BMW is the Most Valuable Global Automotive Brand, According to Millward Brown's 2012 BrandZ Study

MILLWARD BROWN'S BRAND-Z REPORT NAMES BMW THE WORLD'S MOST VALUABLE AUTOMOTIVE BRAND

NEW YORK-- May 22, 2012: Rising sales around the world helped BMW to take pole position in the seventh annual Millward Brown Optimor BrandZ Top 100 Most Valuable Global Brands study.

The Munich-based car brand accelerated its brand value by 10% in a declining sector to retake the No 1 spot after being temporarily displaced by Toyota in 2011. The research shows that BMW now has a brand value of £24.6bn significantly ahead of Toyota, which suffered a decline of 10%.

BMW has benefited from record revenues following the introduction of new models, selling 1.4 million vehicles - an increase of 12%. Toyota - like many Japanese companies had to deal with supply chain issues in the aftermath of the earthquake, Tsunami and nuclear disaster.

Overall the automotive sector struggled in the BrandZ 2012 listing with total category value down 7%, sales in Europe were particularly poor. There was better news from the US however where consumer demand was at its highest since 2006. As the US economy recovered, carmakers marketed fuel-efficient family sedans rather than SUVs built on truck frames. To drive sales and profit, carmakers reduced costs and built products with improved style, technology and driving experience.

Millward Brown's Global BrandZ Director, Peter Walshe says, "The continuing decline in total brand value indicates that the recovery of the automotive sector is still not complete, even if financial numbers from the US do seem to indicate an improvement in performance.

"The car industry also faces future demographic challenges. Increased urbanization may reduce dependence on cars as people turn to public transportation or car sharing arrangements to reduce traffic and pollution. Also, among the socially networked youth, cars become less necessary for staying in touch with friends. For them, cars do not define personal status in the same way they did for their parents. And a computer or mobile device is much more affordable."

Other key highlights from the automotive ranking include:

* Korean sunrise - Hyundai is the first Korean car brand to enter the automotive top 10. Valued at $3.6 billion, the company has benefited from demand from discerning customers who, faced with a major purchase during difficult financial times, look for quality and style while avoiding the hefty price tag usually associated with more prestige models.

* Technology went mainstream - Luxury cars may have experienced a negative impact from the rise in overall car quality. Faced with generally improved performance, attention to design and the availability of sophisticated technology across the category, luxury brands found it harder to differentiate themselves.

With many brands now loading cars with sophisticated technology, including voice-activated communication and entertainment, the luxury sector brands have turned to innovations in collision-avoidance technology to differentiate themselves.

* China remains key - Although auto sales in China slowed, the country remained the world's largest auto market and a critical volume-driver for several Western brands, including Audi, VW, Mercedes and GM, which positions itself in China with a good, better, best range of Chevy, Buick and Cadillac. A Chinese government plan to exclude import brands from the list of vehicles approved for official use could potentially impact the international players.

The Most Valuable Car Brands 2012

Category Rank

Top 100 Rank

Brand

Value in $ million

Brand Value change from 2011

1 23 BMW 24,623 +10%

2 28 Toyota 21,779 -10%

3 46 Mercedes-Benz 16,111 +5%

4 65 Honda 12,647 -11%

5 81 Nissan 9,853 -2%

6 96 Volkswagen 8,519 +15%

7 - Ford 7,025 -5%

8 - Audi 4,703 +23%

9 - Hyundai 3,598 n/a

10 - Lexus 3,392 -7%

The BrandZ Top 100 Most Valuable Global Brands study is the only valuation in the world that takes into account what people think about the brands they buy alongside rigorous analysis of financial data, market valuations, analyst reports and risk profiles. The research report, which is available online, includes a ranking and analysis of the most valuable brands for key regions of the world and 13 market sectors including automotive. Download the complete BrandZ ranking, including regional and category breakdowns. The rankings and a great deal more are also available as a free application for the iPhone, iPad, Nokia, BlackBerry and Android from Brandz Mobile.