Jaguar Land Rover finally withdraws from UK dealership contract

A change of direction at Jaguar Land Rover. For several months, the manufacturer has been testing the prototype of the agent contract on the British market with the plan to develop it at the end of 2024.

But it seems that this strategy is not achieving the expected success. While Jaguar Land Rover is not communicating the reasons for this change, it does indicate that Jaguar Land Rover’s new luxury position requires a different approach.

Read also: Jaguar Land Rover: on the road to change

“We have created new principles in collaboration with key investor partners, based on the ‘plus’ model of the retailer, which will put the customer first, being true to our values ​​of modern luxury and the strategy of Brand Houseso that we can move forward with sufficient speed and without interruption”has shown Patrick McGillycuddymanaging director of Jaguar Land Rover in the UK.

Appreciated by suppliers

In short, Jaguar Land Rover returns to the dealer contract with some changes. “VSand the agreement with our UK suppliers will result in full stock supply and transparency allowing our customers to choose their car faster and more easily, a fully integrated in-store and online journey, website and even coordinated sales of all new cars”has followed Patrick McGillycuddy.

A change which seems to have been well received by all UK distributors. “(…) The franchise model is a proven and reliable model, which can be intelligently adapted to meet the needs of all stakeholders involved in the new car transaction, namely customers, retailers and manufacturers (…)“, summary Darren EdwardsCEO of Sytner Group, was quoted in a press release.

“The announcement to proceed with the consensus model is a decision that was taken in consultation with the investment communitycomplete Robert ForresterChairman and CEO of the Vertu Group (Penske Automotive Group). It provides the stability needed to continue providing innovative services to our customers without distraction. On this basis, we welcome this information“, he continues.

In turn, Gareth Williamsmanaging director of the Hatfields group, points out that “JLR’s Reimagine strategy focuses on the luxury experience of customers (…). JLR took a positive approach by partnering with several investors before finalizing its retail plan to implement Reimagine. During this collaboration, we all agreed that the sales model provides a solid way to deliver these results to customers, taking into account the current state of sales (…)“.

No lesson in France

Reached by phone, the main French distributor in New Aquitaine comments: “Unlike the UK, France did not care about the agency contract. I am not surprised that the brand is stopping this experiment, because for me this sales model is completely incompatible with the quality of service that customers expect from a luxury brand.”

Read also: Neubauer Group soon in new colors for Jaguar Land Rover

“Luxury is the closest possible service to customers, he continues. At the price we now sell Range Rovers at, the customer wants to have a contact person with a mobile phone, a contact person who has commercial independence. We can do this as a businessman, not as an agent.”

Of course, the agency contract model doesn’t work as well as developers would like. According to our information, Ford is going backwards in the Netherlands, while Belgium’s Stellantis is facing such serious problems that the sales of the group’s brands have fallen in levels in recent months.