Jaguar Travesty

Honest John Back Room » Motoring discussion
What is life like with your car? Let us know and win £500 in John Lewis vouchers | No thanks
View Threaded
Wed 15 Sep 2004 23:20
Jaguar Travesty - Imagos
So Ford is going to shut Browns lane??

Is nothing sacred?
Reply | Report as offensive | Link
Wed 15 Sep 2004 23:32
Jaguar Travisty - pd
When you're losing $250m a quarter: No!

The new XJ is proving a sales disaster. It's a very good car but unfortunately looks just like the old one. This has the effect of not putting off the current owners but unfortunately for Jaguar there were not many previous XJ owners anyway in today's terms and a significant number of them have given up driving.

It just doesn't make sense for a company producing under 200,000 units a year to have 3 assembly plants.

Sad (and very sad for the people who work there) but that's the way it goes,
Reply | Report as offensive | Link
Wed 15 Sep 2004 23:53
Jaguar Travisty - bartycrouch
It is a wakeup message that relying on history is a dangerous game. The fundamental problem is that all of Jaguar's greatest achievements were at the cutting edge of design and their latest designs are not.

XK120
E-type
Mark II
XJ saloon were all huge jumps over their own previous models and anything anyone else could come up with.

The current cars look like the Jaguars of twenty years ago. This is not true of the opposition. They even made the mistake of trying to shrink the shape to the x-type, which is just too small to take it. The x-type was 4wd not through need but to differentiate it from the Mondeo. Previous Jaguars were not compromised like this.

The next problem is how do Jaguar move forward. It has traded on its past so much that you have to ask would people take a radical design seriously, or would they assume Jaguar had panicked?


Reply | Report as offensive | Link
Thu 16 Sep 2004 01:02
Jaguar Travisty - Sofa Spud
I agreee about the X-type. It actually manages to look less sleek and graceful than the Ford Mondeo it's partly based on!
Perhaps retro styling has had its day. The new Mini isn't likely to have a production half as long as the original Mini. The Morgan Aero 8 is an unhappy marriage of traditional and modern.
The 'new' Beetle only looks good as a convertible-about-town, ideal for cruising the pine tree boulevards of Bournemouth!

Cheers, Sofa Spud
Reply | Report as offensive | Link
Thu 16 Sep 2004 09:35
Jaguar Travisty - Baskerville
The x-type was 4wd
not through need but to differentiate it from the Mondeo. Previous
Jaguars were not compromised like this.


I have it on good authority (an engineer at Jaguar) that it wasn't even as dignified as differentiating it. Jaguar needed a rwd car to compete with BMW, but all they had to work with was the Mondeo fwd running gear. Apparently it was cheaper in the original build to add a transfer box to the existing setup than it was to remove drive from the front. Actually the X-type looks a lot more reminiscent of the American Mondeo equivalent--Taurus?--than it does the Mondeo.
Reply | Report as offensive | Link
Thu 16 Sep 2004 09:57
Jaguar Travisty - Number_Cruncher
I have it on good authority (an engineer at Jaguar) that
it wasn't even as dignified as differentiating it. Jaguar needed a
rwd car to compete with BMW, but all they had to
work with was the Mondeo fwd running gear. Apparently it was
cheaper in the original build to add a transfer box to
the existing setup than it was to remove drive from the
front.


Yes, I had heard the same, from a good source.

I agree with previous posts that Jaguar needs to do other than keep trading on its past.

If you were a big cheese at Jaguar would you spend your engineering budget on;

1) Developing a car to compete with an existing competitor's
2) Developing a car to create its own niche
3) Developing your existing offerings to increase performance & reliability and reduce cost
4) Something else?

number_cruncher
Reply | Report as offensive | Link
Thu 16 Sep 2004 09:54
Jaguar Travisty - patently
So Ford are going to shut Browns lane??


Would you like to provide the necessary financial support to keep an uneconomic factory open? No, neither would I. And neither does Ford.
Reply | Report as offensive | Link
Thu 16 Sep 2004 14:04
Jaguar Travisty - BB
The major problems with Jag and Browns Lane are:

1: New XJ looks like the old
2: The US$ is very weak, this has hit hard. For many months Jaguar were reporting record sales month after month.
3: The X Type should never have been built
4: Browns Lane has no body in white facility or paint plant.

I work at Browns lane, we have expected this for years.
Reply | Report as offensive | Link
Thu 16 Sep 2004 15:19
Jaguar Travisty - daveyK_UK
Jaguar new well about THE issues with the x-type.
From day 1 - infact before haLewood was jaguar BADGED, when the x-type was shown to the workforce behind closed doors, every ford worker raised the point that the failure to have a diesel lined up would harm it.

The american marketing woman said it was not neccessary as the USA would more than enough cover any demand lost from no diesel option in the UK.

how we learn - the model struggled from last year until the diesel came out, worketrs where put on part time deals, some laid of.

Infact, halewood is going through big cost cuts at the moment, back on a 2 shift patern - 1 shift pattern might come in until the freelander plant begins to be set up.

In other news, peoples who is the local ford dealership around liverpool and down the road form halewood are having difficult sales (as no ford workers take their vouchers their as offer minimum discount) -
they are doing from the 22nd of this month for 4 days, fiestas brand new for £5995, £1.6 ghia focus at £9,500 and focus c-max 1.6 diesel zetec for £10,495.
not bad for what is often regarded a none-discount dealership.
apparently if you offered them £5,000 cash for a ford KA they will be willing to let a base model go.
Reply | Report as offensive | Link
Thu 16 Sep 2004 16:56
Jaguar Travesty - bradgate
A quick look around the car park of any large company will confirm the reasons for Jaguar's problems, at least in Europe.

It will be full of 320d's, C220 CDI's, A4 TDI's etc etc.
The Directors will drive an X5, a 530d or an E320 CDI.

Jaguar were far too slow to recognise the switch to Diesel in the executive market and are now paying the price. Equally, they have been too slow in recognising that SUVs are now a crucial part of the aspirational car market and are here to stay.

Jaguar's image is still too 'old', their F1 program is a cynical and unsuccessful branding exercise and the X-Type has been fatally undermined because everyone knows it is 'only' a Mondeo under the skin. We all know the Mondeo is a fine car, but to the ordinary punter in this market, image and status are all.
Reply | Report as offensive | Link
Thu 16 Sep 2004 17:04
Jaguar Travesty - peterb
The popularity of diesel was easy to predict. It's cheap to buy on the continent and was obviously going to be the best choice under the (well flagged-up) emissions-based company car tax system.

The other thing missing from the line up is a 4 cyl petrol to compete with the 318/C180/A4. Those high emission V6s are bad news for UK company car drivers...
Reply | Report as offensive | Link
Thu 16 Sep 2004 18:00
Jaguar Travesty - BrianW
Another probable example of unjoined up government policy.
Dept. A says "It's a good idea to cut emmissions: lets's change the tax system for vehicles".
Dept. B isn't informed, so doesn't tell dept. A that most of UK manufacturers' models will be disadvantaged.
Change goes ahead and UK manufacturers lose sales and go bust.

The same happened 30 years ago when stricter rules for motorcycle learners were brought in.
Very few UK bike manufacturers produced a sub-125cc model, and those were mainly pretty awful, but the Japs did.
So learners bought Jap buzz bombs, took their test and upgraded to a bigger Jap bike.
The UK motorcycle industry shut down almost overnight.
Reply | Report as offensive | Link
Thu 16 Sep 2004 18:21
Jaguar Travesty - Mark (RLBS)
>>30 years ago when stricter rules for motorcycle learners were brought in.

I remember when those rules came in. Wasn't the industry a pretty dead duck already by then ?

When the 125 law came in, the japanese had already one the battle on the 250cc platform.

Before that, they'd already pretty well won it with the Commando competing against electric start GT750s and 500 H1s and the original Z900.

The last even vaguely viable small british bike on any scale was probably the bantams. Lets not talk about the NVT efforts.

The demise of the British bike industry was down to electric starters that worked, oil that didn't leak, indicators that worked from one week to the next and much greater performance - Although, even though I had both a Mach 1 and the original Z900, I still had a Matchless G12 and a Dominator.

Having said that, I'd have swapped the lot of them for a Jota.

Reply | Report as offensive | Link
Thu 16 Sep 2004 18:26
Jaguar Travesty - Baskerville
>Change goes ahead and UK manufacturers lose sales and go bust.

Oh, it's so unfair isn't it? How did all those foreign companies manage to spot the change coming I wonder? Maybe it's because they saw that change was inevitable and that churning out the same old stuff for decades isn't actually an option in a competitive market place. The move to diesel hasn't happened suddenly. The proportion of diesel cars on the continent of Europe has been rising steadily for a couple of decades. Meanwhile Jaguar's competitors have been getting on witht he job of adapting to the market and trying to make better diesel engines. It seems the Jaguar people were swanning around in a warm haze of V12 nostalgia and wondering how they could recreate a hint of it for the little people.

So unfair? Yes it is. Get over it.
Reply | Report as offensive | Link
Fri 17 Sep 2004 21:22
Jaguar Travesty - bartycrouch
The other thing missing from the line up is a 4
cyl petrol to compete with the 318/C180/A4. Those high emission
V6s are bad news for UK company car drivers...


It's more than that I'm afraid. Any "small car" platform should (eventually) have been available or at least viable in 4-door, coupe, estate, and convertable form.

This allows people to trade up within the same model and adds a "halo effect" to the base model. High perfomance sports models should immediately be recognisable to the punter on the street.






Reply | Report as offensive | Link
Thu 16 Sep 2004 17:35
Jaguar Travesty - patently
There is another factor at work, here, as well as the long absence of diesels.

A short while ago I visited a Jaguar dealership. I was in a business suit, having just seen a client. I parked a 2.5 year old 530i in front of the plate glass windows in clear view of anyone who wanted to watch, walked in, and started looking at S and X types.

After having a good, detailed, look over the two models, I eventually had to collar someone to ask some questions and to get hold of a brochure. Were there any brochures or price lists on display? No. Did he offer one? No. Test drive? Fat chance - I didn't even bother asking! Was he the slightest bit interested in me? No. Was he co-operative? No. Did he have anything else pressing on his time, to explain all this? No.

I was treated, in short, like a piece of dog dirt that had somehow made its way onto their sales floor. Unsuprisingly, I do not now drive a Jaguar - yet the historical emphasis of Jaguar cars on handling and performance would suggest that I should be interested.

I suspect that the salesman saw me (34) and decided that there was little or no chance of a sale in the next 20 years or so.

And the boot is tiny, and the rear legroom laughable. Want to fit children in? Ha.
Reply | Report as offensive | Link
Thu 16 Sep 2004 19:23
Jaguar Travesty - madf
Lets face it. When has a new Jaguar saloon design said "buy me NOW"!
The XJ series is for fat businessmen.
The S type looks a heavyweight in skirts - therear is a styling disaster
The X type front is OK: but as others have said.. no diesel!

Personally I would give the range 5 seconds if looking for a brand new car and then go elsewhere. Says it all

madf


Reply | Report as offensive | Link
Thu 16 Sep 2004 19:40
Jaguar Travesty - frostbite
They should bring back the Mk10*

That had a real presence.

*with better rust-proofing.
Reply | Report as offensive | Link
Thu 16 Sep 2004 20:05
Jaguar Travesty - Imagos
Browns Lane is Jaguar's hub and heart, it's spiritual home. Take away it's heart and the 'brand' will slowly die, and that would be a national tragedy. It's the equivalent of Ferrari closing Marrenello.

Btw thanks to whoever corrected my mispelling of Travesty.
Reply | Report as offensive | Link
Thu 16 Sep 2004 20:04
Jaguar Travesty - patently
When has a new Jaguar saloon design said "buy me NOW"!


Roughly speaking, same time as a salesman last made an effort to sell one...
Reply | Report as offensive | Link
Thu 16 Sep 2004 21:23
Jaguar Travesty - VTiredeyes
mmm, i cancelled my new xtype 2.0d estate, about 14 days ago, wonder if i caused this?
;-(
Reply | Report as offensive | Link
Thu 16 Sep 2004 21:41
Jaguar Travesty - Imagos
i cancelled my new xtype 2.0d estate,>>


Why? Sounds like pick of the range to me.
Reply | Report as offensive | Link
Thu 16 Sep 2004 21:54
Jaguar Travesty - VTiredeyes
my wife and I are purchasing a larger newer house, so have sold the saab Conv & LC4.
downgrading cars for a 214 rover for the wife
and im going to get something for £5K.
was going to part chop LC4 in for Jag
feel the need to spend my cash on an investment, rather than Depreciation
Reply | Report as offensive | Link
Thu 16 Sep 2004 22:14
Jaguar Travesty - Sofa Spud
My post above criticised the X-type for its retro XJ6 styling, but BMW and Renault have demonstrated car styling does not have to be 'retro' to be unattractive!

Today I was eyeing up a Fiat Idea mini-MPV in a car park. What a neat looking little car! After a succession of aesthetically challenged cars maybe Fiat are back on track in the looks department. I've seen quite a few Ideas about, so looks seem to sell.

Cheers, Sofa Spud
Reply | Report as offensive | Link
Fri 17 Sep 2004 06:47
Jaguar Travesty - Pete M
As far as retro styling goes, I'll stick to my 1984 Jaguar Vanden Plas H.E. I think the Series 3 was the best of the original XJs, and not many of the following models seem to have the same Jaguar style. I never did like the XJ40, the X300 seems better in the front and rear, but kept the same glasshouse, and S-types and X-types and the new XJ are out of my price range. I think the fiddling with the shape of the S-type, which is on its third interior and third exterior (I think), shows that they couldn't get it quite right. At least the change from the 2.4/3.4 saloons (often misnamed MK 1) to the MK 2 was reasonably noticeable and gave a real improvement. But to be honest, the 3.8 MK 10 was brushed over to become the 420G, the MK VII to the MK VIII and MK IX, so I guess that's what Jaguar used to do, to keep the changes coming to bolster sales, at minimum cost. Has anything changed (apart from the quality, which is fortunately now no longer on the same planet as in the 70s)?
Reply | Report as offensive | Link
Fri 17 Sep 2004 10:10
Jaguar Travesty - Dan J
Patently has hit the nail on the head as regards his economy comment... Car manufacturers are a business, not a charity, and Ford is no exception. With three plants producing 4 different vehicles something had to give in the end. This is nothing to do with the X-Type, it's also nothing to do with experiences of dealerships. Jaguar sales are lower than predicted, the main factor of which being normally strong US sales are being hampered by the weak dollar. It still doesn't move away from the fact that there were too many plants which in this day and age doesn't work.

Think about it from the perspective of if you owned the business. You have a couple of state of the art plants and an old inefficient factory which cannot work economically. Something has to give so you keep the old factory for nostalgic reasons?

I don't think so...
Reply | Report as offensive | Link
Fri 17 Sep 2004 11:15
Jaguar Travesty - Cardew
"Jaguar sales are lower than predicted, the main factor of which being normally strong US sales are being hampered by the weak dollar."

Dan,
Whilst that is obviously a factor it is pertinent to point out that German, Japanese and Korean cars are increasing their sales at a phenomenal rate and their currencies are strong against the US$. Admittedly some of these manufacturers are 'assembling' cars in the USA.

The lack(until recently) of a diesel is not a big factor in USA sales.

Jaguar have almost recovered their reputation from the time when they exported cars that were a disgrace in quality control terms, but the perception now is that their cars do not compete with the upmarket German and Japanese manufacturers like Mercedes and Lexus.

C


Reply | Report as offensive | Link
Fri 17 Sep 2004 13:54
Jaguar Travesty - carl_a
Ford are closing the Jaguar F1 team, unless someone buys the team it will be closed at the end of this year.
www.itv-f1.com/News_Article.aspx?PO_ID=31128
Reply | Report as offensive | Link
Fri 17 Sep 2004 14:04
Jaguar Travesty - Stuartli
Even a company as massive as Ford cannot keep sustaining losses indefinitely.

Would you run your business on such lines....?

Ford is not the first car company to undergo such an exercise or collaborate with other manufacturers (remember Nissan for instance) and it certainly won't be the last.

Reply | Report as offensive | Link
Fri 17 Sep 2004 22:00
Jaguar Travesty - bartycrouch
is nothing to do with the X-Type,


Yes it has in the long term. It was clear to Ford that if Jaguar
was to have any future it would need to produce a lot more vehicles than when Ford took it over; and those vehicles would have to include mid and compact executive vehicles. The problem is that what defines executive vehicles has changed.

If someone wants a small convertible, or SUV or small 4 seater coupe they can stay in the Mercedes, Lexus and BMW brands. What can Jaguar offer them?

it's also nothing to
do with experiences of dealerships. Jaguar sales are lower than
predicted, the main factor of which being normally strong US sales
are being hampered by the weak dollar. It still doesn't
move away from the fact that there were too many plants
which in this day and age doesn't work.


Plant efficiency is vital, but it is no good efficiently churning out cars for which their is limited demand. The truth is that the cars can even be worse than average as long as they reflect what the market wants.
Reply | Report as offensive | Link
Fri 17 Sep 2004 16:24
Jaguar Travesty - Shaz {p}
Latest on the situation:

tinyurl.com/68gac

Looks like a good compromise.

"New allloy sports car" - Is the F-type project back on then - or is it just a replacment for the XK8?

I think the S type (latest version) is what the car should have been liked when launched.

XJ - although not different to look at - still one of the best looking exec IMO, as well as being the best drive (according to all reviews I've read).

I think things will turn when X type replacment is launched (three years away??) as rumors are that it will be rwd, - and the styling - although conservative at present - can only get better.
Reply | Report as offensive | Link
Fri 17 Sep 2004 21:14
Jaguar Travesty - sean
I am an Englishman, working abroad in foreign car plants.

I have seen Ford?s decision today about one of the Premier AutoGroup?s players.

Not happy.

Brown?s Lane is just off the A45, between Coventry and Sutton Coldfield. Used to ride there on my CB175K6 as a lad.

One or two of you know I work in the Euro Car Industry.

I have to work over here as UK plc is falling down the ?U? bend.

Poorest GCSE and ?A? Level results in Europe. Not anymore. Now everyone passes who turns up.

Ford aren?t too impressed with that, and the exchange rate, and the working practices.

Pump fails. Oh, that?s a plumber. Send for one. 2 hours later?..

Yes, it?s an electric pump?. Send for a Leccy. 3 hours later?.

How many industries are you.. no. it?s me too, going to lose before we get a grip?

Jaguar memos have to be translated into English now, so that Americans can understand them.

How clearly can I state this, please?
Reply | Report as offensive | Link
Fri 17 Sep 2004 21:47
Jaguar Travesty - Robin Reliant
Sean,

You've rekindled a memory or two with the mention of the CB175! My first bike, bought new in glorious red and black for a princely £366 spread over three years and thrashed mercilessly. Pity about the Jap tyres of those days, if somebody spat on the road you were off.

Re Jaguar, I could never understand why they spent zillions of pounds running a Formula 1 team. It was always going to take years of hard spending before they could hope to be more than just bit players, and for what? Their most important market is the USA where F1 ranks just below synchronised diving as a sport. If they wanted the kudos of racing success then Indycar would have been a better bet, and probably cheaper too with more restrictions on the technology involved.

I can see the mark being quietly allowed to die by Henry & Co in the not too distant future.
Reply | Report as offensive | Link
Fri 17 Sep 2004 21:57
Jaguar Travesty - sean
Tom,

You're spot on.

I currently ride a Fireblade, and like it. I loved my CB175K6 to bits. It was my only means of transport and I rode it through unbelievable weather.

Remember the front brake? Twin leading shoe. Facing uphill and rolling back, would yours work? Thought not.

This was the sort of thing that impelled us. Compelled us, maybe.

Fantastic. I'm reminiscing, sorry etc.
Reply | Report as offensive | Link
Fri 17 Sep 2004 22:18
Jaguar Travesty - Sofa Spud
Jaguar and Rover are both going through troubles. Rover mainly because its model range is getting outdated and there are no replacements on the horizon, while Jaguar has introduced important new models that don't have that immediate 'I want' factor.

Jaguar possibly suffers from being part of Ford - a two edged sword as it supposedly gave financial security, but as Ford bits and pieces found their way into Jags maybe potential buyers felt the cars weren't real Jags any more.

The announcement of plans for an aluminium Jaguar sports car sound interesting. Maybe the Jaguar division has a better future as a producer of exciting sports and than of luxury executive cars.

Cheers, Sofa Spud
Reply | Report as offensive | Link
Fri 17 Sep 2004 22:40
Jaguar Travesty - sean
Yes, I must admit that I was thinking this too.

The engine in the "Mondeo with party-frock" is one of mine, with 2 small turbos vs 1 proper one.

The floorpan truly is a Mondeo.

Who would pay megabucks more for one than a Ford?

Alu-tech is pure Audi.

Engine is pure VW. Awful symbiosis. Look at the Sharan vs the Ford or Seat Alhambra.

Back to AJS rebadged Matchless, BSA rebadged Triumph, MG rebadged Austin etc.
Reply | Report as offensive | Link
Sat 18 Sep 2004 21:01
Jaguar Travesty - Puppetland
The idea of switching final assembly to CB was put to John Egan in the 1980s. Despite the many positive things Egan did for Jaguar, he decided against this drastic course of action.

For sure Jaguar and Rover have their problems, but with Jaguar there is a blueprint for future plans, a spectacular flagship model in the XJ, and new cars on the drawing board. Also, the image of the cars, particular in the USA, remains high.

The half hearted attempt of the Jaguar F1 team was an embarrassment - they should have thrown the towel in at least two seasons ago.

The FWD X-Type did the company no favours, while the AWD version helps redress the balance. The irony here was that the early Cowley built R75s had the X-Type beaten on quality, ride and overall cabin ambiance. But while the X-Type has marginally improved, the 75 has gone back wards.
Reply | Report as offensive | Link
Mon 20 Sep 2004 23:46
Jaguar Travesty - Imagos
news.bbc.co.uk/1/hi/business/3672082.stm

what would a strike achieve?

desperate times.. yes but striking?

Reply | Report as offensive | Link
Mon 20 Sep 2004 23:48
Jaguar Travesty - Adam {P}
Jag Workers: "We're not going to work"

Ford: "er...Ok then"
--
Adam
Reply | Report as offensive | Link
Mon 20 Sep 2004 23:50
Jaguar Travesty - Kevin
madf said:
>The XJ series is for fat businessmen.

Hey, that's getting personal. I'm not exactly skinny, but fat?.

My wife prefers to call it "the oldfart's car".

I don't know why, but the XJ seems to appeal to men more than women for some reason.

In the XJ's defence, it is the most relaxing and comfortable car I have ever driven. I've had no complaints about rear legroom and the boot is big enough to accomodate two standard Samsonites plus carry-ons.

patently said:
>There is another factor at work, here, as well as the
>long absence of diesels.
>A short while ago I visited a Jaguar dealership, I was
>in a business suit....

My local Jag dealer (in Basingstoke) is the exact opposite even though they've only ever seen me in jeans and polo shirt. So far, they could not have been more helpful, unlike the local Merc and BMW dealers who had as much interest in me as the Jag dealer you experienced.


Kevin...
Reply | Report as offensive | Link
Tue 21 Sep 2004 01:19
Jaguar Travesty - NowWheels
I don't know why, but the XJ seems to appeal to men
more than women for some reason.


I believe that in the USA, it has had a niche as a woman's car. Not as bulky as your usual merkin luxury barge.
Reply | Report as offensive | Link
Tue 21 Sep 2004 09:40
Jaguar Travesty - patently
merkin


Surely the autocensor should pick that one up??!
Reply | Report as offensive | Link
Tue 21 Sep 2004 14:52
Jaguar Travesty - NowWheels
>> merkin
Surely the autocensor should pick that one up??!


That's merkin as in USAnian, not any other meaning :)
Reply | Report as offensive | Link
Tue 21 Sep 2004 14:58
Jaguar Travesty - patently
And there I was thinking that the comment was an clever reference to big cars as substitutes, for those gentlemen lacking that certain something...
Reply | Report as offensive | Link
Thu 14 Oct 2004 15:52
Jaguar Travesty - Ford Plans in detail - Chas{P}
Taken from a recent press release:


Jaguar Cars today announced details of a comprehensive business plan that will reshape the company and focus on the factors that have had a negative impact on the bottom line of the company.

The plan includes:

Product actions, including an all-aluminium XK sports car; strengthening of the XJ range with a premium diesel engine saloon in Europe and a new long wheelbase version in the US, a new high-performance X-TYPE diesel in Europe and an X-TYPE estate to be launched in the US.
Marketplace actions, including a review of Jaguar's retail and market infrastructure throughout the world, and revenue management steps that include a reduction in daily rental units and revised series and model actions.
Cost actions, including the discontinuation of assembly operations at Browns Lane; the transfer of 425 jobs to Castle Bromwich, including generous terms for 400 voluntary separations at Browns Lane; and a reduction of 750 staff and agency positions. In addition, the Jaguar brand will withdraw from Formula One at the end of 2004.
Coventry, Jaguar headquarters and the wood veneer manufacturing centre will remain at Browns Lane and the Jaguar Product Development Centre will remain at Whitley, both in Coventry.

The company said these short- and longer-term actions focus on Jaguar's immediate marketplace challenges and address the fundamental structure of the business and its future strategy. They will act as Jaguar?s foundation for the remainder of the decade.

Key elements of the plan:


Product:

· New all-aluminium XK sports car

Confirmation of a new XK sports car codenamed X150 that will go on sale in early 2006. This will be an all-aluminium car and will be the first production car to feature Jaguar?s new design language, developed by Design Director Ian Callum.

· XJ range significantly strengthened

The XJ range will be extended and strengthened by introducing a premium diesel engine next year to respond to growth in luxury diesel saloons in Europe and further enhance the customer appeal of a car which is already segment leader in the UK. The new long wheelbase version of the XJ, which is targeted at the US market, has received very strong reviews having just gone on sale.

· New high performance X-TYPE diesel

The market appeal of the X-TYPE compact luxury car will be extended by adding a high performance diesel version to the existing range of diesel and petrol-engined variants next year.

· X-TYPE Estate to be launched in the US

X-TYPE Estate (Station Wagon) will be launched in the United States to broaden the X-TYPE range in this key market.

Market place:

· Supply and demand balanced

We have announced a 15,000-unit reduction of production in 2004 to better align stock with on-going demand.

· Market strategy and distribution

We are reviewing our retail and market infrastructure in markets around the world to improve both dealer and market profitability. A new board-level position was recently created to specifically drive this programme with the appointment of Mike Wright, former managing director of Jaguar, to the new role. We will find the optimum solution for each market for Jaguar, Land Rover and Premier Automotive Group.

· Revenue management, Brand and marketing

We are implementing enhanced revenue management actions including reduced mix of daily rental volumes and revised series and model actions. Jaguar will refocus marketing actions on the unique brand position of its vehicles as beautiful fast cars.

Leaner cost structure:

· Consolidate premium aluminium vehicles in Castle Bromwich

Consolidate production of premium aluminium vehicles (the XJ saloon range and the new X150 sports car) at Jaguar's Castle Bromwich plant in Birmingham. This will result in a fully integrated, efficient and technically advanced aluminium vehicle production facility with panel stamping, body assembly and final assembly on the same site.

· Cease final assembly operations at Browns Lane. Wood veneer manufacturing retained on site

Cease vehicle final assembly at the Browns Lane plant in September 2005, but manufacturing will be retained on the site with the wood veneer manufacturing centre, which will employ 310 people. This specialist facility uses a unique combination of traditional skills and high technology to produce the trademark wood veneers for Land Rover and Aston Martin as well as Jaguar.

· Transfer 425 jobs to Castle Bromwich and with generous terms for 400 voluntary separations at Browns Lane

425 jobs will be transferred for those employees that wish, to Castle Bromwich plant for the final assembly of the XJ saloon and new X150 sports car, which will be produced in early 2006. The separation terms for the remaining 400 positions will be Jaguar's most generous ever for a voluntary redundancy programme. Jaguar will work closely with Trades Unions, government and local development agencies to oversee implementation of the Employee Support Programme.

· A reduction of 750 staff positions. This is part of a 15% salaried equivalent cost reduction since 2003

Further back office synergies with Land Rover will result in a leaner Jaguar. There will be a voluntary redundancy programme for 500 salaried employees and a reduction of 250 agency positions. These reductions are an essential part of a leaner organisation and cost structure and a re-sizing of the Jaguar business.


Other actions:


· Jaguar Headquarters and the Jaguar Daimler Heritage Trust to remain at Browns Lane in Coventry

Jaguar has very strong ties with the City of Coventry. It has been located in the city since 1928. As part of this package of measures it was considered important that Jaguar remains headquartered in Coventry at Browns Lane. Bibiana Boerio, Managing Director of Jaguar, will be based there. These facilities together with the JDHT and the wood veneer manufacturing centre, take up a small part of the Browns Lane site. The rest of the site will be sold for
re-development.


· Whitley to be retained as Jaguar Product Development Centre. Science and Business Park to be developed at Whitley with Coventry Council to develop hi-tech hub for Coventry

Whitley will be retained as the Jaguar Product Development Centre where all future Jaguars will be designed and developed. Jaguar will press ahead with Coventry Council and other local enterprise agencies to develop the science and business park which has already been granted planning permission. It is hoped that this will become a flagship venue for Coventry?s increasing focus on high technology industries.

· The Jaguar brand to withdraw from Formula One at the end of 2004

As part of the package of measures to get the Jaguar business back on track and focus management and financial resources on the core business, Jaguar will withdraw from Formula One at the end of this season. See end of release for further detail and for Ford Motor Company Formula One business plans.

Joe Greenwell, Chairman and CEO Jaguar and Land Rover, "Our new business plan was developed following a rigorous review by the Jaguar management team. We examined a number of alternatives and I would not be presenting this plan today had I not been absolutely convinced that it is the right plan and completely necessary.


"The plan is wide-ranging, extends over a number of years and touches most aspects of the business. It also includes some severe measures that we do not take lightly. But that is a reflection of the highly competitive and global nature of the business we are in.


"The fact is despite significant sales growth and excellent levels of quality in recent years, we have not been able to keep pace with significantly larger competitors. We have too much capacity and this is our underlying structural problem. Our bottom line has further deteriorated this year with the weakness of the dollar, unprecedented incentives in the premium market and the shift from premium cars to SUVs. We had no choice but to take action and I firmly believe that all the elements of this plan are essential if we are to stem the losses."


Mr Greenwell also confirmed that, despite the difficult business circumstances, it is the intention to do everything possible to achieve this restructuring on a voluntary basis. "It is with deep regret that we have had to announce some actions today which affect people's jobs. However I can give everyone my personal assurance that we will do everything we can to support those affected."


Mr Greenwell summed up, "The package of actions we have announced today will focus on the issues we currently face and will help position Jaguar for a bright future founded on strong product plans, a leaner cost structure and a stronger focus on margins in the market place. I believe this plan is essential to Jaguar's future and will enable us to contribute more positively to Ford Motor Company's bottom line."


Mark Fields, Ford Motor Company, Executive Vice President ? Premier Automotive Group and Ford of Europe, said: ?Decisive action was needed to get Jaguar back on track and to ensure a viable future. Despite the actions taken by the company?s management over the past few years and despite the fact Jaguar is again the highest rated European brand on product quality, Jaguar is back in a serious loss-making position. There are a number of external factors which have exacerbated the situation but we have faced and tackled the fundamental reality, that Jaguar simply cannot support three assembly plants with annual sales of 125,000 cars."


Fields, Ford's most senior executive based in Europe added, "Manufacturing capacity although a significant factor is only part of the issue and the solution. What we have developed is a series of actions to strengthen Jaguar. These also include a leaner organisation structure on the cost side of the equation and on the revenue and brand side, a package of product and marketplace actions which will drive the company forward in a way which is more appropriate for the brand and will drive a better bottom line."


Mark Fields concluded: ?There is massive global affection for the Jaguar brand but frankly we were operating to a business model that really offered little chance of generating sustained profitability except in times of favourable exchange rates. That had to change. The challenges we faced were both strategic and tactical requiring attention to all elements of the business. This plan has the full backing and support of the Ford management team. Joe and I will be working together with the Jaguar team to implement the plan."


Jim Padilla, Chief Operating Officer, Ford Motor Company and Chairman, Automotive Operations said, "Jaguar is one of the most respected, valued and desired line of cars in the world. The Ford Motor Company is committed to Jaguar and its customers, and we will continue to support this incredible brand and management team. The actions we are taking today, while difficult, are absolutely necessary to set Jaguar back on the right path and ensure a strong and sustainable business for the future."

The Jaguar brand and Ford Motor Company withdraw from Formula One at the end of 2004 and Ford puts its Formula One businesses up for sale:

Joe Greenwell said, "Jaguar's presence in Formula One has been a valuable marketing and brand awareness platform particularly outside our main markets of the US and the UK. However it was our collective view that it is time for Jaguar Cars to focus 100% on our core business."


After a thorough review over many months Ford Motor Company has decided it can no longer make a compelling business case for any of its brands to compete in Formula One. Having reached this decision our focus has turned to securing the best future for our Formula One businesses and our employees in these businesses going forward. We are therefore putting our Formula One businesses up for sale.

- ends -


Reply | Report as offensive | Link