China’s biggest motor car company, SAIC,
which is wholly-owned by the Chinese government has announced it intends to
launch a revamped range of hatchback passenger cars wearing the famous MG
octagon badge.
Is it just me, or is this either amazing
corporate ineptitude; unbelievable naivety about how cars are sold in the real
world; how to manage and protect a brand; or are the bosses at SAIC, and Chinese government ministers just plain
stupid?
MG is an historic brand of British sports
cars, starting with the 1924 14/28, which was just a Morris Oxford, with a sports car body.
Despite such pedestrian beginnings, the letters PB, TC, TF, and of course A and
B became famous worldwide for capturing the image and the spirit of the
lightweight British sports car.
SAIC, which made and sold 5.9 million
vehicles in 2015, acquired the rights to the MG name and octagon badge in 2011. The company hired a number of designers to come up with a range of
passenger cars to carry the MG badge.
It even hired consumate British actor, Benedict Cumberbatch to front a TV campaign, hoping some 'Britishness' would rub off? Hmmm.
The cars were, in a word, dreadful.
Following their inauspicious market
debut, they bombed! Badly!
To make matters even worse, SAIC released a
sketch of its proposed MG sports car. Really!
Does SAIC have ANY idea how hard it will be
to convince buyers to accept these cars as MGs? Even if today millennials don’t
even know what MG represents, these ‘new’ MGs are basic and very ordinary,
and have nothing in their favour to compete against proven Japanese, Korean or
European small cars.
So, if they can’t be sold to anyone who
remembers MG; or any youngsters looking to buy a new car, then in desperation
SAIC will have to offer the cars at bargain basement prices, which will only
serve to degrade the name MG, and any residual value that the badge retains.
Believe me, this is a disaster of global
proportions about to occur. That is, unless the Chinese company and its Chinese
government masters actually ask someone from the car industry exactly how to
generate any value at all, from ownership of such a revered brand.
BTW, SAIC didn’t get the Rover name.
It is owned
by Jaguar Land Rover, so SAIC has designed a new badge for its ‘Rover’ cars –
now named ‘Roewe’.
SAIC proposes a new sedan and an SUV, which, like the MGs are
very uninspiring designs. And, by the way, what will their USP be?
I can’t even give SAIC a pat on the back for
having a go! So, in the end, I’ve decided they are just really stupid!
On Parramatta Rd near Chippendale (in an ex-Rick Damelian lot) there have been twenty or thirty of these "new" MG cars sitting idle for at least five years. It amazes me to see them every time I drive past. I can only guess that they do not have approval for sale in Australia?
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