|
It all depends on how the badge engineering is executed. The early Camaros and Firebirds had different engine and suspension setups along with different interior and exterior styling. In that case, the overlapping models could be justified to an extent. On the other hand, when you get to the later models that were differentiated by only interior and exterior styling, it really became harder to justify having both.
In the case of the Silverado/Sierra and F150/Mark, it really is a case of different trim levels. Clearly the Lincoln is more upscale than the Ford. And increasingly you'll see that GMC is positioned to be more upmarket than Chevy. So as long as GMC models are clearly pricier, more upscale versions of their Chevy counterparts, their existence is justified.
In the case of Saturn, the products aren't differentiated so much as the dealer network. Saturns may be pretty much identical to their Chevy, GMC, Pontiac, or Buick counterparts, but Saturn buyers will buy them because Saturn dealers and the Saturn buying experience are clearly unique.
Still, even if overlapping models can be justified, in times of shrinking market share or even an overall shrinking market it can be a smart move to cut one of those models to save on marketing costs, improve on economies of scale, and consolidate sales numbers. There are also costs associated with fuel mileage and safety testing, so you can see the costs of overlapping models can easily outweigh the benefits of more precisely catering to specific tastes.
|