JLR to axe production of five Jaguar models

UK (Commonwealth) _ According to international automotive news sources, JLR CEO Adrian Mardell informed investors that the business would discontinue five models that are “nearly zero profitable” this year.

Speaking at an investor’s day last month, Mardell said that as JLR changes course to become a premium all-electric brand, the XE, XF, F-Type, E-Pace, and I-Pace are all slated for retirement.

The first of three entirely new EVs will be revealed next year, with the F-Pace being the only model from the present lineup to stay in production, according to the story. The new cars will be built on a brand-new platform that JLR has been developing called Jaguar Electrified Architecture (JEA).

According to JLR’s CEO, dropping the five models will raise the average selling price of the company’s merchandise. Five lower-value goods are being discontinued. According to ANE, Mardell stated at an investor day on June 19 that “we are replacing them with new vehicles on newly designed architectures” since none of those are vehicles on which we earned any money.

The announcement comes after JLR announced record-breaking sales figures. The business reported that its revenues for the year ended in March 2024 were £29 billion, more than 25% more than the year before.

But the company’s enormous sales of Range Rover, Range Rover Sport, and Land Rover Defender cars were primarily responsible for the figures. According to Mardell, the three models account for 85% of JLR’s “value.” Whether value referred to income or profit was not made clear by him.

Unsurprisingly, the F-Pace accounted for a third of Jaguar’s total sales in the three months leading up to the end of June this year, selling more than any other Jaguar model with 5,292 sold.

Though we revealed last month that Canadian Jaguar dealers were preparing for a legal battle with the manufacturer over its intentions to move to a lower volume, electric future, the decision to shift to an electric-only brand hasn’t been well received everywhere.

When a new electric automobile is introduced next year, sales of cars are expected to fall from around 8,000 to about 700, infuriating Canadian dealers. Additionally, it was reported that Jaguar planned to reduce the number of its UK showrooms from about 80 to 25% of that amount since it didn’t require as many to support its new electric brand.

At the investor’s day, Mardell stated, “Our business model is not going to be succession of increasing variable marketing and fixed marketing expenses to try and keep our plants full.” That model was mass-market premium. We have a great chance to succeed since our model is so, so distinct.

Mardell anticipates that its new “halo strategy” push will increase profitability through the sale of special, limited edition versions of its cars. Prior to the company’s rebirth as an all-EV premium brand, Jaguar will discontinue all of its cars with the exception of the F-Pace.

This implies that the Magna Steyr-assembled E-Pace and electrified I-Pace, as well as the F-Type, XE, and XF manufactured at Castle Bromwich, which were discontinued in June, would also be discontinued. Regarding the choice, JLR CEO Adrian Mardell remarked, “They’re all close to zero-profitability products.” An official termination date has not yet been confirmed by the brand.

Just 4874 I-Paces and 21,943 F-Pace models were sold by JLR last year, compared to 7897 E-Paces. With 7000 sales, the F-Pace surpassed the total sales of the other six cars in the lineup and more than doubled the sales of the I-Pace, which came in second. The first half of 2024 has seen an increase in that disparity.

Another important consideration in the choice was that the Range Rover, Range Rover Sport, and Defender now account for the majority of JLR sales. These three lucrative SUVs accounted for 59% of JLR’s 111,180 half-year global sales between them.

Five lower-value goods are being eliminated. According to reporting from Automotive News Europe, Mardell said to investors, “We are replacing them with new vehicles on newly designed architectures because none of those are vehicles on which we made any money.”

Next year, Jaguar will usher in a new era with the release of a 600 horsepower electrified four-seat GT vehicle inspired by the Porsche Taycan. This model is anticipated to be replaced in 2026 by a big premium saloon and a luxury SUV a la Bentley Bentayga. All of them are completely unconnected to the company’s current products and will share its new, exclusive JEA platform.