Beginning in the 1990s, the “branding experts” in the automobile industry set out on a path to eliminate names for many models, particularly luxury cars, and replace most of the names with three-letter designations. While it is difficult to pinpoint the exact reason behind this branding strategy, the main catapult seems to be that Mercedes-Benz and BMW did not have names for their models, but letters or number, respectively.

In view of the sales success of these luxury car makers, their competitors in the automobile industry set out to emulate the leaders’ branding strategy. However, in pursuing a branding strategy similar to that of Mercedes-Benz and BMW, the automobile industry destroyed iconic brand names, and created confusion among consumers by choosing in many cases three letter model names that no consumer can remember.

To review the complete report, authored by  Keleti+Moradian LLP partner Payam Moradian, download the PDF here.