Jaguar’s futile attempt to defeat BMW and Mercedes is over. As Automotive News explains in an in-depth review of Jaguar’s restructuring plans, former CEO Ralph Speth’s ambitions to sell a million Jaguar and Land Rover vehicles globally did not work.
Despite some solid growth and the success of the I-Pace EV, Jaguar sales fell to 102,402 in 2020, or by 37%. The coronavirus pandemic has played a role in this recession, but it can’t take all the blame. BMW sales fell just 8.4% over the same period. BMW’s high-performance M division alone sold 40% more vehicles than the entire Jag business.
Decisive action was required. CEO Thierry Ballor thwarted a ten-year-old plan in which he optimistically tried to present Jaguar as a direct competitor to famous German premium brands. Jaguar will aim for Bentley or Porsche in the future and will be fully electric by 2025.
As a reminder, Jaguar announced in February that it is phasing out its new all-electric XJ. Although the project was close to completion. Other casualties include the J-Pace crossover and the car-like Land Rover EV known as the Road Rover. This is due to the fact that Jaguar ditched the all-new MLA electric vehicle platform and switched to selling more expensive cars.
BNP Paribas lead analyst Kumar Rakesh explains that the Jaguar brand will not close.
It is a critical element for JLR to achieve CO2 compliance. Land Rover alone cannot achieve this. Jaguar’s confirmed switch to electric vehicles only in 2025 removes the need for Land Rover to ditch ICE power at a much later date.
So Jaguar, a name with a rich history and an incredible old catalog of classics, but little relevant to many modern buyers, will continue to exist.
Read also that the new Jaguar I-Pace Black has expanded its EV lineup.