Why Jaguar And Land Rover Face Uncertain Futures

Why Jaguar And Land Rover Face Uncertain Futures


Jaguar Land Rover are two iconic
brands in the automotive world. Rich with heritage an excellent style
and performance but each have also suffered Rocky histories. And for years each were passed between
new owners in Europe and the U.S. including BMW and Ford. With BMW owning Land Rover and
Ford owning Jaguar in the 80s. Then just when they were on the
verge of bankruptcy the two thoroughly British sister brands were bought
by the Indian, Tata Motors. Part of the vast Tata Group
empire that makes up everything from software to food products. When Tata acquired them in 2008, both
Jaguar Land Rover had their fair share of financial struggles and
had fought to overcome reputations for unreliability. If you were going to say drive
across the country in a given vehicle and hope that everything went well. Pre-Tata, Jaguar Land Rover would have been
one of the last brands I would have picked to do that in. I just didn’t have
faith in their vehicles. Worse, Tata had bought these brands
and perhaps one the worst possible times in recent history. Right on the cusp
of the financial crisis. However in the years that followed,
Tata Motors did something many owners had failed to do
before turning them into moneymakers. But things are getting gloomy
for jail are once again. Just as these two legends have
finally found some footing a drastically shrinking market in China for
JLR and trouble in Europe are threatening them once again. The S&P lowered the credit ratings of
both JLR and Tata Motors in early 2019 and they are
now deep in junk status. The question now? Will Tata Motors be able to turn around
JLR once more or is looking to cut its losses? Jaguar was founded in 1922 as the
Swallows Side Car company by William Lyons, a motorcycle
enthusiast and engineer. Back then the company initially made
side cars, those little pods that sit on the side of motorcycles. But in 1935, Lyons built the S.S. Jaguar. It was the first car
to bear the Jaguar name. Over the years the company has
made sleek aerodynamic sports cars and became known for racing. Number 20 is the winning Jaguar
which eventually finish nine laps ahead of the next car. Having traveled at an
average speed of 93.5 miles an hour. Perhaps the most famous example was
the E-type which Jaguar started making in the 1960s. Land Rover had an entirely
different history making off-road vehicles used by the military and bucolic
customers in Europe and around the world starting in 1947. Over the years Land Rover developed
a reputation for making rugged trucks an SUV with
a distinct British touch. Models such as the defender,
developed reputations for ruggedness and capability rivaled perhaps only by few
vehicles such as the Jeep Wrangler. Though also extremely capable, the
brand’s Range Rover was perhaps what anticipated the trend in
high end luxury sports utility vehicles. And has even been the target
of scorn for its popularity with well-heeled buyers who never drive
the thing off pavement. The two companies were rejoined under
one roof beginning with Ford buying Jaguar in the late 1980s. But in terms of fully exploiting the
brand name of strength that we were building up in the company there’s
no question we should be able to do a better job with the
resources that Ford Motor Company will make available. And then in 2000,
Ford bought Land Rover. Ford under went its own
troubles in the following years. It had to sell off many of
the premium names they had acquired including Jaguar and Land Rover. And another high-end British
automaker Aston Martin. Just eight years after Ford bought Land
Rover, Ford sold it and Jaguar to Tata Motors for about 2.7 billion dollars. Tata Motors did exactly what many fans
and enthusiasts say is the best thing an owner can do for
car companies as legendary as these. And it paid off. Jaguar Land Rover didn’t really start
to become a powerful and competitive group of brands in the
modern automotive world until Tata took over. And when Tata inherited both brands
and invested the kind of money that they had long needed invested. That’s when you saw everything from
the design to the engineering to most importantly the quality, reach a
level that made them comparable to things like a BMW or
an Audi or a Mercedes. Up until 2017, it looked like
Tata Motors had engineered a lasting turnaround for the
legendary brands. But things took a turn
for the worse in 2018. JLR posting a loss of about 4.3 billion dollars in
fiscal year 2019. Its biggest loss in
the last 10 years. That loss resulted in a large part
from a nearly 4 billion dollar one time write down. However even taking that into account
the company still would have lost money. The company said in January of 2019
that it’s cutting 4,500 jobs about 10 percent of its workforce. Jaguar Land Rovers troubles have
hurt parent company Tata motors. JLR’s recent troubles have been one
of the factors contributing to recent declines. In April 2019, reports surfaced that
Tata Motors is considering a sale of the brands to
French car manufacturer PSA. Reports that Tata Motors denies. Out of the two brands
Land Rovers and the strongest. But it has struggled as well. A big part of the problem, Jaguar
Land Rover sales in China fell about 26 percent in May and
46 percent in April. In March 2019, the company said sales
in China had fallen 34 percent for the fiscal 2018 to 2019 year. It is also facing
headwinds in Europe. Brexit threatens to raise costs. More than 40 percent materials used
travels from the European Union to the United Kingdom. And it must contend with
increasingly stringent emissions laws in Europe following the so-called diesel
gate scandal that rocked Volkswagen and other companies
in the automotive world. In a comment to CNBC, Jaguar
CEO Ralph space said that: But the U.S. may hold the keys
for JLR’s recovery. Land Rover’s strongest markets in North
America where it’s in the fortunate position of being a premium
sports utility maker in a time where U.S. customers are hungry for SUVs. JLR sold about 10 times as many
SUV as the United States as did traditional passenger cars in 2018. Despite the fact that jaguars portfolio
is still heavy on sedans and sports cars. But Jaguar is leaning
into utility vehicles too. It sold almost twice as many SUVs
in 2018 as its famous sports cars and sedans. And unlike brands such as Porsche,
it’s brushing aside the usual criticism that moving towards utility
vehicles is straying away from its race car roots. The Jaguar Land Rover
CEO also said: Jaguar is also stepping forcefully into
electric cars with its I-Pace crossover which has been
praised by critics. The car swept the world car awards
at the New York International Auto Show in 2019. But North America’s continued appetite for
its vehicles might not be enough to engineer a full
recovery for the two brands. Industry analysts worry about a larger
downturn in new car sales is looming. The easier path is just sell
Land Rovers people know them by Land Rovers. But they are taking a longer path
by of keeping both Jaguar Land Rover together because there are a couple
of restrictions which are coming in terms of fleet norms and all
those things which they need to meet and hence they can work out. In the meantime Tata Motors has
fended off reports that it’s considering selling the division
to PSA group,. The very same French automaker that
bought Opel and Vauxhall car brands from General Motors
and turn them around. Jaguar Land Rover have history
and heritage on their side. But the global automotive industry
is changing rapidly and it’s unknown how much of that history
and heritage will count in a business increasingly obsessed
with the future.

Comments

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    Here I am

    I own a Range Rover and I have to say that the reliability has sucked big ones. I can believe Land rover would use cheap plastic parts for the cooling system. WTF are these cheap engineers thinking. Very disappointed. I should have listened and leased it. I will never buy another one.

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    Charming Ferret

    Big brands with lots of history ? They're history. The new generation of car buyers are turned on by internet access while being driven to an cafe with internet access. The brand is immaterial.

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    David Mason

    The only way to drive one of these cars is on a lease. Once it gets miles on it and the service warranty is gone then it's a money pit.

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    Bentley Elite

    The market is crazy right now , u have 3 quarter million $$ suv's on the market lambo ,rolls royce & bentley & more are coming ,land rover looks boring to compared those or do some good research of what's going on in the market

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    Sean McDonald

    In England, 'tata' means something VERY different . . . . . . . My wife has the best . . . . . my favourite unwraps. 😄😄😄 Also has a rugged chassis and great in the mud too . . . .

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    Ricardo Martins

    Why? Land Rover sales on China are down. Why are they down? Chinese bought Volvo, better cars and with electric future. You're welcome.

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    Nunya Bidness

    IMO, they have too many models. Drop Jag down to maybe two models, and Rovers to maybe four? Crank out Defenders as fast as you can. Will Brits (or even Americans) by a French made Jag or Rover? (Also, save us all the responses about the difference between Rover and Land Rover. The percentage of actual buyers who care is three).

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    Undercover Louky

    The Land Rover doesn't fit my personal taste. BUT, the Jaguar is possibly the most beautiful collection of cars ever built. Having said that, right or wrong, I'd be terrified to have to rely on one for primary transportation. While it's possible that Jaguar's reliability has improved, its reputation has not caught up. I'm reminded of the old joke: Why don't the British make televisions? They can't figure out how to make them leak oil.

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    Khan Ali

    Too much electronic that’s the problem! Car broke down in the forest, can you imagine and you can’t just repair it the conventional way on the spot! Buy a simple engine or engine that are reliable like the Toyota Land Cruiser. Inside can be luxury but cut down the electronic to it minimum!

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    Ruuaz

    Companies learn that not enough People have money to buy vehicles of dubious quality for high quality price Rovers do not last long they did back in the day but modern rovers are garbage around 91 94 to current and Jag is just it wants to be cool again sooo bad that it doesn’t see there isn’t a market for it buy the Aston (horrible) or Mercedes (horrible price if your American unless you buy a G wagon or certain cars your German car is made in Bama or BMW if you like the SUV it’s made in SC German built it is not.

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    Pavan C. Joshi

    Problem … No problem !

    Richie-Rich end user cohort will get them a bailout quoting heritage, pedigree and nonsuch; bailout package mist include co-production with Tata Motors in cheap and qualitative parent plants all over India.

    Choice is simple – Die a prestigious death or focus on …hehe … mass market 'luxury', a junk bond type market invented by BMW, Audi and Mercedes with their mass badged aspirational OECD mid market products.

    Revolutionary e times are here so it's a good time to flog jaded, or so called marquee brands, via e-platforms before Tesla and others chew up their user base altogether.

    I say go for co-production.

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    Electric avenue Bikes

    Used ones are dirt cheap ,if u buy to park it in your driveway coz once u start driving them u will need another job to support it.,LOL this is funny i'am 46 now and when i was a teen cars like Jaguar ,land rover , volvo and mercedes where BIG names and ment being powerful in life with a good head on your shoulders how they said back then , How u are a nut to buy one .

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    Gev Bugh

    If I bought these two brands, I would :
    -Make deal with Lexus so that they can use Lexus components to make them more reliable.
    -Use better quality leather for the seats and find better way to make the stitchings more neat.
    -Fire the head designer and work with Pininfarina or Zagato instead.

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    glitch gamer

    Kudi kendi menu.pehle jaguar lelo ,fir jindi marji pyar lelo
    Girls say first buy me a jaguar,then take as much love u want.

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    Alex Daniel

    Anyone not making electric vehicles within the next 4 years will be dust in the history books. Emissions laws across the world are tightening, especially in China who are not only Trying to reduce their footprint, they’re trying to build they’re own electric car industry.

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    André

    By the way, these engines are not FORD, but, engines that FORD bought PEUGEOT/CITROEN/OPEL(PSA). Who is at risk of closing is FORD UK! Ps. Including ford vehicles have PSA engines, like the F-150! But who doesn't like the PSA engines in the ford, will be able to like the VOLKWAGEN engines that Ford will start using!

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    zwr9ne0fh8pk4bt635245

    Even if they disappear, drivers won't care, since most of them are leases.
    They'll just lease something else, they shouldn't afford.
    Same thing happened to GMC Hummers and Saab.

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    Robert Frost

    The new Defender is going to rock and they are not going to be able to keep up with demand. That vehicle will be a game changer and they have spent a lot of money developing it.

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    André

    If they go through uncertain futures, why did they make the mega factory in Slovenia (only the largest automobile factory on the planet) and work 7/7, 24/24!

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    chandransh Pandey

    why tata will sell jaguar and for what reason, they have TCS in their company its tata cash cow earning around 4 billion dollar profit every year. they are much bigger than PSA group and their business is too big too handle such small pressure which came at the time of slowdown, us china tradewar and britain eu exit.
    sorry but your research is not good jaguar and land rover brand is still very strong and they have performed very well in the past and they will further perfrom very well.
    dont forget both jaguar and land rover are premium brand and slowdown always affects the top section spending what we are facing today. Ford is not that big company if you compare it to tata and tata future goal was always a automotive giant and by just selling jaguar and land rover they will be left with nothing.
    TATA is bringing technology of luxury cars to their mass public cars like tata harrier built on omega platform which itself copied from land rover again tata tiago, tata nexon got 5 star rating in safety just because of these luxury cars and now its the biggest selling point for tata cars. tata is different type of company than ford or psa or any other.

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    Vermithrax Pejorative

    As one other commentator mentioned, the narrator doesn't go into the detail of WHY sales are down on China, a country with 1.7 billion people. Why are sales down in China?

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    Philip Nothnagel

    They look like glorified Hyundais, designed by mustard coloured pointy suade shoe wearing metrosexual 'designers'. Not interested.

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    Meysam Mosaheb

    funny how some people try to justify the low sales while the reality remains that these cars are simply a good looking piece of junk. this coming from a mechanic.

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    Albert Wang

    Firstly, no company, especially a car company should be cannibalizing their own sales. Im surprised Land Rover isn't making a V8 coupe. I get that SUVs are hot as hell right now but keep it within Land Rover. A loss of brand identity is the root cause of the failure of any brand. Of corse their craftsmanship is also crap, but at least people can take pride in their crap when that company has a strong identity, Like Aston Martin.

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    JEREMY ROSALES

    Why buy this car brand if your not rich and theyre badly made. Ofcourse they look beautiful but reliability is so poor. Just buy japanese car is far away better

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    we rw

    There's a saying in middle east "if you want to go to the desert go in a land rover if you want to come back from the desert go in a land cruiser"

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    L R

    I was going to buy a Land Rover Range Rover the one that looked a little like a Jeep Wrangler soft top etc. In the 1990's seemed like a great deal great price good looks and then I saw they had transmission issues, and a Transmission then was $8000.00 US. I lived near Ponca City Oklahoma growing up and in the 1970's, and it was the world headquarters of Conoco Oil, and 30 miles east was Bartlesville OK and it was the world headquarters of Phillips 66. The area at that time was one big Disco as the tiny area was made of Gold, a weird Okie forerunner of Dubai, and Ponca City was the Herpes capital of the world as seen on TV worldwide at the time. One club Disco we would drive by farming called Cassiopeia's was called ground zero of the Herpes epidemic by 20/20 back in the era. Granddad made me swear to him when I got older I would never go in the establishment. There was Jaguar XKE's with all the options sitting in towns all around dusty but in great condition as they were parked after the electrical systems failed, and it's only been in the last five or 10 years or so that most have disappeared. But if you are looking for a mostly rust free one it would be worth a look around that area.

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    Cornelius Thompson

    Jaguar Land Rover has too many reliability problem and they don't even bother to improve it. This company DNA is hopeless.

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    dixcreative

    What all car makers get wrong. Is making cars all look the same. They always point to history and heritage and that is when they had bold designs

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    Smoky Robinson

    I have thoroughly enjoyed my 2017 Jaguar, bought new, and would gladly serve as a billboard ad for the company. Not a speck of trouble.

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    John Hooker

    I see that we have the usual comments that JLR products are “overpriced” and “unreliable.
    Overpriced in relation to what? A Dacia? A Ford Focus? A Corolla? Compare an aluminium, bonded and riveted Jaguar XE, with a, comparatively archaic, pressed steel BMW 3 Series and BMW want every bit as much, or more.
    The usual and predictable comments about reliability are often from those who’ve never owned one, or attempted to run a 15 year old one on a shoestring.
    Just over 2 years and 70,000 miles into Range Rover ownership and the reliability has been as good as the best cars I’ve ever owned before.

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    The LION King

    Whay both face uncertain future… a simple understanding that Tata sucks in selling their own vehicle but Landrover and jaguar. These are the brands like Ferrari and Lamborghini, which should run by their own heads and the investors as just to pump the money, the company will run by passionate people. That’s how they can bring the product back from dead!

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    Ramchandra Mahamuni

    Tata can make only indian people fool…only indian….why vw group dont face such problems….answer is there….value for money

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    Ted Neanderthal

    This may sound off but I think that Honda should buy Jaguar. Honda's luxury division – Acura – is struggling. It does not have cache. Jaguar does. In spades. So does Land Rover.

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    Vipin Kumar

    The TATA story all started way back in the 90s when the Chairman of TATA group Mr. Ratan Tata visit JLR in UK for a partnnership in the company and collaboration for operations in India. JLR owners refused and made fun of him. Tata bought JLR in 2008. Cheers!

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    K onliner

    It's simple. Land Rover is an off-road brand and off road cars should be reliable, which Landie is not. Jagauar's interior quality is very disappointing. It almost feels like a Hyundai.

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    David Coli

    JLR could make more money quite easily! Make more reliable cars! Option up your cars according to the line you choose eg SE/HSE and etc. Land Rover Discovery Options lists are absolutely insane and must be costing JLR a fortune to deliver. The Land Rover Discovery and Discover Sports are absolute amazing machines!!  
    They are over priced for top end mass market cars, feels like they are trying to be niche and luxury high end. The reliability of those cars mean JLR is bleeding valuable customers to Kia, Volvo, BMW, Audi and Volkswagen.
    Cut your part prices, they are completely insane and make late km ownership too risky and intern kills resale value.
    Solve that I would gladly buy a Discovery….Beats the heck out the European car equivalents

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    Mango Steel

    Idk? Jaguars are popping up all over the place in Atlanta. Hell, my pastor have 2 of them.
    Moral of the story is….

    Stop going to church.

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    P Brar

    I see Range Rovers all over in the city. Can tell Jag is doing bad. Hope tata pulls the plug on Jag and keep running Land Rover.

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    Martin Popov

    Ok I wanted to make a comment about Jaguar reliability. I own a 1996 Jaguar XJ 6 ( X 300) model for 12 years now and the car has been my daily driver since I bought it used. My only car. The car never let me down during all these years of ownership. I drive about 500 milies a week. The engine, transmission, and differential are solid. My car clocked 278,000 original miles on it's drive train last month and keeps going. I barely go to my mechanic unless I do not have the tools to make a major repair. Regular maintenance is done by me. My goal is to reach 500,000 original miles before I put the car to rest and restore it. I know the car will go that far. Most of you are commenting on reliability, well my car is a example of a great product that is still running on the road after 25 years. What else you can ask from a car manufacturer. Happy motoring my fellow Jaguar enthusiasts and remember do not believe gossip, drive these machines and enjoy every moment of owning them.

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