As automakers transition to EVs, can old brands learn new tricks?

Youth breeds opportunity

Younger buyers may not see their parents’ favorite auto brands the same. Crossovers rule over sports cars and electric charging stations will eventually replace gasoline pumps. Bold moves are required to stay relevant.

“Mach-E is reinventing Mustang as an electric,” Ries said. “But younger drivers want a new brand. You can take a brand that’s out of sight, out of mind, as electric only, but if you’re going to do it, you have to stop making gas versions. It does spell opportunity for those like Rivian. It’s not easy, a complicated business, which is why traditional car companies think they have the edge. They don’t if they don’t manage their brands correctly.”

GM once took the bold step of launching a new brand to attract a new generation. Ironically, it also leased the first modern electric car, the EV1. That brand was Saturn, which had its own cars, assembly plant and retailers who practiced “no haggle, no hassle” pricing. It was a raging success until vehicles became less unique as the mother ship sucked it in.

Saturn died in 2009, but what will be the fate of today’s EV producers? Some are doing it better than others.

It was Tesla, Ries said, that did everything right. It created a new brand, the first that comes to mind when most people think of electric vehicles. "They launched one model at a time, not 10," Ries said. "(A) new brand for a new category, then driving PR, making it look different, too.”

So, which brands are not doing it so well?

“Take your pick,” Ries said. “All traditional automakers are doing the opposite, line extending their gas brands into EVs. They have tremendous opportunity and resources, but are not taking time to build the brand. You should make the most of gas brands as long as you can, but also need a second brand to prepare for the future.”