Ferrari is the world’s most powerful car brand while Toyota is at the top in brand value, according to UK-based valuation and strategy consultancy Brand Finance.
The consultancy values the brands of thousands of the world’s biggest companies annually.
Brands are first evaluated to determine their power and strength (based on factors such as marketing investment, familiarity, loyalty, staff satisfaction and corporate reputation) and given a corresponding letter grade up to AAA+.
Brand strength is used to determine what proportion of a business’s revenue is contributed by the brand, which is projected into perpetuity to determine the brand’s value.
The world’s 100 most valuable car brands are then ranked and included in the Brand Finance Auto 100.
Ferrari is among the top 10 strongest brands from any industry. Its brand strength has improved by three points in 2017 to 92, leading to an upgrading of its brand rating to the maximum AAA+.
Porsche is the second most powerful car brand with 86.
The company says the strength of Ferrari’s brand is all the more remarkable given its increasingly commercial approach and improving revenues. Former chairman Luca di Montezemolo enforced a production cap of 7,000 vehicles to maintain perceived exclusivity and brand strength. However, since Sergio Marchionne took command, and particularly since Ferrari’s initial public offering, the annual production cap has been raised to 9,000. With the company’s other continued commercial exploitation of the brand, it has seen its brand value surge 40% to $6.15bn in 2017.
Brand Finance CEO David Haigh says: “The fact Ferrari has boosted revenues without compromising brand strength suggests it has found the perfect formula to sustainably exploit brand equity to maximise shareholder value.”
Overall, the most valuable car brand is Toyota. Its brand value has increased by 7% to $46.3bn and its profitability remains strong.
Volkswagen’s flagship VW brand is growing strongly, up 32% to $25bn. VW is rebounding rapidly from damage caused by the 2015 emissions scandal. This reputational recovery is clear from a six-point improvement in brand strength, making VW the world’s third-strongest car brand. – Mark Smyth