Can A Brand Be Stretched Too Far?

image: BMWBlog

A recent Gauge Index survey from Hankook Tire indicated 64% of Americans are interested in an offroad adventure, versus only 30% last year. And with strong Wrangler and Bronco sales and the imminent arrival of a new Xterra, two new Scouts, and a potential US-focused Defender model, it shouldn't be surprising that other automakers are looking for a piece of the action.

Reports surfaced a few months ago of a new US-built large BMW SUV, codenamed G74, that would have hit the market in about three years to take on the Land Rover Defender and Mercedes G-Class. But market conditions have forced BMW to re-evaluate their future plans. In reviewing the company's Q2 business results, new CEO Milan Nedeljković said "In all these areas, we are taking significant steps and increasing the pace. For example, we are once again reviewing which technologies, model variants and drivetrains we will need in the future. In addition, we are looking at where new partnerships could make economic and technological sense."

This sounds like a wise move, strategically. Xterra and Scout are returning to the market as established nameplates with offroad credibility. BMW, as the 'ultimate driving machine' with an impressive track-focused history, might face a challenge convincing buyers to abandon their Land Rovers and Gelandewagens for a brand with almost no offroad credibility. Ironically, though, BMW cites a slowdown in China as a key challenge--but that's a market currently being flooded by new brands building some very impressive offroad-capable machinery with zero offroad heritage to build upon. That's perhaps the one market where G74 might have made an impact.

We do know Audi is investigating this space--but has the potential to leverage their rallying heritage and Quattro history to convince buyers they can build a go-anywhere luxury SUV. Lincoln is rumored to be looking at a Bronco derivative as well--which would certainly be go-anywhere-capable--but I'm less convinced they can execute something that is Lincoln-appropriate in terms of refinement.

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