning behind the brand itself.

For example, Penske shouldn't do to Saturn what GM did to Saab. Essentially, Saab was made more boring by GM making it much less exotic and Swedish.

Consider, on the other hand, Range Rover, which has changed hands a few times (for better or worse), but still has its own unique brand equity.

The simple question the people at Penske should ask is this: would they create a "Penske" mid-range sedan? If the answer is no, they need to compartmentalize the names as much as possible.

Frankly, Saturn itself is a brand in rehabilitation after GM did its best to mainstream it.

Technorati Tags: Saturn, Saturn Brand Name, Penske, GM Branding, GM Brands

Posted by William Lozito at June 29, 2009 8:41 AM
Posted to Automotive | Brand Architecture | Brand Naming | Branding | Industry | Naming | Naming Rights

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