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Jaguar sold 1,065 cars in the United States during November, down 15% from the same month of last year. For the first 11 months, sales were off 5.8% to 13,269. In the luxury end of the American car market, Jaguar has been the most visible failure.
As a contrast to Jaguar’s lack of success, luxury market leader Mercedes had sales of 335,246 up 5.1%, in the first 11 months. BMW followed close with sales of 311,398 for the same period, up 4.4% year on year.
One of Jaguar’s problems is a lack of models. Jaguar has four: the XE, XF, XJ and F-Type. These will be joined by the F-Pace SUV next year. The XE, with a starting price of $34,900, is in one of the most competitive parts of the market. These cars are meant to bring in younger drivers by offering a low price point. BMW, Mercedes, Audi and even Cadillac also have models at this level. Put another way, the field is crowded.
The XF, with a base price of $51,900, and XJ at $74,400 are also in parts of the luxury market with several competitors. The XF’s four-wheel-drive model and advanced electronics have nothing distinctive that is not offered by other cars in its class. Its highest end horsepower car does not have an engine any more powerful or efficient than any other.
The flagship F-Type has been described as one of the best luxury sports coupes in the world. However, its sales are so modest that they cannot pull the overall brand out of its ditch:
For Jaguar, sales hit 1,065 units, down 15 percent for the month. The growth leader in November was the Jaguar F-TYPE which has it best November sales month with 432 units sold, up 15 percent versus 377 in November 2014.
Six months and 3,000 and I am still impressed with my XJ. So far I have not had to return to the dealership for service and that is quite unusual for me.
I can live with out them but IMO Jaguar needs to get onboard with more of the latest tech features, especially in the safety area. Offering more for less as with the 2016 is a move in the right direction.
In my area I have seen four XJ's and one XF on the streets. I believe I have the only Rhodium Silver as I have not seen another. It is kind of nice not seeing allot of Jags but than their are times when I feel it would be nice if the car was a little more popular.
I think reliability perception and age of drivers comes into play when talking about low sells. IMO Jaguar is on the right track but I just hope it is not a case of to little to late. My advice to Jaguar would be to make sure the advertisements and commericals are exciting and inviting and make certain customer service in all areas is top notch.
Jaguar should not have killed off the XK. It needs a 2x2 roadster. I am guessing the XK did not fit in with the rectangular grill brand ID of the other models. So basically they want all Jaguar models to have the same boring face like Audi's.
If Jaguar wants to gain share with the younger crowd they need a car that beats the Subaru WRX STI in performance & price. At work, it seems that this is the preferred car for young engineers and other up-and-coming professionals. Not to mention the amount of money they throw at them with modifications and performance upgrades. But if Tata motors wants Jaguar to be exclusive, they are doing an excellent job!
Polyesterpig says: But if Tata motors wants Jaguar to be exclusive, they are doing an excellent job!
Well, IMHO that's my reason for purchasing the Jaguar vs BMW/AUDI/M-B/LEXUS, etc.
When you don't want to be like everyone else, well, you've got to do something different.
You know, not everyone drives a Rolls, Bentley, Maserati; their audience is quite exclusive and production numbers are limiting but that's the point. Last week while stopped at a red light in my community, I saw three M-Bs coming in the opposite direction and also there was an AUDI; then making a right turn was another M-B. And then I thought boy I like not seeing my particular automobile everywhere on the road. Ford did not help the Jag when they owned it and I think Tata motors is now taking this automobile to the next level.
I've not had any vehicle problems with my XJL after taking ownership in Nov. '14. The newer models coming online as well as the extended maintenance program being introduced will help in some Jaguar sales but I don't think Jaguar sales will ever surpass M-B and Audi and BMW.
I do not think that Mr. McIntyre has any clue what he is talking about. On the contrary, success is not measured in units sold but in hearts/minds captured. To do so profitably in economic terms (unlike Tesla, for example) is icing on the cake. Lamborghini sells 2,600 cars per year across two models and the sales fluctuate by 20% or more year to year. Yet Lamborghini is hardly a failing brand.
Companies do not day trade their customer base so unit sales will fluctuate from time to time. In my opinion, Merc/BMW/Lexus/Audi cannot even begin to capture imagination. Drive them. Aside from the BMW and some Audi's, most drive like a vat of warm tapioca pudding. Yet the BMW's and the Audi's look the same with longer wheelbases. Jag is decidedly more agile; the styling is great; and the value is much better in real terms.
On the model variability, I don't buy Mr. McIntyre's argument. Has he really driven any or all of these cars? I just traded my 2010 XF Portfolio, which was a clean and amazing car for a 2011 XJ that was hardly used. While the XJ ride is no where near as sporty as the XF (and the B&W sound system in my XF was better than B&W system in the XJ), there is still no large saloon that even comes close in overall performance and value. My buddy has the supercharged F-type and that car is just insane. Jag had three models in 2010. Today they have 5. If the lack of models explains the "fall", then how did Jag grow over the last few years like it has?
Regarding volume impacts, look at Ferrari. Ferrari sells even fewer cars than Jag, yet which would someone rather pull up in? A Jag/Merc/Audi/BMW, etc. or a Ferrari? Tesla has the same issue. Were it not for computer nerds buying them in about 10 markets, their volumes would be significantly lower and still they top out at only 50,000 units per year with one model. Volumes are an argument for GM or Toyota, not Jag. While Merc and BMW have greater volumes, they also reduce to the greatest common denominator, which is vanilla in my opinion. There is enough political correctness in the world. I don't need my cars to be politically correct too. I love the edge of the Jag brand today versus the staid image pre-2009.
Forbes has a different take on the same data: Forbes Welcome
I think Jags biggest problem right now is that all the sedans look the same... Some common language needs to be shared but I challenge anyone who can tell an XE from XF. They need to be a little more distinctive. Lastly, the XJ always had quad head lamps. They were so popular that Mercedes, Lexus, even Bentley copied them. The next generation XJ needs to have similar styling (head light wise) as Bentley Mussulane. Take a look:
Lastly, the new interiors of the XE, XF, F-pace are too generic and no longer unique. I would rather have BMW, AUDI, Mercedes interior in every one those segments over the Jag. Supreme agility and driving dynamics win magazine shootouts. But comfort, design, good materials sell cars in the luxury car segment. This especially more important in today's crowded market of "near-luxury" cars.
Lamborghini sells 2,600 cars per year across two models and the sales fluctuate by 20% or more year to year. Yet Lamborghini is hardly a failing brand.
Hardly a good or fair analogy.
Lambos are low volume exotics that are highly profitable for the manufacturer and hold their value well. Whereas Jags are no longer considered exotics and are hemorrhaging $$ for Tata (which thankfully has Land Rover to make up the shortfall), and used Jags aren't worth the paper their warranty is printed on.
We need Jaguar to be self-sustaining and profitable so it will continue to innovate and make beautiful cars. Right now it's just leeching off of its LR sibling and that's highly unhealthy.
Definitely agree on the interiors. I thought the XF interior took a step back in 2012 with the black rubber. Black rubber did not work well for Ferrari and Maserati (infamous "sticky" issue) so I can't imagine why Jag went that route. My 2010 definitely looked better inside than the 2012+ years; however, the newer software was definitely nicer. I'm not a big fan of the leather or faux leather used in the German cars. The seats are no where near as supple, but I'm sure they can probably take a bullet.
Lambos are low volume exotics that are highly profitable for the manufacturer and hold their value well. Whereas Jags are no longer considered exotics and are hemorrhaging $$ for Tata (which thankfully has Land Rover to make up the shortfall), and used Jags aren't worth the paper their warranty is printed on.
We need Jaguar to be self-sustaining and profitable so it will continue to innovate and make beautiful cars. Right now it's just leeching off of its LR sibling and that's highly unhealthy.
I was using the most extreme example of Lamborghini to refute the basic volume premise of the author of the original article. Jags are not exotics today, but no sense shedding tears on this because I am not aware that they have ever been exotic. British exotics include second cousin Aston Martin or Lotus.
The finances are public record--you can see them at http://corp-content.tatamotors.com.s...m-Q2-FY-16.pdf. You may notice that Land Rover sales are actually down 3.9% year over year for the most recent quarter, while Jaguar sales are up 15.3%.
Regarding the profitability of Jaguar, there is a lot of parts commonality between Jaguar and Land Rover (e.g., engines, components, etc.) which clouds the profitability question. Each company benefits from these relationships because they get to amortize the development costs over a larger number of vehicles sold, which reduces per-vehicle part costs and increases per-company profitability. 5 liter engines would be more expensive for both brands if they had to develop de novo engines within each brand and not share the AJ133 engine. Reuse is common--my old Land Rover ran a Volvo engine and tranny. The Evoque uses a Ford Ecoboost as does several of the recent Jags. The trends are similar within Fiat with Ferrari/Maserati, etc.
As for depreciation, the cars do drop off quickly. I traded my $60K new XF for $18K last week after 62 months. But there is nothing abnormal to it. You can compare the depreciation curve of Jags to other luxury brands. There is not much difference between them. For example, the comparable E class to my XF at the time was $67K and its trade value is $19.5K today, which was worse than my XF. My Maserati was about $100K new in 2002. Today, that car is worth less than $30K. Audi and Porsche are the luxury brands that tend to hold value better.
My take is that Jaguar has created the ultimate large luxury passenger car sedan, outside of the Rolls Royce.
Unfortunately, at least here in the USA, most vehicles on the road are trucks, i.e. "pickups", or derivatives of trucks, i.e. minivans, full sized vans, sports utility vehicles, recreational vehicles and "off-road" utility vehicles.
Thus, the Jaguar XJ passenger cars, and especially the XJL models are not as appreciated by today's vehicle buyers as they once were, and therefore are not in great demand.
Being retired, the wife and I no longer have to transport children, friends and their gear to the beach or sporting events, nor have I ever been into farming or animal husbandry, construction, or other chore requiring a truck like vehicle.
So I do recognize most people no longer want to buy or own an "ultimate passenger car" like the XJ or XJL even though I think they are unsurpassed vehicles for driving enthusiasts.
Funny, the article says that Mercedes sells 400 cars in a few hours, but they do not say which cars. I'm sure there are a hell of a lot more C-Classes and SUVs sold than anything else. That's what people are buying these days.
Jaguar isn't making sales because of 2 model types that they are currently not selling; an SUV and a small sedan/coupe. Once the XE and F-Pace are on the market and at dealerships, I fully expect sales to at least double.
I purchased my Jag XJ on a whim. I was driving a 2014 Buick LaCrosse P1 and was looking at trading for the 2017 when it was released.
One day I saw two new Jag XJ's on the road and thought what a nice looking car. I knew about Jaguar and had liked the looks of the XJ but had never considered one because I had also heard about reliability issues.
I went to the dealership just out of curiosity and as my preference was a black car I was thinking that when I did trade I would get a different color.
The dealer had a 2014 and a 2015 XJ neither were black. They had several XJL's most of which were black.
On the show room floor was a 2014 XJ Rohdium Silver that caught my eye as being very striking. As it was July and the 2016 would be coming out soon the car was greatly reduced in price.
After looking the car over I took it for a test drive. The car met my needs and appealed to me more than the 2017 LaCrosse would have. I did not care that the car was a year old, the fact that it was brand new, 11 miles , never test driven and was on sale for a price that I could not resist, I traded the LaCrosse on the spot.
The dealer had 5 new 2014 Black XJL's on the lot, several 2015's and 1 2015 XJ. At least at my dealership these cars seem to sale but they are very slow sellers. The dealer now still has 4 2014 Black XJL's on the lot.
And how do you compare the ride and handling of the Jag vs Buick?
My wife says both are 'old people cars'
The Jag rides and handles much better than the LaCrosse but the Jag is riding on a 119" wheel base compared to the 111" wheel base of the LaCrosse.
Both cars are not the cars that they were yesterday and I think the old peoples car is just and unfortunate misperception, as both have more of a sportier look than some of the past cars.
And how do you compare the ride and handling of the Jag vs Buick?
My wife says both are 'old people cars'
Hey, watch what you say when you say "old people cars." (chuckle)
We've owned two Buick Enclaves and love these cars--can't compare tho to the XJL--my wife agrees w/ that.
Last edited by retriever-007; 12-31-2015 at 06:20 PM.
My take is that Jaguar has created the ultimate large luxury passenger car sedan, outside of the Rolls Royce.
Unfortunately, at least here in the USA, most vehicles on the road are trucks, i.e. "pickups", or derivatives of trucks, i.e. minivans, full sized vans, sports utility vehicles, recreational vehicles and "off-road" utility vehicles.
Thus, the Jaguar XJ passenger cars, and especially the XJL models are not as appreciated by today's vehicle buyers as they once were, and therefore are not in great demand.
Being retired, the wife and I no longer have to transport children, friends and their gear to the beach or sporting events, nor have I ever been into farming or animal husbandry, construction, or other chore requiring a truck like vehicle.
So I do recognize most people no longer want to buy or own an "ultimate passenger car" like the XJ or XJL even though I think they are unsurpassed vehicles for driving enthusiasts.
Nobody seems to have mentioned dealership numbers as a brake on sales. How many Jaguar dealers are there in relation to BMW/Mercedes/Audi/Lexus ?
Most people will be reluctant to buy an up-market car with a dealer 50-100 miles away. Of course there may be a lot more Land Rover dealers so the obvious move is for them to take on Jaguar unless there is another Jaguar dealer nearby. One thing is certain; if you want to sell lots of XEs and XFs you need the dealers in the right places. No dealers, no sales !!
Nobody seems to have mentioned dealership numbers as a brake on sales. How many Jaguar dealers are there in relation to BMW/Mercedes/Audi/Lexus ?
Jaguar & Land Rover in 2012 stated that they wanted to have around 200 dealers total in USA
Goss said that this plan seems reasonable, according to Autonews. There are currently 243 Jaguar or Land Rover dealerships in the country. He said he hopes that about half of the 97 stand-alone Jaguar or Land Rover dealerships will merge. He said that it’s sensible for the two brands to be housed in the same building. He is focused on consolidating seven markets where the two brands are strong.
12-29-2015, 07:28 AM
Article- Jaguar Continues to Fail in US Market
