The automotive industry is seeing a resurgence of “badge engineering”—a practice where nearly identical vehicles are sold under different brand names. While not new, the trend is becoming more prominent, raising questions about brand identity and consumer choice. Historically, badge engineering was blatant, with models like the Chevrolet Trailblazer, Buick Rainier, and GMC Envoy sharing almost everything but the exterior styling. Today, it’s more subtle but still widespread, driven by cost-cutting, platform sharing, and strategic partnerships.
The Toyota-Subaru Example: A Modern Case Study
The most visible modern example is the collaboration between Toyota and Subaru. The Scion FR-S (now Toyota GR86) and Subaru BRZ were essentially twins, a fact that carried over into the second generation. More recently, this partnership yielded the bZ4X (Toyota) and Solterra (Subaru), followed by even closer rebadges: the Toyota C-HR and bZ Woodland versus the Subaru Uncharted and Trailseeker. Despite minor cosmetic differences, these cars feel like afterthoughts, diluting brand distinction for the sake of shared development costs.
This isn’t a niche issue. Toyota and Subaru are just the most transparent example. The larger problem is how automakers are increasingly reliant on partnerships to survive.
Ford’s European Gamble: A Cautionary Tale
Ford’s strategy in Europe illustrates the risks. Partnering with Volkswagen to produce Ford-branded versions of the ID.4 and ID.5 (resulting in the Explorer EV) proved disastrous. The Explorer EV was a commercial flop, forcing production cuts at Ford’s Cologne EV plant. Undeterred, Ford is now doubling down with a Renault tie-up, promising two new EVs built on French platforms. History suggests these vehicles will struggle to differentiate themselves in a crowded market.
This reliance on partnerships isn’t limited to Europe. Nissan recently launched the 2026 Rogue Plug-in Hybrid, which is, in essence, a rebadged Mitsubishi Outlander PHEV. Nissan’s advantage lies in its larger dealer network, potentially offsetting the lack of originality. The Rogue PHEV offers 38 miles of electric range and seven seats—functional features, but not exactly innovative.
Why This Matters: The Erosion of Brand Identity
The growing prevalence of badge engineering isn’t just a matter of aesthetics; it’s about the core value proposition of automotive brands. Consumers choose brands for their heritage, design language, and perceived quality. When vehicles become indistinguishable beyond the badge, this value erodes.
Automakers are prioritizing efficiency over identity, betting that consumers will settle for cheaper, faster-to-market solutions. This approach may succeed in the short term, but it risks long-term brand damage. Consumers may begin to view certain brands as mere shells, lacking the substance that once defined them.
The current trend suggests automakers are willing to sacrifice brand identity for cost savings. Whether consumers will accept this trade-off remains to be seen.
The future of automotive branding may hinge on whether automakers can rediscover a balance between efficiency and individuality. For now, badge engineering is here to stay, and the lines between brands are becoming increasingly blurred.
