Below is the brief report on Jaguar's sales titled...

Jaguar Continues to Fail in US Market


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.

 

Extending the warranty and complimentary maintenance for an additional year was a step in the right direction. Taking it to 6 years would speak volumes about Jaguar's confidence in the QUALITY of their product and shake up ALL of the competition! IMO they produce the most attractive cars out there, there's just the nagging public perception about reliability that must be overcome.

 

Totally agree about beautiful cars! Unfortunately for some (me) reliability problems are more than perception. A CRUCIAL factor for me getting the F-Type was the warranty/roadside/service coverage (it already covered the radiator replacement at 83 miles). The 2000 XKR I just sold had the following repair history (since I bought it in 2006)
Replaced Parts:
- Coolant hoses (11/2/15 @179k)
- Oil cooler hoses, battery (9/10/15 @177k)
- Fuel pumps, sway-bar bushings, rear-view mirror (9/1/15 @177k)
- Upper and Lower Transmission hoses (8/14/15 @177k)
- Wheel speed sensor harness (2/27/15 @173k)
- Mass Air Flow Sensor (2/18/15 @173k)
- Radiator (1/16/2015 @172k)
- Left rear wheel bearings (5/2/14 @167k)
- Mass Air Flow Sensor (9/23/13 @164k)
- Thermostat (9/3/2013 @163k)
- Water Temp Sender (8/30/13 @163k)
- Supercharger seal clamps, front brake rotors & ceramic pads (6/26/13 @162k)
- Supercharger seal (5/20/13 @162k)
- Coolant expansion tank (1/17/13 @160k)
- Throttle Body & Air Mass Meter tube (12/21/12 @159k)
- Knock sensor assemblies, heater hoses, supercharger seals, motor mounts,
- Serpentine Drive Belt, Supercharger Belt, Knock Sensor, Heater Hoses, Bypass Hose, Expansion Tank Hose (5/3/12 @152k)
- Temp Sensor, Thermostat, Bypass Hose (6/2/10 @119k)
- Oil Pan, Transmission Flush & Conditioner (9/15/10 @124k)
- Fuel Pumps (10/2/09 @109k)
- Fog lights, Valve cover gaskets & seals (4/27/09 @102k)
- Oil filter cap, expansion tank cap, cooling hose, rear brake rotors & ceramic pads
- Throttle body (used) (3/21/08 @86k)
- Wiper reservoir, coolant expansion tank (2/26/08 @84k)
- EGR pipe, Acc. Belt tensioner (2/1/08 @83k)
- Front brake rotors & ceramic pads (11/9/13 @60k)
Head gaskets, resurfaced cylinder heads, water outlet o-rings, water pump, valve cover gaskets, spark plug seals, timing cover gaskets, crankshaft seal, intake manifold gasket, timing chain tensioners, breather hose, timing chain guide rails, plenum gasket, thermostat, heater hoses, timing chains, expansion tank hose, ABS control unit (rebuilt) (1/11/08 @82k)
- Coil, valve cover gaskets, spark plugs (7/24/06 @53k)
- Battery (6/14/06 @50k)
- convertible hydraulic lines

 

Not bad for a 15 year old car with close to 200k miles. Most of those repairs seem appropriate for the age/mileage of the car at the time.

However, that's not to say you are wrong about the reliability issue. My clutch exploding at 800 miles (during a gentle shift) was totally uncalled for.

 

Their commercials are splashed all over the TV...

 

I agree! However, my wife and others just don't get it. Hence the perception issue.
What also hurts is the cost of parts relative to a high-volume car (Toyota, Ford, etc.)

 

The thing is, these 15 year old Honda/Toyota/Chevrolets need all this same maintenance, they just don't get it. Steering is loose, suspension creeks, brakes hardly work, leaks everywhere and a strange whirring noise in reverse and slow 1st... But boy are they reliable!

 

That's a valid observation as most of those owners are not fanatics about their cars. To the majority, the car is simply a tool, as such they are not on high alert as to the cars performance and or its behavior.

Alternatively, the F-Type owner has a deep relationship with their car and does what I'm doing (forum participating) right this moment!

 

This a pretty sobering report. In my opinion, Jaguar needs to get back to its roots with motorsport. I see they are entering Formula E, which is a good first step. But I'd really like to see them make a return to Le Mans!

A car like a Jaguar is meant to capture your imagination. People need to feel like they're part of a legend! Without that, they're going to have to compete with BMW and Merc on a technical level, and I just don't think they have the resources to do that.

 

Honestly, I don't know why they're wasting their time on both an XE and XF. They don't need it, they're the same car with different wheelbases, they aren't Mercedes or BMW, never will nor should be. They need to accept that Jag is a 3-car company. Maybe 4 if they really have to have an SUV, but even then it makes more sense to just shore up LR.

Growth comes from either quantity or quality. And you don't see Omega making $10 watches to compete with Casio, and they've been doing that same thing for a very long time. Mercedes is a long way from what they were, the undisputable best cars on the road? How can you give that up for dividends? It's just sad...

Whatever, my opinion. I got my car, they're business dealings are of little consequence to me at this point.

 

I'm sure its crossed a few minds here, but quite possibly, from both a corporate perspective and managerial culture all the way through the brand, Jaguar may have no desire to "compete" on the same field as Mercedes, BMW, Lexus or Cadillac.

Similar to the most iconic brand of the last decade, Apple... Jaguar may be perfectly content offering fewer models, and building a prestige brand, while selling fewer units with heftier mark-ups. Merely a different strategy for boosting the bottom line...

The race for most units sold seems to be a guaranteed formula for building less expensive cars, while cheapening production costs, and therefore quality and reliability, at the same time.

I do however agree with those that mention the nameplates reliability reputation over the last 30 years or so, as being an impediment to remarkably increased sales. Though Tata Motors seems to be quietly moving the brand up the JD Powers satisfaction surveys, with numerous top 5 rankings in the last few years, it will take some time however for this to matriculate through public perception and drive meaningful sales increases.

 

I totally agree, talk about driving a car till its wheels fall off.

 

I think that Jaguar has difficult markets to penetrate. In general, older buyers have more money to spend on cars. A lot of us older Jaguar lovers do not like the styling of late model Jaguars. We tend to like the more stately classic Jaguar lines. Even though Tata tried to retain some of the classic looks in the new models, the new XE, XF, XJ models are not all that attractive. They look like BMW/Japanese clones. The F-type has its own more aggressive look, and is in general more appealing. But for that kind of money in the sports car market, I’d purchase a new Corvette.
I do love the Aluminum bodies and high tech drivetrain, but the common consumer doesn’t really care how the car is manufactured, they just want reliability and transportation.

Jaguar is trying to market to a younger generation, but how many young buyers can afford a new Jaguar. $50+K. Perhaps the $35K+ XE will attract some new younger buyers, but as was stated, that market is already crowded. From my perspective, the XE doesn’t stand out of the crowd.

One other thing Jaguar has to stop is the rapid depreciation. Car buyers want a car that l has significant value when it is 5 to 7 years old. This is great for us used Jaguar purchasers who realize their true value. Jaguar likely doesn’t get as many return customers once they compare resale value of other cars to their used Jaguar.

Cadillac did a good job of recreating itself. I suppose that Jaguar is trying to use a similar business plan but with a lot lower sales.

 

I don't know why people keep accusing the new Jaguar line of being Japanese clones. I guess I just don't see it. To me, the X351 XJ is the most unique looking sedan since... maybe ever! The X150 XK was certainly unlike anything else on the market. The original XF was a beautiful design that, in my opinion isn't matched by anything from BMW or Merc. Although, the look has been watered down somewhat. Perhaps the new XE is sort of like a watered down XF, but I think it looks good and I wouldn't call it a Japanese clone, and I don't think younger buyers would either. Jaguar is getting very high praise today thanks to Ian Callum's vision in the looks department!

I agree with you fully on rapid depreciation. The true cost of owning a Jaguar is enormous. And the lease deals always suck because of the depreciation, and probably most luxury cars are bought new with a lease!

 

Jaguar has design down pat. Ian Callum's eye is spot on. And it hasn't been too long ago that their JD Power initial customer complaint list (whatever it's called) ranked very well. The way I see it, corporate has done a poor job of letting the world know about their products. I see 10 MB ads or BMW ads for every one Jaguar ad and then the message is not clear. Spell it out! Let everyone know about initial quality reports, the longer warranty and performance numbers. Tout the beautiful interiors and drivability of the saloons. A repeated, consistent message of quality, great looks, great performance and panache will start to change perceptions. Your young, upwardly mobile professionals flock to BMW and Mercedes because they are status symbols; it's all about that subjective feeling one has about a car. Jaguar has the products to compete and I think the F-Pace and XE will tap a competitive segment of the market. The word just needs to get out there that the Jag deserves to be in that company and it's good to be different.

 

Well, according to that article (assuming the numbers are all for US sales), Jaguar's sales volume is about 4% of what Merc's is. I'm surprised people even know what a Jaguar is! Very rare cars!

 

First, I agree the cars are beautiful but I don't agree the typical repair history is acceptable. My wife's 2004 325i and the 320 before that were both very reliable in comparison. The 325i has had oil and filter changes and of course brakes and tires only and other than a fuel pump failure at 186,000 miles has had nothing replaced. A very minor oil leak is the only thing I could fault it for right now.


Perception certainly is an issue. I mentioned to a friend about my recent XK8 acquisition, and she said she always thought the Jags were beautiful cars however a neighbor bought a brand new Jag a few years back and it "seemed like the flat bed was at their house every other week hauling it in for repairs"

 

With respect to jaguar marketing to "older folks" and the adoption being limited among the younger crowd -- I'm 35 -- and from the time I saw the F-Type coupe, I had to have one. I thought about a Cayman, an M3/M4, or even a new high-horsepower American car ('vette, charger, etc) -- and then immediately dismissed them all.


If you look at the "intro and demographics" thread, I bet you'll see a consistent trend toward lower numbers.


I disagree about the XE/XF -- they do need a competitor to the equivalent BMW or Mercedes options. However Jag needs make an effort to demonstrate why someone should pick something other than another (bland) german car.


I've told several of my co-workers what car I've ordered and the response I get is typically "jaguar? isn't that an old man's car?" or "don't they fall apart?" Then I show them what an F-Type is....

 

Jag let their line get old while the rest of the sector moved on. Saved by new ownership but they looked to RR first and it has paid off. Plus RR continued to sell even though they are nothing but problems. Status. Meanwhile Jag didn't have status so problems killed them. Then they let bestseller XF get old and then no stock. F is great but 400 cars per month in US is insignificant. Jag/RR is selling 500k worldwide, not bad. For some reason US is not their primary market as it is for every other brand. My F has been trouble free except for O2 sensor. As good as my '12 SLK55AMG for 2 years, it had 0 problems.

 

Jaguar should have had a model to compete with the 3 series and C series years ago. I don't know why they didn't combine LR and Jaguar dealers. You don't see Mercedes selling their SUV's at separate stores. Even if the F-Pace is real similar to the Discovery, it just doesn't look as nice, but the Discovery does suck with no V6 option, yet. Selfishly I'm glad there not as common as Mercedes or BMW, because they're becoming like Toyota's on the street.