European auto brands still rule the roost

Mercedes-Benz has been named the world’s most valuable auto brand while Ferrari takes the prize as the world’s strongest automotive brand in Brand Finance’s latest annual report. The valuation list is different from the one published by Interbrand, which put Mercedes in the number 2 spot in its last valuation report, behind only Toyota. The German automaker’s spot atop Brand Finance’s report was largely achieved on the back of a 24-percent year-on-year growth to US$43.9 billion.

Mercedes, Toyota, and BMW Top the List of Most Valuable Brands; Ferrari, Porsche, Jaguar the Strongest
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It is interesting, though, that Mercedes and Toyota switched places in Brand Finance’s report compared to the version released by Interbrand in November 2017.

Even if you re-arrange the names on top of both lists, it still wouldn’t matter because most of the companies in it are some of the biggest automotive brands in the world. It is interesting, though, that Mercedes and Toyota switched places in Brand Finance’s report compared to the version released by Interbrand in November 2017. But the German automaker slightly made it to the top spot, nipping Toyota’s $43.7 billion brand value. BMW comfortably took third place with a brand value of $41.8 billion while Volkswagen came in fourth, well behind the top three placers with a brand value of $33.7 billion. The German auto giant does have the spot all to itself because fifth place Honda is nowhere near it. The Japanese auto giant came out with a brand value of $22.1 billion. Interestingly enough, Tesla reported the biggest year-on-year growth among all automakers, registering a 106-percent growth in 2017 to $5.7 billion in brand value. That was good for the 19th spot on this list.

If you’re wondering what kind of approach Brand Finance uses in determining these brand values, the company said that it uses the Royalty Relief approach, a brand valuation method compliant with the industry standards set in ISO 10668. The specific method involves “estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ understood as a net economic benefit that a licensor would achieve by licensing the brand in the open market.”

2014 Ferrari LaFerrari Exterior AutoShow
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In that scorecard, Ferrari pulled in a 91.5 BSI score, easily beating runner-up Porsche, which posted an 87.5 BSI score.

In terms of being the “strongest” automotive brand, nobody could compete with the Prancing Horse from Maranello. The Italian automaker scored the highest Brand Strength Index (BSI), which itself is calculated using a balanced scorecard of metrics that assess marketing investment, stakeholder equity, and business performance. In that scorecard, Ferrari pulled in a 91.5 BSI score, easily beating runner-up Porsche, which posted an 87.5 BSI score. Proving that its brand revival is legitimate, Jaguar finished third with a BSI score of 86.9, edging out BMW, which finished fourth with a BSI score of 85.6. Aston Martin rounded out the top five placers with a BSI score of 85.3, beating out Volkswagen by the slimmest of margins. The German automaker finished sixth by a hairline with a BSI score of 85.2. Surprisingly, SEAT finished seventh place with a score of 84.3, higher than more established luminaries like Bentley (83.3), Toyota (82.9), and Renault (82.8).

References

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Read more Mercedes-Benz news.

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Source: Brand Finance

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