| Press Release - Embargoed 01:01 CET 05/03/14 The Slogan May Have Changed but the Car in Front is Still a Toyota The Brand Finance Auto 100, released today, is an annual study conducted by leading brand valuation consultancy Brand Finance. As the world’s biggest auto brands showcase their latest creations in Geneva, we put to them to the test to determine which are the most powerful and most valuable. Toyota has solidified its status as the world’s most valuable auto brand. Impressive growth of 34% means Toyota’s brand is now worth US $34.9 billion ahead of BMW (US$29bn) and Volkswagen (US$27bn). Looking ahead, Toyota must negotiate the potential pothole of a 1.9 million unit recall of its Hybrid Prius model and the resulting loss of consumer confidence. Toyota has faced similar challenges in recent years. While brand value took a hit in the short term, it also rebounded quickly, suggesting that Toyota’s brand is powerful and resilient enough to see it through the latest issue. Those already causing a stir in Geneva include Audi, which has just revealed its new TT. Its brand value is up 30% to US$7 billion. Jeep’s latest crossover model, whose name is yet to be confirmed, was leaked online recently. Its brand value is up to over US$2.5 billion. Brands valued for the first time include Maserati (US$693m), which presented its Alfieri coupe concept, Lamborghini (US$677m) which unveiled the Huracan, which will replace the outgoing Gallardo and Tesla (US$1.2bn) whose share price is soaring as it forges a reputation as perhaps the only credible electric car brand. Ferrari is again the world's most powerful auto brand, in fact the most powerful brand from any industry. It scores highly on a wide variety of measures on Brand Finance’s Brand Strength Index, from desirability, loyalty and consumer sentiment to visual identity, online presence and employee satisfaction. The exceptional AAA+ brand rating has been preserved thanks to the strategic decision to cap production at 7000, maintaining the brand’s exclusivity. As a result, despite a 4% fall in production last year, brand value rose 12% to US$4 billion. Ferrari’s latest branding coup is its involvement in the launch of the ‘CarPlay’ system, which integrates a user’s iPhone into an onboard display. This collaboration between Apple, the world’s most valuable brand (worth US$105bn) and Ferrari, the world’s most powerful, could be the start of the ultimate brand partnership. Unsurprisingly, German, Japanese and American owned brands dominate the table, accounting for 74% of the total US$388 billion brand value. France and Italy’s share of brand ownership is increasingly threatened by rising Asian manufacturers based in India, South Korean and China. Notable by its absence is the UK. The UK may be a leader in automotive technology, the base for eight Formula1 teams and the original home of brands now worth US$13.6 billion, but none of the world’s 100 auto brands are now British owned. Though foreign ownership may be a blow to national pride, much of the manufacturing, marketing and branding infrastructure has remained in the UK. Many auto brands of British origin are thriving. Land Rover (whose brand value is up 43% to US$4.3bn) Jaguar (up 58%) Mini (up 42%) and Bentley (up 27%) are finding huge success as aspirational brands in emerging markets and the US. Their success has boosted British industry, with production rising over 3% in 2013 and thousands of new jobs being created. Overall, the auto industry performed strongly last year, thanks to a combination of global economic recovery and increased demand in both the United States and Asia. The brand value of the top 50 brands rose by $55 billion to $346 billion, and the gross margins of the five biggest manufacturers are the highest they have been for 10 years. Brand Finance Chief Executive David Haigh commented, “The increasing market share of the biggest manufacturers coupled with a trend for joint ventures and alliances has resulted in vehicles that are mechanically more homogeneous. Consequently, brand will play an increasingly important role in shaping consumer preference over the coming years, not just for the likes of Ferrari, Lamborghini or Porsche but for mass market manufacturers too.” Bridgestone Tightens its Grip on Tyre Table The fortunes of the tyre industry are closely tied to those of the auto sector. Though lacking the glamour of Pirelli (brand value US$1.8 billion) with its headline sponsorships and sexy calendars, or the gravitas of Michelin (US$4.7 billion) with its respected guides, Bridgestone continues to be the world’s most valuable tyre brand. It has extended its lead with brand value growth of over a billion dollars, reaching a total of US$5.6 billion has had its brand rating upgraded to AA+, on a par with Michelin and ahead of Continental (AA) and Goodyear (AA-). The World’s Most Valuable Auto Brands
Click here to view the table online Brand Value Totals by Domicile and Country of Origin
The World’s Most Valuable Tyre Brands
Media Contacts Robert Haigh, Communications Director T: +44 (0)2073899400 M: +44 (0)7762211167 r.haigh@brandfinance.com David Haigh, Chief Executive T: +44 (0)2073899400 M: +44 (0)7885153725 d.haigh@brandfinance.com Note to Editors 2014 brand values are calculated in USD with a valuation date of 1/1/14 and 2013 values as at 1/1/13. For conversion to alternative currencies, 2014 brand values should be converted as per the exchange rate at 1/1/14 and 2013 brand values as per the exchange rate 1/1/13. Percentage brand value changes should be recalculated following currency conversion. About Brand Finance Brand Finance is the world’s leading brand valuation consultancy, with offices in over 15 countries. We provide clarity to marketers, brand owners and investors by quantifying the financial value of brands. Drawing on expertise in strategy, branding, market research, visual identity, finance, tax and intellectual property, Brand Finance helps clients make the right decisions to maximise brand and business value. ISO Compliance Brand Finance was one of the first companies in the world to be accredited to provide ISO 10668 compliant brand valuations. The ISO 10668 global standard provides a consistent, reliable approach to brand valuation that emphasises transparency and objectivity. Valuers must take all relevant financial, behavioural and legal information into consideration. Brand Finance would like to thank its partners, The Banker, Havas, BAV Consulting, Alexa, Bloomberg, Meltwater, VI360, CSR Hub and Novagraaf for the information they have provided to make our valuations of the world’s top brands ISO 10668 compliant. Explanation of Brand Finance’s Methodology Brands are probably the most valuable assets that companies own, driving demand and building relationships with customers and partners. Brand Finance calculates brand value by determining the royalties a corporation would have to pay to license its brand if it did not own it, known as the ‘royalty relief’ method. As well as a brand value, each of the 100 brands in the table is accorded a brand rating; a benchmark of the strength, risk and potential of a brand relative to its competitors, expressed as a letter code from AAA+ to D, similar to a credit rating. A detailed methodology of how the brand values are calculated can be found here and the results from last year’s study here.  |
Tuesday, March 4, 2014
The Slogan May Have Changed but the Car in Front is Still a Toyota
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