Ford to go Oldsmobile on Jaguar?
Jaguar must “find a way to fund its own future or face the
consequences."
That’s what Ford Motor Co. Chairman and CEO Bill Ford, Jr. told journalists
in Detroit about Ford's “Big Cat." And the consequences? While the article didn’t state if Ford, Jr.
was asked that question, a high level director did answer and said Blue Oval may put the luxury marque into
“exit mode," either shutting it down or selling it.
Ford purchased Jaguar in 1989, and the brand
is part of Ford’s Premier Auto Group (PAG) which includes Aston Martin and Volvo. But Jaguar’s S-Type,
X-Type, and XJ sedans are among the lowest selling vehicles in PAG. Ford hasn't given up on the band just yet,
having infused $2.1
billion last year after the brand lost $745 million in 2004.
Newly appointed Ford of Europe chairman Lewis
Booth has thus embarked on an ambitious plan to preserve the Big Cat's remaining lives. Besides touting the new XK
coupe (pictured) and convertible, Jaguar is planning to sell fewer but well-equipped vehicles, making Jags
more exclusive. This is similar to Porsche, whose vehicles make the highest profit per each one sold.
Other
changes include updating Jaguar’s manufacturing facilities and modernizing its models’ sheet-metal.
With Jaguar's rich heritage and evocative design language, it's been frustrating for company officials and marque afficianados to see the Big Cat falter so badly for so many years. It is hard to see the Blue Oval shuttering the brand, but we wouldn't rule out Dearborn eventually seeking out a suitor if the latest capital infusion fails.
[Source: The Sydney Morning Herald]
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Reader Comments (Page 1 of 1)
Scott 12:32PM (2/25/2006)
There's no big secret to Jaguar's problems. It used to be a brand with horrendous reliability/quality ratings. That's not the case any more. The biggest problem is the lack of change - how long was the current XK on the market looking exactly the same? 10 years? That's insane in the finicky luxo-coupe market. The current XJ looks almost no different than the previous gen, and you could really go back twenty years and the XJ has barely changed. It's one thing to try and keep a consistent styling theme, but even the beautiful curves of the big Cat get stale after decades. The S-Type was well-received when it debuted, but that was too long ago. Had it been updated on a more appropriate 5-6 year redesign schedule it would probably be selling well. The X-Type? Well, the idea of the X-Type is okay in my eyes, but the execution was lacking. Jaguar has no place for a FWD Ford-based vehicle in its lineup. Had the X-Type been RWD and truly luxurious with top-notch quality and a superb engine I think the public would have responded.
I think the new XK is a step in the right direction for Jaguar (although I'm not hugely fond of the headlights) and the conceptual drawings of the next S-Type look gorgeous. The Jaguar name still has huge cache, it just needs the cars that fit that cache. In comparison tests a Jaguar has to come in higher than companies like Lexus in ratings like luxury, fit and finish, interior sound levels, and engine smoothness. That's what I think of a Jaguar.
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Michael Karesh 12:48PM (2/25/2006)
Another problem for Jag is that it takes a huge amount of money and engineering resources to play in the luxury segment these days. If Ford isn't willing to put up the money, it's going to have to sell Jaguar to someone who will--likely VW or BMW.
Jaguar definitely won't go the way of Olds--it has way too much positive equity for that. In other words, it's not like Saab. In the right hands it would do very well.
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kevin 12:51PM (2/25/2006)
Wow, if he shut down Jaguar, Bill Ford Jr. would go from being a crappy Ford CEO to being a catastrophic one. Don't you just hate it when people inherit positions of power simply because of something their dad did?
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charlie 1:25PM (2/25/2006)
LOL, all that matters for these brands is their image. A lot of the brands that the domestics own just probably can't recover- who really cares about a Pontiac, or a Lincoln, or a Mercury? Jaguar is one of the few brands that american ownership hasn't ruined. It still has a soul and character. They should drop the x and s-types and just sell the XJ and XK using a Porsche business model. If they make profit there, then they can think about expanding. Jaguar has a huge advantage, in that while many of the people who are in the market for a large luxury sedan wouldnt put an Acura, Infiniti, or Cadillac in the same category as a Mercedes, BMW, or even Audi or Lexus, most people would be readily willing to compare a Jaguar to a Mercedes. The XJ Super V8 kinda kicks ass.
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Autoblog Sucks 1:39PM (2/25/2006)
You cant kill Jaguar its just such an icon. I dont want jaguar prancing around aimlessly under the ownership of some worthless japanese econobox, or making a profit through writing history books about when it used to be selling cars rather actually selling them. Howcome aston martin isnt going the same way hmm??
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Ryan 2:30PM (2/25/2006)
I hate to say it, but why not throw in a crossover or and SUV into the lineup. It seems like that might help to get more footsteps into the dealers. Until the very very late 90's I always thought Jag's were kind of ugly.
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Alex 3:06PM (2/25/2006)
I hope that Ford does sell Jaguar. While Ford has done a good job at improving the build quality and reliability at Jaguar, they have done a terrible job at managing the brand and are reaping the results of that marketing incompetence. What they needed to do is rebuild the cache of the brand at the top. Yet it took 6 years for them to merely revise the XJ, and 14 years to produce an entirely new car, which most people can't even tell is new. Mercedes, BMW and Lexus have shown the way -- you do not build (or re-build) a luxury brand from the bottom. Yet Ford preempts the brand's resuscitation by eroding it from the bottom with a re-hashed Mondeo clone in a grab for short-term profits at the cost of long-term brand equity. As for the S-type, it's an unexceptional car appealing to an older demographic. So not a great symbol for the brand. I was hoping that Jaguar might exploit the the golden opportunity provided by the recent styling excesses of the German makes, but having seen the latest XK's derivative and unexceptional styling, I now think that Lexus is more likely to take the advantage in this area. I'll await the next S-Type, but I am pessimistic about Jaguar's future under Ford ownership. I would love to see what BMW could do with this brand.
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Gardiner Westbound 3:16PM (2/25/2006)
Most things Ford touches go straight to hell. Jaguar has improved!
I'm not sure major, expensive redesigns are required. The infrastructure should be in pretty good shape by now. The Jaguar name still has terrific cachet. I'm confident if Ford keeps polishing and refining this jewel it will sell.
For certain, Ford has to make a firm commitment to Jaguar's future. Nobody is going to invest in an expensive car that may be discontinued next month.
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G. Snyder 5:02PM (2/25/2006)
"Most things Ford touches go straight to hell. Jaguar has improved!"
Wow - what an unqualified statement. Volvo is doing very well. Mazda is having a resurgence. Land Rover is back from the brink. Aston is at least relevant once again. Things are not ALL bad at Ford.
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TriShield 5:44PM (2/25/2006)
Cut Jaguar but keep Mercury and Lincoln?
Ford really is run by idiots. If anything the resources completely wasted on Mercury and Lincoln would go a long way to making better Jaguars.
Jaguar is more of a match for Cadillac and other real luxury brands than Mercury or Lincoln will ever be.
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Dave M. 11:23PM (2/25/2006)
I think Ford is in the strongest position for resurgence....it's only been the last few years I've come to appreciate Jaguar. I had a chance to drive a new XJ and it is not only gorgeous, but a solid piece of granite. I really wish I had the 75k....
Volvo is good, Mazda is good, Lincoln and Mercury are slowly rebounding (although new some new, distinctive product...). Once Ford replaces the Focus with the euro version and tarts up the appearance (and engine) of the 500, they'll be there. Much better shape, market wise, than GM or Chrysler, in my opinion....
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Rene Curry 11:42PM (2/25/2006)
The problem with Jaguar is the low volumes in a market segment & price range that customers won't accept borrowing from the Ford parts bin. To change a Jaguar low volume model over requires as much or more effort than a high volume Ford model. They have two things to do or dump Jaguar.
Figure out how to effectively manufacture at lower volumes like GM did with Soltice -AND- set up a dealer network to sell all the Premier vehicles (except Volvo) under one roof to get the exposure and volumes up.
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Jason Boston 3:18AM (2/26/2006)
thank you Ford for keeping the Jaguar marque alive when U.K. couldn't keep their car companies running. it's someone else's turn to dump billions into their poorly run company. who would like to be the deep pockets for the old Brit next? Ford knows cars and too bad the Jaguar management couldn't do better with all those green american dollars. dump them i say, and focus on Ford.
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michael 3:51PM (3/09/2006)
I feel strongly that Ford should definately 'dump' (as you yanks say) Jaguar. Its a shame such an English icon was snapped up by boring old Ford in 1989, the product design reigns pulled in and dull dull dull American styling introduced. Everyone here in the UK knows that a european giant such as VW or BMW would do a much better job than Ford has done!!!!
OK its obvious we don't have a good record with domestic car production in the UK....BUT the germans know what to do. Just look how they turned around MINI and Bentley. They gave us the investment and let the English run their own ship. The Americans are too controlling and have no clue about making cool cars.They purchase our brands as a hobby and mess 'em up.
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Steven Daniel 8:27AM (3/10/2006)
If it must go, lets hope they sell Jag and don't sink it. There are some us former and present owners who love the classic style and appreciate the evolution instead of revolution in its stylng and engineering i.e. Ford's tremendous improvementg in the marque's build quality. On the other hand, the current XJ has the the profile of a Volvo which, I believe accounts for the tremendous loss of sales.This isn't scientific, just the opinion of every XJ fan I've spoken to (including many dealers).
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jenz 5:50PM (4/12/2006)
I hope Ford sells Jaguar. I am not a Ford fan at all and was very upset when I heard Ford was buying Volvo (my car of choice). Ford has a way of ruining car lines...one by one. It should not be a mystery why the Jaguar is doing so bad. Can you honestly tell me that the Jag S-Type and X-Type do not look like Ford's Tempo? It makes me sick. I had hoped Ford would not ruin Volvo like it ruined the Jag line, but I am starting to see the same trend with the low-end Volvos and even the S80 (now looking more and more like the Ford 500). Same is happening with Land Rover...beginning with the FreeLander. What Ford needs to realize is that people do not want to pay top dollar for reincarnations of their low end models. Over the years Ford models have improved at the cost of Jaguar, Volvo, RangeRover, etc. Ford is not only killing itself, but their "premium" brands too. Way to go. Please, do us all a favor and let Jaguar go so it can rise again. PS, Sell Volvo too while you are at it, please.
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