Jaguar's ambitious turnaround plan will put a big focus on the American market
Land Rover is on a roll, but it’s been awhile since we’ve heard from sister company Jaguar. The company is concocting yet another turn-around plan, and recently-appointed CEO Adrian Mardell provided several details about what’s in it and it means for the American market.
Speaking to industry trade journal Automotive News Europe, the chief executive conceded that mistakes have been made. “[Jaguar] was incredibly successful in North America 25 years ago, before we took the compromises and the decisions we made,” he explained. He stopped short of providing specific details but pointed out that Jaguar’s best days have been “lost within Ford Motor Company data.”
If you need a crash course in Jaguar history, Ford bought the brand from British-Leyland in 1990 and sold it to India-based Tata in 2008.
Mardell, who joined Jaguar Land Rover in 1990 and watched the group embark on a roller-coaster ride, sees big potential for growth on Ford’s home turf. “There are 20 million millionaires in the United States alone. So, a lower volume [and a] higher price positioning is absolutely the right position for Jaguar today,” he opined. In contrast, Jaguar has largely aimed for mainstream segments in recent years.
The publication added that Jaguar’s master plan calls for moving upmarket to fight in the same arena as Bentley and Porsche. As of writing, most buyers and journalists consider Jaguar an alternative to brands like Audi, BMW, and Mercedes-Benz, and its current portfolio reflects this positioning: The XF competes in the same segment as the 5 Series, for example, while the F-Pace goes head-to-head against the X5.
Moving upmarket is easier said than done, and there’s no word yet on precisely how Jaguar will pull it off. We know that it’s starting from scratch; it canceled the new XJ months before the big sedan’s unveiling. Automotive News Europe learned that one of the models being designed to jump-start the brand is an electric four-door GT that will cost about £100,000 (around $128,000) when it goes on sale in 2024. Looking further ahead, the brand will continue to expand by launching two additional electric models. Their design will “split opinion.”
“What we will not worry about is being loved by everybody, because that is the kiss of death. That is what put Jaguar in the situation it is in today, which is with no equity whatsoever,” outspoken JLR chief creative officer Gerry McGovern recently told a group of investors.
How the brand distributes its cars in the United States and abroad will change as well. JLR is in the process of splitting up into a big group; Jaguar will remain on its own, while Land Rover will get broken down into three brands called Range Rover, Discovery, and Defender, respectively. Lennard Hoornik, the group’s chief commercial officer, told Automotive News Europe that Jaguar will adopt a different business model to sell its cars, though he stopped there. He also added that Jaguar plans to open brand-specific “boutiques” in key locations.
