13 May 2011

Jaguar On The Move

I was reading and article in at detnews.com quoting some 'experts', some saying Jaguar was in fine fettle, while others thought it was doomed. The negative ones said Jaguar needed volume to succeed, the kind the German brands generate. Certainly volume can help with profits but that is so simplistic, as there is much, much more to it. When Jaguar was making its biggest sales, it was raking up losses. It now makes money on much smaller volumes. So much for some 'expert' opinion. So what is needed for Jaguar?

A wider range of product. Jaguar only has three models, not nearly enough. With more models and sharing platforms where possible will make a big difference. Jaguar has plans to expand its range over the next few years, addressing this serious problem.

Seek cooperation with other car makers where practical. Not so easy this one but spreading development costs is a sure way to fatten margins. Not a high priority now but will surely be pursued sometime soon.

Be innovative with style and design. Jags have to look beautiful and glamourous. Snobbish buyers in this segment want cutting edge technology too but I can't understand why. The reason is the latest accoutrements are prone to fail. I would rather have a car without the latest gizmos, but actually keeps working. So balancing the two is a problem for all premium brands.

Make sure all models are top notch. Sticking a premium badge on an ordinary or poorly thought out vehicle will, in due course, undermine your reputation. The Audi A1 is a classic example of an very ordinary car going for top dollar. Audi threw a poorly executed vehicle onto the market and when you do that too often even premium car buyers (in my view slower on the uptake than everyday car buyers) will notice. All three Jags presently are top notch and all future models must be also. I firmly believe they will.

Now for Land Rover's and a summary, see below.

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