There's a post-colonial irony to the fate of the British auto industry. Its two most elite names, Rolls-Royce and Bentley, now belong to the Germans, while those two other symbols of the empire, Jaguar and Land Rover, are now owned and operated out of the one-time heart of Britain's overseas holdings.
Last year, India's upstart Tata Motors purchased the last two brands from Ford Motor Co. The fire sale generated some much-needed cash for the struggling U.S. maker -- but it also offered Tata the opportunity to move into the mainstream of global auto manufacturers.
For Jaguar in particular, the transition has an ironic tinge to it. From the very beginning, critics questioned Ford's 1989 acquisition of the long-troubled British luxury brand, and after nearly two decades of trying to right the marque, Ford executives reluctantly came to agree. But the sale was completed just as Jaguar launched the replacement for the unloved S-Type sedan. The eagerly awaited XF is the brand's most well-reviewed offering in decades, racking up a stream of kudos -- including being named Car of the Year in Russia and the UK.
There was a time when a product like the XF alone might have reversed Jaguar's long decline, but today's luxury market has shifted with competitors like Mercedes-Benz, BMW and Lexus rapidly expanding their product lineups. It's no longer possible for a single model to prop up an entire brand.
Jaguar hopes to broaden its own appeal with variants of its existing models, largely based on new powertrain packages. But far more critical is the upcoming relaunch of the brand's flagship, the big XJ sedan. In a move harshly criticized by industry analysts, the current XJ was the product of a massive remake, but the high-tech aluminum spaceframe was clad with in a body that looked virtually identical to the model it replaced - and its sales stalled in part because of it.
That mistake won't be repeated, asserted Jaguar's new managing director, Mike O'Driscoll. While the British executive won't go into detail, numerous spy shots of the 2010 sedan have been surfacing, and the look is anything but retro, having more in common with the XF and Jaguar's other key offering, the sporty XK coupe.
Beyond the XJ, Jaguar seems certain to keep growing the lineup. "We'd like to build a sports car one day," hinted O'Driscoll. But for analyst Jim Hall, of 2953 Analytics, in Birmingham, Michigan, there's an even bigger "hole in the lineup. That's where the X-Type was," Hall adds, referring to the oft-derided compact sedan and wagon that failed to pose much of a threat to the likes of the Mercedes C-Class and BMW 3 Series.
Hall, like other observers, believes a replacement will eventually be approved by Tata, but he stresses, "They have to execute it as a Jag, which the X-Type never was. It's the largest luxury segment in the world, and if they get it wrong, it will only be a cash loss."
...
>>next page