As the old saying goes – a disaster is unfolding before our eyes. Worldwide sales of the Jaguar Land Rover group fell by 38 percent, which is just over 80,000 vehicles sold. Internationally.
This is the producer’s worst quarterly result since 2013. But what exactly happened? Everything can, of course, be blamed on the epidemic. But this is only one of the blows that hit the manufacturer in recent years.
A long time ago, in 2008, Ford for the proverbial fries sold the Indian company Tata Motors, which has never produced or dealt in any way with the distribution, manufacture or sale of luxury cars. Trucks – it was their horse. The Indian father, however, took the subject seriously and released more than 7.5 billion dollars from his own pocket to correct the mistakes of the previous owner. The main flaw was the fact that Jaguar was niche – cars were not mass-produced products – they were aimed at a specific, more established customer. Dad knew that in such a competitive market, the new addition to the family would not exist and would disappear quickly.
Jaguar was famous for its luxury model XF and was a worthy rival to the German competition, namely the E class and the BMW 5 series. But in the important D segment for sales, there was a void. How about a BMW 3 competitor? Finally, the Jaguar XE, designed by the legendary Ian Callum, has arrived. The first SUV of the brand also appeared – F-Pace. Meanwhile, Tata Motors has committed additional resources to new factories in China and India. But there were problems that, unfortunately, could not be foreseen.
The first blow
The first unexpected blow came … from the British. At JLR headquarters, the word Brexit quickly began to fade from view. Due to uncertainty over the supply of parts and legal problems, engine plants in Liverpool, Birmingham and Wolverhampton began to shut down. The Jaguar-Land Rover Group also began to look around nervously – BMW already had a plan for too high to flee the Islands and close his factory. near Oxford. Honda wanted to do the same. However, the decision to remove British brands from the country was not an option. This meant the loss of around 40,000 jobs – 260,000 sub-contractors would also lose their jobs. As JLR chief Ralph Speth said,
A bad Brexit will cost us more than £1.5bn every year.
In 2017, the JLR concern sold a record number of 116,000 vehicles in America. Everything was going well. What could go wrong? During that time, the European Union sent more than 1 million cars to the United States. And USA – only 233,000 cars. This could not have gone unnoticed by then President Donald Trump. As he said:
Europeans create trade barriers. They don’t want our agricultural products. They don’t want our cars. They send us Mercedes like cookies
Mercedes would probably be affected by the additional duties on cars, but not as much as jaguar, whose US market was undoubtedly very important. The German rival of the first cars could, at least partially, restore sales in the Chinese market. Meanwhile, JLR’s sales in the Middle Kingdom were falling sharply…
Life for the JRL group is not easy to this day – the epidemic and the lack of semiconductors for important equipment aggravates the problem, although of course this applies to brands of all manufacturers. Also on the Polish market, until recently there were conflicts between the former importer and the headquarters of the company. And it was almost a huge overdue sum of around 16 million euros for cars and 2.5 million pounds for unregulated spare parts.
The question of whether the cat will roar and wonder loudly, not only in our domestic market – remains open.