BRAND EQUITY
VW’s value vaults despite exhaust scam
After it was caught cheating on exhaust-emissions specifications, the German vehicle manufacturer actually thrived, writes David Furlonger
So much for the experts. In a year when the prophets of doom were forecasting doom for profits at Volkswagen (VW) after it was caught cheating on exhaust-emissions specifications, the German vehicle manufacturer actually thrived. As reported recently, the VW group, whose brands include Audi, Seat, Porsche, Bentley, Lamborghini and Skoda, overtook Toyota in 2016 to become the world’s biggest-selling motor company. Now, a global study of brand values has found the core VW passenger-vehicle brand grew its worth 32% in 2016. The study, by UK-based valuation consultancy Brand Finance, shows VW’s brand value improved from $18.9bn to $25bn. That was still well short of overall automotive leader Toyota, on $46.3bn, followed by BMW on $37.1bn and Mercedes-Benz, valued at $35.5bn. Values are based on predicted future sales directly attributable to the brand, and a "royalty rate" — what someone would have to pay for use of the brand if it were not already owned. Among the factors that contribu...
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