LOL-Essay 002: June, 22nd 2024
 
Capitalizing on the Greenlash – Part 2: Porsche launching the 911 T-Hybrid (992.2) and the question whether technology is neutral 
By Peter Seele
 
Keywords: faster fast, Kitification of the 911, 2nd order greenlash, Bugatti Tourbillion
 
The neutrality of technology?!
Technology is neutral. It is never technology’s fault. It is users giving technology meaning, purpose and direction. No knife has ever killed anyone. However, just like money, being an “absolute medium” following the landmark book of Georg Simmel on the “Philosophy of Money” from 1900, we tend to associate qualities with concepts, though technically and logically the concept is neutral. Green tech, clean tec, smart tec, etc. Like blood money or black money. Tec is Tec. Money is Money. But is that all that drives human perception and consumer’s desires?
The marketing of technologies often is not only about social purpose and philosophical meaning, but strategic communication along the lines of trends and developments serving both commercial and political markets. Sustainable development is such a catchphrase, institutionalized by the 17 Sustainable Development Goals (SDGs) of the United Nations. Before anyone misunderstands my words on neutrality: The concept of sustainability is derived by a myriad of scientific evidence, showcasing that human activity in the last decades or even centuries have led to overconsumption of resources and setting free emissions that massively disturb the planetary equilibrium, which took some four billion years to evolve and create life full of biodiversity on the planet’s surface. Beautiful as it is.
Technologies now may be used for all sort of purposes. Many good ones. Medical technology saving life and curing diseases. Assembly lines making production more efficient. Artificial Intelligence helping humans to evolve into a new age. Weapons helping to secure freedom and security… Well. I think you get the point of the impossibility of (absolute) neutrality. Every technology and every meaning we associate to it may turn into positive aspects. And every positive aspect may be framed to turn into a negative aspect as well. So what’s the link to the new Porsche 911?
The recently launched new 911 (992.2) is the first 911 coming not only with the famous six cylinder engine in the back, but infused with e-technology. The new 911 (currently only the GTS) makes use of hybrid technology, combining the six cylinder combustion engine with e-drive and a battery. This is not the place to discuss the features and performance data, but to think about the meaning of electrifying the 911, an icon from the oil-age, created as a sports car. The utility of the 911 is fun, performance and status. Just the right thing to discuss after the last essay on Ferrari’s new twelve cylinder with a full commitment to the combustion engine.
Now here is the point. Electric vehicles and hybrid cars in most cars are created to reduce emissions. That is why many governments reduce(d) taxes for e-vehicles and increased taxes for cars with high performance data. Here in Lugano for example the tax for the car is based on the cubic capacity as a proxy for emissions. The larger the engine, the more emissions. Hybrid cars therefor in many cases contribute to an environmental agenda. Some cities allow only emission-free cars. Some only cars qualifying for certain emission standards. Also having a battery on board helps saving energy through recuperation. That is when using the break, the energy is saved into the battery and not lost to friction and temperature. This is what the new 911 also does to a certain extent, but here is the difference. The hybrid technology in the 911 is meant to accelerate. A boost, like elder generations may remember from the TV-series “Knight Rider”, where the car – named Kit – makes use of the “Turbo Boost”, some kind of energy boost that makes Kit fly, move objects or just look cool because of the boosted acceleration.
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Kitification of the 911 (Knight Rider)
Let’s call it the “Kitification of the 911”. You may not talk to it like David Hasselhoff to Kit, but we are getting there, as also the 911 is getting smarter and smarter (that is making use of algorithms and artificial intelligence). Porsche calls this the “T-Hybrid” and is very clear about the purpose of the hybrid drive: “New Porsche 911: T-Hybrid for significantly enhanced performance”. The additional energy is used to get a speed boost. But it does not stop there. The all-new Bugatti Tourbillion from one month later, that is June 2024 also combines combustion engine (16 cylinders, takt that Ferrari Dodici Cilindri) with three electric engines – also used only for performance (beyond the 1000 horsepower threshold, 1775 to be precise). And on top – poor Porsche marketing guys – the Bugatti does not have a Turbo in the combustion engine, but the traditional “naturally aspirated engine”, also part of the traditional DNA of the 911. And Bugatti explains it not via performance, but sound and volume. Ergo volume of sound.
 
As anyone knows who drives cars for more than two years, the famous proverb has some merit: Every additional part of a car is one more part that may break and needs replacement. And as sustainability researchers know: Producing additional parts means more emissions when producing them, and secondly the question of disposal. Plus, number 3: every additional part adds weight, which requires energy to be moved and more energy to be accelerated. So, using a technology like hybrid that has its prevalent use-case in reducing unsustainability, the new 911 T-Hybrid uses the same technology to be – faster fast. Hey 911, one talks to the wrist-watch: Turbo Boost. That is certainly a match with the symbolic DNA of the 911 performance feature.
But from the perspective of the greenlash discussed in the last LOL-Essay, the T-Hybrid 911 is also capitalizing on the greenlash, but unlike the Ferrari Dodici Cilindri, it is capitalizing on the greenlash on the next level. It is not a step back like the twelve cylinder pure emission driven engine, but using electic technology not to go ahead (understood here of reducing unsustainability), but to be faster fast. And the new 911 is (again) the fastest 911 ever as it combines T-Hybrid plus Turbo (see the very entertaining Topgear review).
When engineering meets creative accounting
To increase performance, the weight had to be reduced. Particularly given that a new battery plus the T-Hybrid module had to be integrated. So how to reduce weight? Expensive carbon? Textile door grips like in the GT3 or Carrera T? No, for the ‘basic’ model (understood here as no GT3, GT2 or Turbo or any other limited edition special edition) the new default for ordering the 911 is without backbench. What a sacrilege!!! The 911 is an icon also because it is a 2+2. That is the two seats in the rear that hardly qualify as seats, but that nevertheless make Swabian eyes shine (the author has a mother from Stuttgart), when you need to give a lift all of a sudden. The GT3 without 2+2 is understandable, not only for the 10 kh. But the ’basic’ model? That is close to blasphemy in my humble opinion. But the reality is slightly different. When ordering the +2 is not included, but for no money on top you may order the +2 seats and have a real 2+2 911. So what is this about? When engineering meets creative accounting. Making the default 10 kg lighter, the performance-data is better. Not only for the car, but also for the engineers, who added a battery and hybrid, but only added 50 kg to the 992.1.
Yes, who cares? I get the 911 2+2 for the same price. I think in the luxury segment even the most insignificant differences may turn significant. As the words suggests. As a sign, as a symbol. Here two interpretations:

1. It is a cheap trick. Reducing weight by cutting out a 911-top-identiy-feature like the +2 seats and then allowing them to be reintroduced for free (plus the weight, but that does not affect the default values – and physics of performance).
2. We may also admire the company for their smartness combining performance engineering with creative accounting? Isn’t creative accounting in our finance driven world one of the major drivers for profit?

In any case. The new 911 GTS with T-Hybrid capitalizes on the greenlash, as it instrumentalizes a green technology for mere performance boost. No technology is neutral, when humans use it. And technology without humans does not exist (at the moment). Other than the Ferrari Dodici Cilindri, this capitalizing on the greenlash happens on a more sublime level; call it 2nd order capitalizing on the greenlash.
 

Peter Seele
LOL – Luxury Observatory Lugano
May, 26th 2024
 
Capitalizing on the Greenlash? On the (re-)launch of 12-cylinders luxury cars (here Ferrari’s Dodici Cilindri) 
Greenlash: the latest trend in sustainability
It is complicated: studies are still not clear if and from what milage onwards electric vehicles are more environmentally friendly than cars with combustion engines. What about the rare materials to produce batteries? What about their disposal? The early days of the green economy and sustainable development are over. The peak of going green was reached when becoming (political) mainstream. As a consequence, corporations are not the only greenwashers anymore. Also, politicians have discovered the temptation of framing green messages to attract votes and thus have become greenwashers. Just think of the EU taxonomy labeling gas, a fossil fuel and nuclear, producing waste for millennia, officially as green. The Guardian calls this the “biggest greenwashing ever”. Or just think of the COP conference  2024 hosted by the monarch of an oil state and CEO of an oil company. Greta, the former teenage activist is not credible as moral authority anymore. Her most important and relevant claim “follow the science” has lost much of its impact, though the scientific evidence pro sustainability is – unfortunately – still overwhelming. In today’s hyper-polarized times the sentence “follow the science” sounds like a long gone echo. Now what is the green state-of-the-art. What is the Zeitgeist’ response to the crisis of sustainable development?
All this complicated green mess is summarized in the latest trend in the green universe: The “Greenlash”, a grammatical composite of “green” and “backlash”. Greenlash. 
 
Ferrari as trendsetter for capitalizing the greenlash?
Now how does the greenlash impact on luxury goods? As sustainable luxury, positive luxury and ethical luxury have been top-selling concepts for the last years – and still are – what does the Greenlash do to the luxury industry? I argue, infused with a dash of cynicism, that it creates an attractive business opportunity for the luxury industry. Among the many examples possible (like private jets, superyachts, architecture, etc.) I focus on luxury cars, more specifically the recent launch of the new Ferrari “dodici cilindri” (Italian for 12 cylinders). The model’s name tells everyone right in the face (and I shall assume that you can also hear a heroic sound of majesty right in your ears), that it represents three regular 4 cylinder cars in one chassis. Ok, it also tells us, that Ferrari is still modest as it does not represent four regular 4 cylinder cars like the 16 cylinder Bugatti, build by Volkswagen. But it is also two six cylinder Porsche 911, which grosso modo also represents the price tag of the new Ferrari with a proposed starting price of 395 000 Euros (another text on the tragedy of the 911 as victim of its own success is coming soon, but seriously, we do not have to feel sorry for Porsche). The Dodici Cilindri also works with the non-charged “naturally aspirated engine” like the 911 - did in the past (if I may:“naturally” is an absurd word for a machine).
Now: why is the launch of a new 12-cylinder car – by the name “12 cylinder” – such an issue seen through the greenlash perspective? For three reasons:

1. Downsizing: The general trend of downsizing cars for the last years due to the commitment to reduce emissions and stop, ahhh, sorry, mitigate climate change.
2. International regulation: Changing from fossil fueled to electronic vehicles from around 2035 onwards.
3. Lobbying: Fleet emission regulation and – pars pro toto –  Ferrari as smartest luxury brand in the room (quote LoL).

 
Ad 1: Downsizing: The general trend of downsizing cars gained momentum during the last years due to the commitment to reduce emissions and stop climate change. Mercedes for examples banned all 8 cylinders from the main brand, that is Mercedes-Benz. So, the famous S-Class 500, an institution for decades with 8 cylinders and 5000 ccm has been abandoned from the Mercedes-Benz brand universe. It has however to be said, that the 8 cylinder is still available as supercharged version in the inhouse-tuning brand AMG, a legally separate Mercedes company. But even on the AMG level, the 12 cylinder has been banned, and only supercharged 8 cylinders will be available. The AMG S class with 12 cylinders is not produced anymore. The Mercedes-AMG S 65 Final Edition from 2019 was the last model. But sorry, Mercedes. We got your holistic thinking. Mercedes-Maybach, a third independent company belonging to Mercedes still has the 12 cylinders. So good news for the environmentally friendly middle class Mercedes drivers. Their brand cares about downsizing. Needless to say, that the same is true for Stellantis, to which Fiat belongs, to which Ferrari used to belong. Still fan of upsizing? Currently the following brands feature 12 cylinders: Ferrari, Rolls Royce, Maybach, Aston Martin, Lamborghini and the Bugatti 16 cylinders from VW, whereas Bentley (also VW) stopped in April 2024, shortly before the Ferrari Dodici  cilindri launch.
 
Ad 2: International regulation. Several jurisdictions have issued plans to ban all fossil fueled combustion engines from around 2030 or 2035 onwards. The EU commission declared that the “Fit for 55” deal will end the sale of new CO2 emitting cars in Europe by 2035. Several US states as well. The UK from 2040 onwards. China plans 50 % elective vehicles by 2035 and Norway bans new combustin enginge cars from as early as 2025. So all in all, plenty of time so sell the 12 cilindri in the next 11 years. Only in Norway this will get difficult, but as one can read these days many Norwegian billionaires left Norway and are now living in sunny Lugano. As of now Switzerland is still thinking about adopting the EU regulations of going emission-free in 2035. Maybe, maybe not. Good for Ferrari! That means a life cycle of at least 10 years. And Germany’s strongest political party (CDU/CSU) just now in May 2024 argues for abandoning the ban of combustion engines - and I have not yet mentioned the oil-states in the deserts, who are not so much known for downsizing anything.
 
 
 
 
Ad 3: Lobbying: Ferrari’s strategy to launch and thus to celebrate the 12 cilindri in 2024 is therefore an extremely smart move. Bold, but smart. A slap in the face of the non-Ferrari drivers, but isn’t that what 12 cylinders is all about in the first place. Conspicuous consumption as Thorstein Veblen has described it more than a hundred years ago? But “Ferrari as the smartest luxury brand in the room” (did you realize the play of word borrowing from Enron?) does not stop with intelligent timing of channel-specific product development. The EU allowed for an exception of the upcoming emission regulation for Ferrari (and some other car makers selling small numbers of units – sorry Porsche, no sorry, you just sell too much). Selling less than 1000 units per annum in Europe means that no restrictions of emissions whatsoever will apply. As “auto-motor-sport” one of Germany’s most relevant car magazines explains, this exception is a concession for Italy, as the Italian minister for environmental affairs Roberto Congolani (who by chance happens to have worked before with Ferrari,) argued, that “European Small Volume Car Manufacturers” (ESCA) produce luxury goods with a longer lifespan. Did they use the word sustainable? Well, I do not know, but given the almost Babylonian confusion of language when it comes to the term sustainability, I would not even be surprised.
So, all in all an extremely smart move from Ferrari not only getting an exception from the legislation for the other car makers, but taking a restriction and turning it into a business opportunity. Creating a new 12 cylinder and play the marketing concept in a blunt way upfront calling the product a 12 cylinder. This goes much further than Maserati calling its rare four-door-car a Quattroporte (Italian for four doors). That was elegant, also because of the elegance of the Italian language for non-italophone-ears. Ferrari goes all-in symbolically saying: “This is Ferrari”. A bit like “This is Sparta” like in the Jack Znyder film “300”. “This is Ferrary. This is the Dodici Cilindri.” It is a bold message of a bold identity.
Learnings
So, what may we learn from this little LoL-reflection?

1. Downsizing is for the luxury middleclass. The top segment still has a fantastic variety of 12-cylinder models, and the Ferrari 12-cylinder opens the new chapter of being clear about it: Maybach, Ferrari, Bugatti. The top level segment does not downsize. The middle-top level luxury segment has to find itself in the political mainstream of regulation. Just think of the S-class 500. Once the highest standard, now the top end of the lowest brand range (under AMG, under Maybach) of cars with the star from Mercedes. Louis Vuitton is for ordinary people watching the Olympics (maybe an essay on LV as Olympic sponsor when the games start in Paris later this year).
2. Why follow the money is more powerful than follow the science: Coming back to the greenlash. The success of the Dodici Cilindri from Ferrari, which, although not yet launched, is highly probable, confirms the greenlash – embodied in the chassis of a luxury grand tourer sports car. As the luxury segment often works as anticipating trends that later enter mainstream, I would expect that the greenlash is just getting started. Sad but true, seen from a scientific point of view. Just think of the decline of biodiversity. But business follows the money, not the sciences. And the sciences look into details. Business however says: Don’t look up. (Lol).
3. Hey Porsche. Sure, the 911 is an icon with 6 cylinders we all love and here in Lugano you can see the 911 marking its territory all over the place. But how will you explain to your shareholders n o t to capitalize on the top luxury segment with a real top-end luxury car with an insane big engine like the Ferrari dodici cilindri? And didn’t Ferrari – ähhh – borrow the black stallion in the logo from Porsche in the first place? But Ferrari somehow gets away with it. Always. Turbo Furbo.

 
 
Cite as:
Seele, P. (2024). Capitalizing on the Greenlash? On the (re-)launch of 12 cylinder luxury cars (here Ferrari’s Dodici Cilindri). LOL-Essay 001. Luxury Observatory Lugano. http://lolugano.ch/blog-home/capitalizing-on-the-greenlash-on-the-re-launch-of-12-cylinders-luxury-cars-here-ferraris-dodici-cilindri
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