Jaguar's New Approach: More Vehicle Options at Lower Prices

At a recent Automotive Press Association (Detroit) meeting, Jaguar Land Rover North American President and CEO Joe Eberhard explained the company’s dynamic new approach to the U.S. market involving a significant shift in pricing, available models and customer care strategies.

It was inspiring to see a company with such defined growth objectives. Global sales for JLR have more than doubled in the past five years. To build upon this success, there has been a $5 billion investment in products and facilities with new operations being added in Brazil, Slovak Republic and Austria – all expanding the company’s global footprint.

In terms of available models, Jaguar is growing from its three-model line up to what should be a more competitive five-product portfolio, consisting of all-new or substantially refreshed 2016 and 2017 model year luxury vehicles. This will include a first-ever compact luxury SUV for the brand. Starting with the 2016 model year vehicles, Jaguar is increasing its competitive position by offering new lower pricing or more standard equipment on the vehicles with a good, better, best lineup where buyers can choose various powertrains and other features. This is a major change for a company that has traditionally offered low-volume vehicles at perceived at luxury pricing.

At the same time, the company is expanding its available technologies such as Instinctive All Wheel Drive®, lightweight aluminum-intensive architecture, Jaguar InControl® infotainment features, electric power assisted steering and soon, diesel technology. The company also opened its first-ever engine manufacturing facility in Wolverhampton and will launch a new Ingenium engine family featuring a modular design offered in both gasoline and diesel derivatives.

As I listened to this aggressive strategy, it struck me that Jaguar is dealing with just about every major automotive issue discussed today. It has to manage globalization of facilities; expansion of product portfolio as well as derivatives using a modular vehicle architecture; growth of new technologies within the vehicle such as advanced powertrain design and lightweight materials that address fuel economy mandates; and additional complexity of vehicle design with increasing electrical and software systems. And, somehow they are managing to do this while offering more features to the customer and/or lower prices on base designs. Oh, and did I mention that Jaguar has consistently ranked in the top three in the J.D. Power quality surveys since 2009?

Managing these oft-times diametrically opposed demands appears to be under control for Jaguar, based upon sales growth and profitability where the company experienced $4 billion in profit before tax in 2014. Eberhard said that company success relies on three things – brand, product and value. I would add that success also relies upon well-connected processes, the right technologies and most importantly, vision and the willingness to try new approaches.

In 2010, JLR migrated to Dassault Systèmes’ V6-architecture and then onto the 3DEXPERIENCE concept with a goal of increasing operational efficiency and reducing complexity within the product development process.