Jaguar Bets On Lower Prices, EliteCare For Sales Reboot

Jaguar will cut prices and boost its standard warranty and service package as it rolls out a new generation of vehicles.

Joe Eberhardt, CEO of Jaguar Land Rover North America, says the upcoming launches of the new 2016 Jaguar XF and 2017 Jaguar XE sedans, and the world debut of the 2017 Jaguar F-Pace crossover SUV this month at the Frankfurt Auto Show, give the company the "dramatic opportunity to recast the Jaguar brand."

The issue: while Jaguar Land Rover expects to sell more than a half million vehicles worldwide this year, the Jaguar brand accounts for less than a fifth of that volume. In 2014, the company sold 81,570 Jaguar cars, a figure that was up by six percent, but still far behind the strong-selling Land Rover lineup.

"That is about to change in a fairly substantial way," Eberhardt says.

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As it rolls out its new vehicle lineup, Jaguar will adjust prices and reposition its vehicles within their respective segments, he adds. It will also launch a new warranty and service initiative called Jaguar EliteCare, and will make it standard on every new Jaguar vehicle.

A parallel plan isn't under consideration for the Land Rover brand, Eberhardt says.

Prices go lower

The fundamental change in strategy starts with the pricing of the entire Jaguar lineup in the U.S., Eberhardt says, which will address the number-one issue buyers turn away from its cars. Jaguar vehicles, he says, have tended to carry a price at the top end of their segments.

When it launches the XF, Jaguar will also slim down its trim level selection. Going forward, its vehicles will be sold in three trim levels: Premium, Prestige, and R-Sport. It's an Audi-like structure that Jaguar hopes will allow it to build about 90 percent of its vehicles within pre-defined packages, which in turn makes it easier and less costly to manufacture them.

That process will create new base models with more standard features. Those base models may not sell in big volumes, Eberhardt says, "but will help us change perception of those vehicles."

Finally, Jaguar will add EliteCare, which it says extends the standard warranty and maintenance plans to the longest terms in the class. Each Jaguar will come with a five-year, 60,000-mile warranty with free maintenance. Roadside assistance will be covered for the same term, as will some features of its new InControl service, including remote access and emergency services. The EliteCare plan will also be transferrable through its term.