Volkswagen’s Naming Change For Electrical Automobiles Is A Big Deal

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Steve Hanley reported yesterday on Volkswagen’s new plan for the way it will title electrical automobile fashions, and it’s straightforward to think about this story simply gliding beneath the radar. Nonetheless, it’s actually an enormous deal. I used to be nearly to put in writing on the story after I noticed Steve had simply submitted his piece, but it surely warrants a number of articles, in my view.

I truly preferred Volkswagen’s ID naming conference tremendous sufficient. It was clear, had a sort of twenty first century vibe, and was straightforward to recollect. (Not like another EV names from different manufacturers….) Earlier on within the transition to EVs, and nonetheless finished at some manufacturers, tagging “EV” on to standard fuel automobile mannequin names acquired clunky and, extra importantly, typically made for a tough promote for the EV mannequin as a result of its price ticket was at all times a lot greater (and other people don’t take note of complete price of possession). It typically felt like firms not giving distinctive names to their EVs weren’t critical, not making an attempt to really promote them, and simply hoping the EV development went away — or delaying placing actual effort into it, a minimum of. Typically most significantly, the EV batteries and powertrains had been simply being shoved into our bodies that had been designed for inner combustion engine powertrains.

So, why would I be enthusiastic about this shift from Volkswagen?

Initially, Volkswagen has proven a dedication to a critical transition to electrical autos. It didn’t even cross my thoughts that the corporate would cease prioritizing this shift and be designing future fashions round ICE powertrains. That’s not what that is about.

Within the automotive world, although, many fashions have been round for many years. The variations immediately truly don’t have anything in widespread from the variations of the Nineteen Seventies, or virtually nothing, however they proceed as a result of individuals are hooked up to their recollections and favorites of the previous. Their automobiles are the second most costly or most costly purchases individuals make, in order that they care quite a bit about them, have important recollections of shopping for them and the place they had been at that time of their lives, and infrequently make them a lot part of the household that they even give them names. Leaning into that and utilizing these recollections to promote a brand new automobile to somebody could be fairly reliant on one thing so simple as the mannequin title.

Even when individuals aren’t that hooked up to their automobiles, getting used to one thing can matter quite a bit. Say that you just had a Volkswagen Polo or a Volkswagen Golf, it has no title since you’re not likely like that, however the automobile has at all times served you nicely and appeared like a great worth. Many individuals in that scenario simply need to purchase the identical mannequin once more. They don’t need to danger getting one thing not pretty much as good.

So, phasing out fashions that individuals are used to — just like the Polo, Passat, Golf — and changing them with soulless numeric names with little or no historical past is definitely a great way to lose prospects. Many individuals won’t really feel as snug shopping for a brand new mannequin, and can be extra open to purchasing one other “previous” mannequin they’re used to from one other model than making an attempt one thing new and dangerous.

Giving somebody an upgraded model — an electrical model — of what they’re used to is a a lot simpler method to land a sale for a good portion of the inhabitants. It may possibly assist to ease their issues a few new powertrain, too. “Oh, it’s electrical now. Nevertheless it’s nonetheless a Polo, so I’m certain it’s tremendous.”

I think about this resolution took a little bit of handwringing and dialogue across the Volkswagen boardroom, however think about what number of occasions these executives have talked to individuals who purchased Golfs, Passats, Polos, Jettas, and different fashions for many years and raved to them about how a lot they liked these specific fashions. They certainly have market analysis information as nicely that exhibits a sure share of patrons simply need to purchase the identical mannequin once more.

With many years of selling round particular person market manufacturers, it simply is smart to not kill them off just because we’re transitioning to electrical powertrains and hold the cultural momentum going. As one other instance of that, Volkswagen simply launched a brand new press launch immediately titled “50 years of the Polo: Volkswagen celebrates anniversary with spectacular drift video.” The Polo lives on, even within the age of drifting and EVs. The brand new electrical Polo RX1e is considered one of three variations highlighted within the video and press launch. The “ID. 2all” wouldn’t have made the lower.