JAGUAR CEO announced it will be culling models in its lineup from five to one - the three will be 'eliminated' due to loss of profits. Instead, the company will focus on cars customers are buying - all-electric SUVs . Jaguar Land Rover CEO Adrian Mardell announced in June the company will be cutting all models that don't bring in profit.
"We are eliminating five products, all lower value," Mardell said, quoted by Automotive News Europe . He said the five models being axed represented a loss for the company, as they don't sell very well. "None of those are vehicles on which we made any money , so we are replacing them with new vehicles on newly designed architectures," he continued.
Read More about Land Rover With the average selling price of Jaguar or Land Rover cars being around $90,000 and the cost of production, unsold inventory is a huge loss. All five models from the company, owning both Jaguar and Land Rover, were Jaguar vehicles. "We are going to lose products, but they are not the rich ones," said Mardell.
Mardell noted the three best-selling vehicles for the company were Land Rover vehicles - the Range Rover , Range Rover Sport, and the Land Rover Defender. Most read in Motors Those three vehicles made up 85 percent of the company's profits last year. Jaguar, on the other hand, only sold 15,324 this year compared to nearly 100,000 Land Rovers.
The F-Pace EV SUV is the best-selling Jaguar and will inspire three more from Jaguar. JLR is building a new platform, the Jaguar Electrified Architecture (JEA), which plans to add a four-door Grand Touring SUV to the lineup, reported Jalopnik . A concept for the vehicle will be revealed sometime this year.
Land Rover's new business model will heavily depend on the demise of Jaguar vehicles. "Our business model is not going to be a succession of increasing variable marketing [e.g.
discounts] and fixed marketing expenses to try and keep our plants full," he continued. Three new Land Rover EVs will hit the market, one of which will be an all-electric version of the Range Rover. "They will supplement and replace revenue streams which are modest and value decretive," he said of the new Land Rovers.
The new Octa version of the Defender is said to cost over $200,000, but it's not an EV. The Sadaf V8 version of the Range Rover is available in the Middle East for $415,000. Read More on The US Sun Richard Molyneux, Jaguar's chief financial officer, is in full support of the company's restructuring.
"This really is a once-in-a-generational opportunity to reset, redefine, and relaunch a truly iconic British brand," he told The Globe and Mail ..
