Comments:
This message has been edited by India Whiskey Charlie on 2026-03-08 14:59:17
Quite curious what we will see on December the 2nd…
I understand the frustration here and after having seen the video it’s certainly not how I would have gone about it 😊
At the same time we need to face the facts. After the turnaround by Edwardes that finally led to the brand being sold to Ford, it’s not been all good. There have certainly been exciting cars at times but Jaguar over the last years has been losing money hand over fist in all markets apart from the UK, where it was just about break even. And they are still a business. Maybe Tata wasn’t the best of stewards but none of the previous owners have shown real success, either.
The main problem with Jaguar like with most brands that are not German in the premium segment is that the volumes simply never suffice to justify the investment needed. Jaguar, Alfa, rarely even Maserati are able to produce great cars. And then they do not sell enough (because we like them well enough in tests and on pictures but don’t buy them) to justify the investment, meaning the follow-on generation is financially not feasible, or not feasible for too long, making the once great cars old cars. It’s like with Saab, or Lancia or many other nowadays dead brands (OK Lancia is being raised from the dead again and this time not as a rebranded Chrysler for the European market).
The barriers to entry or indeed the requirements to staying in business are monumental. Building a class leading car is a hygiene factor, success will depend on your dealership and service structure, after sales, resale value, what your friends will say when they see you in one, etc.
It is possible to position a brand upwards but it’s not a profitable venture. Even Piech admitted that it would have been faster and significantly cheaper to start with a new brand than try to bring Audi up to premium (-ish - still not quite there in many markets). Lexus was successful for a while but is struggling in spite of being owned by Toyota.
So getting back to Jaguar. The current lineup is old and most models are no longer compliant to the latest regulations in key markets. You could invest a high three figure US$ million sum or even a low billion one to keep them around for a couple of extra months (and they would still not sell) or use the money for something new. I do not think they will have many more chances at a restart. Repositioning upwards to significantly higher price points would at least allow a break even at lower volumes (and they weren’t exactly selling at the lower price point). It’s possible to create a balanced business case this way but you will need some heroic assumptions on the cars actually selling in sufficient numbers (even if these aren’t high). People who used to buy Jaguars will probably not be a major customer group no matter what they do. Usually customers who turned away from a brand for whatever reason do not return.
This brings us to their current attempt at a restart - trying to appeal to a new customer group. I’m not quite sure who they are appealing to and it would be great to hear more on the 2nd of December. Whether what they say has legs we’ll see. But I think it’s safe to say that what they have been doing for the last years didn’t work in the sense of allowing them to build a profitable business that becomes self sustaining and in spite of a possibly longer term orientation of Tata than some more Western car brands they cannot sink money into the venture indefinitely 🤷🏻♂️
Again, not saying this will be a success (not very likely), I am not a fan of the video (seemingly not the intended audience). Not an easy time to resurrect a brand for sure 😊🤷🏻♂️
One more thing…
The video was viewed by around 160 million people, probably more than all previous Jaguar advertisements together 😉😂
The reactions are mixed it seems because but if one in a thousand of those who watched it likes it enough to go for a car that’s more than they sold in a very, very long time 😉
As said previously, I wouldn’t on the basis of the video but it seems it’s not being received just negatively, even if the CEO needed to justify it in FT.
The new cars need to great and compelling
I am a long time and satisfied Jag owner, but have already been waiting several years to replace my 2013 Supercharged XF and actively monitored any movement for new models. My impressions are that the Land Rover models received much more priority inside JLR. Meanwhile Porsche, BMW, MB and others have long since shifted revenue critical mass to SUVs while Jag was likely not allowed to pursue this known success formula. Their SUV entry was very late, not market competitive and seems purposefully designed to not compete with any Land/Range Rovers. Dealers have told me replacement sedans were cancelled in pursuit of the new all electric pursuits. Now, the market dynamics and economics regarding electric cars are on display and should be nothing less than chilling for the Jag management. Does it make sense for them to continue the all electric, super car pursuits? Are the vehicles even ready? We shall find out soon, but as I've already said, the new cars need to be great and compelling.
You have hot one of the most important issues…
Namely the SUV. In the past the division between Jaguar and LR / RR made a lot of sense but less so recently. While the F-Pace was in some ways critically acclaimed and the twin to the RR Velar, it was difficult to justify doing two of each in the SUV field. The sedan and estate market shrank and Jag - never a large volume player suffered. Some decisions like the development of their own engines unfortunately backfired badly as the results were less than stellar.
As for the electric vs. ICE debate, JLR is too small to pursue both in parallel for too long - even companies like VW and Toyota, with a drastically different size have an issue there.
So let’s hope the new cars are class leading. Jaguar namely won’t have much of a future if they aren’t.
Jag
I wished Jag followed the route of Aston Martin. Classy cars combining handcraft and modern technology to separate from the main OEMs.
There is a niche for a more sporty sedan for self-driving costumers that do not opt for a Bentley or Rolls due to their presence.
The same is true for a 4seater Coupe and Convertible. Positioned between Bentley GT/C and a BMW 8.
There is a niche for a more sporty sedan for self-driving costumers that do not opt for a Bentley or Rolls due to their presence.
The same is true for a 4seater Coupe and Convertible. Positioned between Bentley GT/C and a BMW 8.
It’s a risky strategy…
And Aston Martin is a perfect example of a brand that lost money more often than not. The current approach combining proven technology from AMG with management from Ferrari seems to look very promising.
The problem generally is scale - with Jaguar having a cost base that would require a significantly higher volumes or a drastically different price point to work.
Neither are easy to achieve 🤷🏻♂️
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I fully agree. However, competing with Taycan, EQS and I7 (and not Spectre) is also risky. These cars stand their tyres flat in the show rooms….
They all have their individual issues but it’s hardly a foolproof segment for sure 😊👍🏻
The EQS still uses 400V technology and did not deliver in some key areas like rear seat comfort, while the design was an in-between house of too ‘aerodynamic’ for the segment (to be nice about it) for Europe and old fashioned for China. For the latter the interior and especially the infotainment simply do not compete at the right level 🤷🏻♂️
The I7 has been designed primarily with the Asian markets in mind (visually it seems to struggle in Europe) and while I saw more of them in Shanghai during the recent trips than Taycans and EQSs combined, they were still rare as hens’ teeth. Here the manufacturer also tries not too push too hard (all electric BMWs were removed from some leasing programs, as the hot they take on the trade in is too high) for short term profit reasons.
As for the Taycan, it’s quite a nice car in the current second generation, but doesn’t really have space for four, so again a tough sell in the Asian market and in all honesty even though I like driving it I know the family would not like it, as it’s simply too cramped.
Back to Jaguar - it’s a question of alternatives. The in-house Ingenium engines didn’t deliver and the huge investment probably prevents Jaguar from doing this again. The long in the tooth V8 was replaced by a BMW unit but I guess powering the whole line-up by purchased engines would not work at this price point and a supplier would need to be found who’s willing to do it.
And as was mentioned here, the JLR division of focus between SUVs for LR/RR and a mix of cars and SUVs for Jaguar is detrimental for the latter in the current market environment.
So I find the current strategy risky but probably the best bet in the ‘between a rock and a hard place’ position that the company finds itself 🤷🏻♂️