Jaguar's decline tells tale of a tarnished brand
08-14-07, 10:42 PM
#1
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Jaguar's decline tells tale of a tarnished brand
http://www.msnbc.msn.com/id/20145762/page/2
By Roland Jones
Associate editor
MSNBC
Updated: 7:57 p.m. ET Aug 14, 2007
There’s nothing quite as sad as a great name gone bad. Jaguar once was counted among the very best in luxury vehicle nameplates, and its name was synonymous with quality and excellence.
But the Big Cat’s image has seriously eroded in recent years under the ownership of Ford, which acquired the British nameplate in 1989 and now is considering selling it.
When Ford reported gloomy July sales figures this month, it became clear just how far the tarnished Jaguar brand had fallen.
July was a terrible month for car sales industrywide, and particularly for Ford. All six of its vehicle brands saw monthly sales declines, but Jaguar took the biggest hit, with sales tumbling 43 percent to just 1,136 vehicles. Last year Jaguar's U.S. sales fell 30 percent.
What happened? Put simply, Jaguar hasn’t kept up with the times, particularly when it comes to style. Research shows Jaguar buyers are older than the average luxury car shopper. Jaguar is suffering from an aging audience, according to George Magliano, director of automotive industry research at Global Insight.
“I don’t think people under 60 are aware of the luster of the Jaguar brand name,” said Magliano. “This is a difficult market, and people don’t necessarily see the Jaguar brand as a luxury sports car any more. And over the last decade the product just hasn’t been there to grab the American consumer.”
Jaguar, which traces its history to 1922, once stood for everything that’s best about automobile manufacturing — outstanding design, engineering and performance. The Jaguar E-Type, probably the most famous Jag of all, revolutionized sports car design in the 1960s and became an icon of that decade.
Now the posh British carmaker stands for everything that’s wrong at Ford. Despite billions in investment, Jaguar hasn’t turned a profit since Ford bought it in 1989 with plans to bring the brand to a broader market and challenge the likes of BMW. A series of poor business decisions, fierce competition and declining interest on the part of U.S. buyers meant this never came to pass.
Now Ford finds itself fighting bigger problems at home, including a whopping $12.7 billion in losses last year and needs cash as it pushes ahead with restructuring. Worldwide sales are dwindling, and Ford, which sold its Aston Martin brand in March, has indicated it would like to also sell the other nameplates in its Premier Automotive Group — Jaguar, Land Rover and Volvo.
These brands still have some clout. Potential buyers have lined up, reportedly including India-based Tata Motors and a handful of British and U.S. private equity groups. Selling these top brands will add some much-needed capital to Ford’s balance sheet.
“If Ford is selling Jaguar it’s because they know they won’t be able to put money into the brand to keep it relevant and updated, and that’s probably because Ford really needs to focus on its core product line right now,” said Jonathan Linkov, Consumer Reports’ managing editor for autos.
“Car consumers are fickle, so you really have to stand out with your design these days, and so I think correct way to look at Jaguar is as an example of a brand that has been ignored and not given the funding and support it needed because Ford has had other problems to deal with,” Linkov added. “When you’re relying on sales of big SUVs and pickups for your big profits the smaller brands are going to get lost in the shuffle.”
One of the reasons for the demise of Jaguar may have been a decision to reduce costs by sharing parts across brands, so that Jaguars are built using platforms on which other Ford vehicles are built, Linkov explained. The practice is common in the auto industry but in this case may have hurt the image or quality of the luxury brand.
Another reason for Jaguar’s fall from grace is styling. Ford has been criticized for letting the look of Jaguars age said Linkov. Jaguar’s flagship model, the XJ, which starts at just north of $64,000, has kept the classic Jag look from the 1950s and '60s until very recently, he said. That look might appeal to Jag aficionados, but not necessarily to a broader group of consumers.
In fact, Jaguar’s main models — including the X-Type midsize sedan, starting at about $35,000, and pricier S-Type sedans that sell for upward of $49,000 — have deviated little from the old-fashioned Jaguar look. Only the XK sports coupe has taken a new style path.
“The Jag was the luxury vehicle for kings and queens that the common person could still snap up,” Linkov said, but the hand-crafted interiors with “burl walnut” and “Peruvian boxwood” might not appeal to today’s buyers, he added.
The lower-end Jaguar models have faced tough competition from Audi’s A4, the BMW 3 Series and the Cadillac CTS, not to mention models from Acura and Lexus, said Linkov. And Jaguar has not always measured up, he said.
“When you’re competing with the A4 and BMW, you have to offer more than a leaping cat on a basic Ford,” he said. “People snap up A4s because they want the feel of driving a luxury car, but they don’t want to pay $60,000 for it. The basic Jaguar X-Type doesn’t do that. It’s just not the really well-rounded vehicle that those buyers expect. Also, in the U.S. Jaguars are smaller than the average sedan, and that’s not good because we like our cars to be big.”
“The XK convertible and coupe are nice vehicles and they have smooth engines, but they’re really more touring cars than sports cars” Linkov continued. “And they trail the Porsche 911 Carrera, which is the same price.”
Still, despite its troubles Jaguar likely will live on. One indication that Jaguar may be able to turn the corner, at least in terms of style, is the C-XF concept, which made its debut earlier this year at the Detroit auto show. The sedan indicates a bold new direction for the automaker, said Linkov.
“This is an exciting car, and it looks like all the money Ford has spent is actually going somewhere,” he said. “More importantly, the car looks refreshing to consumers, even if it’s the same old Jaguar underneath.”
© 2007 MSNBC Interactive
By Roland Jones
Associate editor
MSNBC
Updated: 7:57 p.m. ET Aug 14, 2007
There’s nothing quite as sad as a great name gone bad. Jaguar once was counted among the very best in luxury vehicle nameplates, and its name was synonymous with quality and excellence.
But the Big Cat’s image has seriously eroded in recent years under the ownership of Ford, which acquired the British nameplate in 1989 and now is considering selling it.
When Ford reported gloomy July sales figures this month, it became clear just how far the tarnished Jaguar brand had fallen.
July was a terrible month for car sales industrywide, and particularly for Ford. All six of its vehicle brands saw monthly sales declines, but Jaguar took the biggest hit, with sales tumbling 43 percent to just 1,136 vehicles. Last year Jaguar's U.S. sales fell 30 percent.
What happened? Put simply, Jaguar hasn’t kept up with the times, particularly when it comes to style. Research shows Jaguar buyers are older than the average luxury car shopper. Jaguar is suffering from an aging audience, according to George Magliano, director of automotive industry research at Global Insight.
“I don’t think people under 60 are aware of the luster of the Jaguar brand name,” said Magliano. “This is a difficult market, and people don’t necessarily see the Jaguar brand as a luxury sports car any more. And over the last decade the product just hasn’t been there to grab the American consumer.”
Jaguar, which traces its history to 1922, once stood for everything that’s best about automobile manufacturing — outstanding design, engineering and performance. The Jaguar E-Type, probably the most famous Jag of all, revolutionized sports car design in the 1960s and became an icon of that decade.
Now the posh British carmaker stands for everything that’s wrong at Ford. Despite billions in investment, Jaguar hasn’t turned a profit since Ford bought it in 1989 with plans to bring the brand to a broader market and challenge the likes of BMW. A series of poor business decisions, fierce competition and declining interest on the part of U.S. buyers meant this never came to pass.
Now Ford finds itself fighting bigger problems at home, including a whopping $12.7 billion in losses last year and needs cash as it pushes ahead with restructuring. Worldwide sales are dwindling, and Ford, which sold its Aston Martin brand in March, has indicated it would like to also sell the other nameplates in its Premier Automotive Group — Jaguar, Land Rover and Volvo.
These brands still have some clout. Potential buyers have lined up, reportedly including India-based Tata Motors and a handful of British and U.S. private equity groups. Selling these top brands will add some much-needed capital to Ford’s balance sheet.
“If Ford is selling Jaguar it’s because they know they won’t be able to put money into the brand to keep it relevant and updated, and that’s probably because Ford really needs to focus on its core product line right now,” said Jonathan Linkov, Consumer Reports’ managing editor for autos.
“Car consumers are fickle, so you really have to stand out with your design these days, and so I think correct way to look at Jaguar is as an example of a brand that has been ignored and not given the funding and support it needed because Ford has had other problems to deal with,” Linkov added. “When you’re relying on sales of big SUVs and pickups for your big profits the smaller brands are going to get lost in the shuffle.”
One of the reasons for the demise of Jaguar may have been a decision to reduce costs by sharing parts across brands, so that Jaguars are built using platforms on which other Ford vehicles are built, Linkov explained. The practice is common in the auto industry but in this case may have hurt the image or quality of the luxury brand.
Another reason for Jaguar’s fall from grace is styling. Ford has been criticized for letting the look of Jaguars age said Linkov. Jaguar’s flagship model, the XJ, which starts at just north of $64,000, has kept the classic Jag look from the 1950s and '60s until very recently, he said. That look might appeal to Jag aficionados, but not necessarily to a broader group of consumers.
In fact, Jaguar’s main models — including the X-Type midsize sedan, starting at about $35,000, and pricier S-Type sedans that sell for upward of $49,000 — have deviated little from the old-fashioned Jaguar look. Only the XK sports coupe has taken a new style path.
“The Jag was the luxury vehicle for kings and queens that the common person could still snap up,” Linkov said, but the hand-crafted interiors with “burl walnut” and “Peruvian boxwood” might not appeal to today’s buyers, he added.
The lower-end Jaguar models have faced tough competition from Audi’s A4, the BMW 3 Series and the Cadillac CTS, not to mention models from Acura and Lexus, said Linkov. And Jaguar has not always measured up, he said.
“When you’re competing with the A4 and BMW, you have to offer more than a leaping cat on a basic Ford,” he said. “People snap up A4s because they want the feel of driving a luxury car, but they don’t want to pay $60,000 for it. The basic Jaguar X-Type doesn’t do that. It’s just not the really well-rounded vehicle that those buyers expect. Also, in the U.S. Jaguars are smaller than the average sedan, and that’s not good because we like our cars to be big.”
“The XK convertible and coupe are nice vehicles and they have smooth engines, but they’re really more touring cars than sports cars” Linkov continued. “And they trail the Porsche 911 Carrera, which is the same price.”
Still, despite its troubles Jaguar likely will live on. One indication that Jaguar may be able to turn the corner, at least in terms of style, is the C-XF concept, which made its debut earlier this year at the Detroit auto show. The sedan indicates a bold new direction for the automaker, said Linkov.
“This is an exciting car, and it looks like all the money Ford has spent is actually going somewhere,” he said. “More importantly, the car looks refreshing to consumers, even if it’s the same old Jaguar underneath.”
© 2007 MSNBC Interactive
Last edited by LexFather; 08-14-07 at 10:47 PM.
08-14-07, 10:46 PM
#2
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I used to LOVE JAGUAR. They KILLED themsevles with
1. The awful X-type (going downmarket)
2. Average S-type (not trying hard enough)
3. canning the jag small convert concept
4. awful, AWFUL marketing
Their reliability and dealers have improved and their product is 1/2 great 1/2 awful. The XJ and XK are wonderful, with an awful or no marketing push.
They need all new execs.
1. The awful X-type (going downmarket)
2. Average S-type (not trying hard enough)
3. canning the jag small convert concept
4. awful, AWFUL marketing
Their reliability and dealers have improved and their product is 1/2 great 1/2 awful. The XJ and XK are wonderful, with an awful or no marketing push.
They need all new execs.
08-14-07, 11:01 PM
#3
Lexus Champion
I'd have to agree with you on all points, Mike.
I've always been a big fan of the S-type, but I've always felt like it didn't stand out enough. Maybe it was because of the high price tag, but not enough value for the money. Power wasn't there (except in the S-type R) and neither was reliability.
I also think you're spot on about the lack of marketing for this brand. Sadly, I don't think they'll be able to revive their company *unless* they rebuild the company from the ground up + eat a slice of humble pie and stop trying to sell their cars for an arm, a leg, and a kidney.
I've always been a big fan of the S-type, but I've always felt like it didn't stand out enough. Maybe it was because of the high price tag, but not enough value for the money. Power wasn't there (except in the S-type R) and neither was reliability.
I also think you're spot on about the lack of marketing for this brand. Sadly, I don't think they'll be able to revive their company *unless* they rebuild the company from the ground up + eat a slice of humble pie and stop trying to sell their cars for an arm, a leg, and a kidney.
08-15-07, 12:43 AM
#4
Lexus Champion
I'm also sad to see how Jaguar has fallen over the years. They just did not do enough to keep themselves on top.
The XK is still stunning. I still admire them whenever I see one. The S-type was really great when it came out. Classic styling. But they didn't do enough to impress the automotive world with a world class flagship. The XJ did not evolve enough to keep up with the 7 series and S class.
Marketing is pretty tragic. Anyone who has seen their commercials will understand.
The styling of the new sedan is nice, but it doesn't really "look like a Jaguar".
Long sleek and low. That's what makes Jaguars Jaguars. I hope the excecs can turn the company around. If not, it would be a sad day when such a great nameplate goes away.
The XK is still stunning. I still admire them whenever I see one. The S-type was really great when it came out. Classic styling. But they didn't do enough to impress the automotive world with a world class flagship. The XJ did not evolve enough to keep up with the 7 series and S class.
Marketing is pretty tragic. Anyone who has seen their commercials will understand.
The styling of the new sedan is nice, but it doesn't really "look like a Jaguar".
Long sleek and low. That's what makes Jaguars Jaguars. I hope the excecs can turn the company around. If not, it would be a sad day when such a great nameplate goes away.
08-15-07, 04:14 AM
#5
Pole Position
Jaguar has a long way to go. They took the first step by bringing out more exciting designs swaying away from conservative side, but they lack in engineering department big time. Outdated V6 and V8 is not going to cut it with the majority of car buyers.
BTW X-type could have turned the profit and the brand if they did it right but instead they tried to appeal to old conservative Jaguar enthusiasts and fans. Jaguar needs X-type to survive and bring younger and fresher audience so I am looking forward to a new one. They would be stupid if they don't rip off V8 Vantage and just add two more doors and make it sporty cause that would be the best entry lux car in the segment.
BTW X-type could have turned the profit and the brand if they did it right but instead they tried to appeal to old conservative Jaguar enthusiasts and fans. Jaguar needs X-type to survive and bring younger and fresher audience so I am looking forward to a new one. They would be stupid if they don't rip off V8 Vantage and just add two more doors and make it sporty cause that would be the best entry lux car in the segment.
08-15-07, 06:45 AM
#6
As the article mentions, Jaguars biggest downfall has been negligence from Ford...something that they arguably have no control over. I remember when the S-Type debuted and it was a SLAM dunk- quirky yet classic Jaguar styling, the engines were competitive for their time, nice interiors, and decent, if a little expensive prices.
Fast forward ten years later and the car has received new tail lights and updated engines, and barely that. The technology and innovation that is built into Jaguars rivals is simply LEAP YEARS ahead. Engines, nav systems, transmissions, audio systems, interior features, drivetrain technology...Jaguar is dead last and it is due to the fact that Ford lacks the cash or interest in reviving the brand. Ford has let them die on the vine. Period.
The X-Type should have never happened to be honest...a JAGUAR based on a FWD Ford chassis? This is yet another instance of the American prostitution of an icon. This car needs to go away, never to return to be honest. XK is a sure step in the right direction and it's beautiful inside and out, and light on it's feet thanks to Aluminum, but I can't help but recall Jeremy Clarkson's review when he stated, "BUT WHAT IF IT HAD MOOORE ENGINE?!"
Clearly Jaguar is in the hole, there is no denying that, but I do think that they are salvageable. The brand has been absent from many peoples minds in recent years with fierce competition from Audi and Lexus, and the perennial stalwarts Mercedes and BMW, but people have not forgotten what Jaguar is or stands for. They simply haven't made products that are necessarily appealing to many people, again, in the face of the competition. It sounds to me like new engines are on the way...great news, so I'll stop there. Aluminum should become a Jaguar trademark, IMO. Jaguars should be lithe and agile and this is the best way to do it and it should be implemented on all models. It also seems obvious that a new design theme is in the works which should be great. Lastly, the I feel that the focus of Jaguar needs to be on iconic status rather than competing with Mercedes, Lexus, etc in as many fronts as possible. Case in point...the X Type should have never happened, like I said above, and I don't think it should really happen again although I am not completely opposed to it if they can figure out how to do it in a uniquely Jaguar fashion, i.e. not on a Ford chassis. I feel like Jags used to be a step up from Merc and BMW with their signature design cues and rarity. Jaguar needs to be restored to a brand that people aspire to and admire, so whether they do it through styling, pricing, exclusivity, or any other means, I think that "exclusive" needs to be the focus. Rarity and profit don't necessarily go together though, and I do not have the plan for that but hey...Maserati did it!
Fast forward ten years later and the car has received new tail lights and updated engines, and barely that. The technology and innovation that is built into Jaguars rivals is simply LEAP YEARS ahead. Engines, nav systems, transmissions, audio systems, interior features, drivetrain technology...Jaguar is dead last and it is due to the fact that Ford lacks the cash or interest in reviving the brand. Ford has let them die on the vine. Period.
The X-Type should have never happened to be honest...a JAGUAR based on a FWD Ford chassis? This is yet another instance of the American prostitution of an icon. This car needs to go away, never to return to be honest. XK is a sure step in the right direction and it's beautiful inside and out, and light on it's feet thanks to Aluminum, but I can't help but recall Jeremy Clarkson's review when he stated, "BUT WHAT IF IT HAD MOOORE ENGINE?!"
Clearly Jaguar is in the hole, there is no denying that, but I do think that they are salvageable. The brand has been absent from many peoples minds in recent years with fierce competition from Audi and Lexus, and the perennial stalwarts Mercedes and BMW, but people have not forgotten what Jaguar is or stands for. They simply haven't made products that are necessarily appealing to many people, again, in the face of the competition. It sounds to me like new engines are on the way...great news, so I'll stop there. Aluminum should become a Jaguar trademark, IMO. Jaguars should be lithe and agile and this is the best way to do it and it should be implemented on all models. It also seems obvious that a new design theme is in the works which should be great. Lastly, the I feel that the focus of Jaguar needs to be on iconic status rather than competing with Mercedes, Lexus, etc in as many fronts as possible. Case in point...the X Type should have never happened, like I said above, and I don't think it should really happen again although I am not completely opposed to it if they can figure out how to do it in a uniquely Jaguar fashion, i.e. not on a Ford chassis. I feel like Jags used to be a step up from Merc and BMW with their signature design cues and rarity. Jaguar needs to be restored to a brand that people aspire to and admire, so whether they do it through styling, pricing, exclusivity, or any other means, I think that "exclusive" needs to be the focus. Rarity and profit don't necessarily go together though, and I do not have the plan for that but hey...Maserati did it!
08-15-07, 06:48 AM
#7
Super Moderator
Going square at the end of the 80s, that was the breaking point. My family had two XJ6s, 84 and and 86, and we also sufferd the joke of you buy two, one to drive and one to keep in the repair shop.
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08-15-07, 07:16 AM
#8
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What is is pathetic is Ford has owned Jag for sometime now, since the early 1990s and in that time Lexus has come out of nowhere to become a top luxury company and others have gotten better as well:
Acura, Infiniti, Caddy, Saab, Volvo, Audi
Have all take good steps. Jag is stuck and continue to lose hundreds of millions a year.
IMO, I thought Jag was a step up from BMW and Benz, since they didn't offer entry level cars and they had a V-12 XJ sedan.
Their move to go downmarket to get 225k sales a year (which they NEVER came close to hitting) was very very short sighted.
Acura, Infiniti, Caddy, Saab, Volvo, Audi
Have all take good steps. Jag is stuck and continue to lose hundreds of millions a year.
IMO, I thought Jag was a step up from BMW and Benz, since they didn't offer entry level cars and they had a V-12 XJ sedan.
Their move to go downmarket to get 225k sales a year (which they NEVER came close to hitting) was very very short sighted.
08-15-07, 09:46 AM
#9
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I don't get it. I see Jags everywhere. The X-type and S-type are a dime a dozen here in NM. And if that's the case here, there has to be even more of them in cities like LA and NY. However, I rarely see XJ and XK on the streets.
08-15-07, 09:59 AM
#10
I'm quite sad about how Jaguar dropped the way it did.
I find their cars well designed, albeit engineered poorly. Modern Jags such as the XK and C-XF concept are beautiful, and I still favor the S-Type's looks amongst other similar competitors.
Will I ever buy one? No. Looks can only go so far. I need substance, and that is what Jaguar lacks. There is no Jaguar in the line-up that is substantial in quality nor value nor functionality.
I find their cars well designed, albeit engineered poorly. Modern Jags such as the XK and C-XF concept are beautiful, and I still favor the S-Type's looks amongst other similar competitors.
Will I ever buy one? No. Looks can only go so far. I need substance, and that is what Jaguar lacks. There is no Jaguar in the line-up that is substantial in quality nor value nor functionality.
08-15-07, 03:54 PM
#12
Lexus Fanatic
I used to LOVE JAGUAR. They KILLED themsevles with
1. The awful X-type (going downmarket)
2. Average S-type (not trying hard enough)
3. canning the jag small convert concept
4. awful, AWFUL marketing
Their reliability and dealers have improved and their product is 1/2 great 1/2 awful. The XJ and XK are wonderful, with an awful or no marketing push.
They need all new execs.
1. The awful X-type (going downmarket)
2. Average S-type (not trying hard enough)
3. canning the jag small convert concept
4. awful, AWFUL marketing
Their reliability and dealers have improved and their product is 1/2 great 1/2 awful. The XJ and XK are wonderful, with an awful or no marketing push.
They need all new execs.
But it clearly does not have Lexus quality...the one I reviewed (at the time) had a loose door handle that almost fell right off.
08-15-07, 04:38 PM
#14
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When I met my wife, we both had XK-E's. For me Jaguar's "heritage" was dumped on by Jaguar itself when the only successor they could come up with for the E type was the XJS. Jaguar's slide isn't something that just started in the last ten years.