High-performance vehicles are always widely discussed and debated by fans and journalists. When a model undergoes a generation change, the new high-performance model is always premiered later, leaving people anticipating and guessing. Automakers invest a lot in developing trendy visual designs and rocketing engine power. Hence, the price tags of these models are often significantly higher than normal ones. To further differentiate the performance models from others, automakers are marketing them as sub-brands e.g. Mercedes-AMG, BMW M, Audi Sport.
If we look carefully into the sales figures, we can notice that these models are relatively rare in terms of units sold. Then why do brands like BMW spare no effort in rolling out new M models? The answer is rather counter-intuitive: these models bring about revenue other than themselves.
Take BMW for example (as I am a BMW fan). As a brand featuring athleticism, BMW has kept “///M” as the top image for decades, which offers customer choices that combine practicality and speed. One does not need to drive a hard, bumpy Porsche 911 to reach 250km/h anymore. Now, customers have choices other than pure M models as BMW is expanding its strategy. Under that are cheaper M-Performance models and M Sport packages. An M340i would be close enough to an M3, and a 318i M Sport would also be possible. Those who only like the look of the M3 may find a 1.5-liter 318i enough for daily driving. Obviously, both M-Performance vehicles and M-Packages cost more.
Do you think the badge “M3” is the range-topping model of the 3-Series? Not anymore! In the past, BMW added some special M3 models in each generation, and the most notable one should be the E46 M3 CSL. Still, those were only considered special editions. Now, BMW is selling M-Competition models as the highest regular models, and we will probably see M3/M3 Competition coming together in the near future. This is the same story for Mercedes-AMG 63/63s. Actually, AMG is the one starting the trend of the twin strategy within the performance lineup. The 63 models are well enough, but customers are likely to spend more money, not for additional speed, but for the feel of owning the top one.
The top-down strategy is the most common one for high-performance branding, but some manufacturers are expanding upward. That is, besides putting strong engines into traditional family cars, manufacturers not known for pure super sports cars are producing track-oriented vehicles as regular models. In the past, we did see cars like BMW Z8, Mercedes-Benz SLR McLaren, but they were just one-off limited works. Nowadays, Audi R8 and Mercedes-AMG GT are sold regularly, competing with traditional sports brands like Ferrari and Porsche. These entry-level hypercars benefit from the growing needs in developing countries and help raise the awareness of the brand itself.
Seeing the success of German luxury brands, more brands have tried out the performance brand trick, and some do succeed. Cadillac introduced V models nearly two decades ago and is now offering ATS-V and CTS-V that rival BMW M3 and M5. CTS-V even gets the 6.2 supercharged engine from Corvette Z06 directly. However, with the demand for sedans shrinking, Cadillac is adjusting its product line, and the V models might become history.
Toyota is now launching its own sub-brand Gazoo Racing (GR) with the return of Supra. Though not yet a hyper-performance car, Toyota places GR Supra at the top of the GR hierarchy. Under that are GRMN, GR Sport, and GR Parts, and some models with GR elements have already hit the market. Could Toyota make a redemption for the failure of the LEXUS F family?
As for budget FF cars, VW is an early mover of the hot-hatch with the renowned Golf GTI and is now expanding the R family. Others like Ford (ST/RS), HONDA (TYPE-R), Opel (OPC), Peugeot (GTi), and Subaru (STi) are constantly offering high-performance models although their offerings are not as vivid as those big brands. Hyundai joined the battle recently with the N family.
If all these efforts in making street-legal cars are not enough, what else can carmakers do? The answer is: go beyond the street and race in the track. Actually, some sub-brands originated from motorsport divisions. BMW M actually means “motorsport” at first, but the abbreviation form is now more acknowledged. The BMW Motorsport GmbH was even renamed BMW M GmbH, and BMW Motorsport is now a department specifically for race activities.
The core technology of Audi Sport — quattro — was first applied in the rally race, and the S/RS family has been expanding from that. Later in the early 2000s, Audi built R8 with the technologies from 24H Le Mans. Nowadays, both BMW and Audi are still engaged in DTM (M4 DTM, RS5 DTM) and GT racing (M6 GT3, R8 LMS).
The story of Mercedes-AMG and motorsport is in the opposite sequence. Mercedes-Benz quit the F1 in the 50s and only returned in 2010. During this time-lapse, Mercedes-Benz still took part in DTM and FIA GT Championship, and AMG was also engaged in race car development. 190E 2.3–16 and 2.5–16 were developed for the DTM, and CLK GTR was built to the standard of the GT1 group. In 2010, Mercedes-Benz purchased the Brawn GP and renamed it Mercedes GP Petronas. Since 2012, the team has been named Mercedes AMG Petronas, and the brand “/////AMG” finally made its way into the F1.
Similarly, Toyota currently races in WEC and WRC under the name “Toyota Gazoo Racing”. The term “Gazoo” was added in 2016, probably with an eye on promoting the GR brand. Right now, Toyota uses Yaris as the base of the WRC race car, and the race car for 24H Le Mans is a purely track-oriented vehicle TS050 Hybrid.
Of course, the performance models have to reach certain sales figures to justify themselves, and this is why some brands have quit doing so. The saddest example must be the Mitsubishi Evolution. Once a dominant player in WRC and the icon of 4WD turbo cars, the Lancer Evolution (and the whole Lancer lineup) was aborted due to the change in market taste. Mitsubishi decided to invest more in SUVs and electric cars rather than a stupidly fuel-consuming turbo sedan.
Other notable discontinued brands include Jaguar R, MAZDASPEED, and Volvo R. Interestingly, though, Jaguar and Volvo are offering R Sport and R-design packages for regular models without any pure R models on top. Volvo does try to revive its high-performance lineup in a different way — the electric sports brand Polestar. So Polestar has rolled out 1 and 2, and we will see how far it can go.
Watching manufacturers battling in the performance car market could be more than power figures and track records. Those expensive cars are meant to impress customers but not necessarily to drag money out of their pockets. Once people are well impressed with the term “AMG”, “M” or “GTI”, that is the moment when marketing tricks kick in. Anything related to those concepts would satisfy potential customers out of nowhere and generate revenues.
I have to admit that I fall into the trick of just one letter: M.
