When Jaguar told U.S. dealers in 2000 that its sales volume would double in the coming years, many investors like Dennis Squitieri jumped at the chance to join the party. Unfortunately, as AutoWeek reports, thing didn’t turn out so well for many Jag dealers. “We drank the Kool-Aid,” Squitieri says. “We spent a lot of money on expansion, on adding capacity. But we also spent money in stupid places because we were growing.” And the sales growth never came. The entry-level X-Type flopped, and Jaguar’s sales went into free fall. Last year Jaguar’s U.S. sales were down 50.3 percent compared with 2002. Likewise, Squitieri’s sales of new Jaguars are down 40 percent at both stores, and he is propping up his profits with service, parts and used cars.
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02/08, 1:18 PM
posted by:
Scott Anderson
I feel really bad for some multi-millionaire who made a stupid business decision. If I knew that a once out of business luxury maker were looking to increase volumes, and dilute brand character with Ford front drive components (X type) and try to sell high volume from unique boutiques built from scratch, I would question the reasoning right off the bat. Would a customer buy garbage if it were wrapped in a Nieman Marcus bag? maybe at the $50 transaction price, but not when you are talking about a $30K plus investment. Americas money has diluted its brains. Somewhere in the late 90’s, Ron Zarella and his similar minded marketeers managed to convince the auto industry that cars wehere like any other commodity, just build **** and wrap it up real nice. Meanwhile, the Japanese adn Germans continued to invest in technology and product, whil American copmpanies go bankrupt. This guys’s problem is not Ford Marketing, but lack of sound business judgement. If only I were that blind with all that money, I could sure find better ways to spend it!
02/08, 3:29 PM
posted by:
Matt
I couldn’t agree more with your assessment of the situation, and the perceived lack of judgment by anyone thinking that Jaguar (under the acquisition of Ford) would be a worthwhile investment (especially considering the cross-platform elements). But I think on a larger scale that this speaks to the general problem plaguing American cars: attaching value through heritage only. Several American brands are solely relying on their past success and branding from previous generations without providing a modern replacement of their iconic achievements. (Of course there are exceptions here). Where is the innovation? Instead we get recycled cross-platform styles that are only mild improvements over their late 20th Century counterparts.
02/08, 5:50 PM
posted by:
crazy88since88
Come on, lets be honest, jaguar has a historic name, but its cars are ****!
The XJ, no serious changes worth luring new buyers, its damn near looked the same since my granddad had one, Boooooo! And that 2009 update / redesign is too damn long ahead.
The S-Type, it was the “IT� car for a minute & that was IT. Its boring now also.
The X-Type has been X’ed!
And The Coupe, its hot, but, that’s it!
Jaguar Need a Whole New Line Up!
A Crazy 500HP Super Coupe Sports Car, Starting around 160K
A Luxury SUV, Something Along the lines of the Infiniti FX45, Not All Big or based around the Ford expedition platform, Small, Quick, 4-5 Passenger Luxury mover, With 335 & 400HP engines. (hell maybe even a V10 or 12 as a 3rd option)
The New XJ that looks like that new Aston Martin Rapide.
The XK is Fine. (but not enough)
An All New S-Type, Ditch The Old Design all together!
An All New Entry Level Coupe with Hardtop Convertible.
And a New Entry Level Model, sedan & wagon.
Change the Model Letters Too! Stick to one thing! The J-Type (XJ), K-Type (XK), V-Type (SUV), K-Type (New Sedan, wagon & Coupe)
Or ANYTHING, Something! Jaguar is so boring! But the name has history. (or will be history…LOL…LOL…)
02/09, 12:45 AM
posted by:
chase
I agree 100%. Jags are pricey, and have poor reliability.
02/09, 6:43 AM
posted by:
BAC
Jaguar’s styling is ageless but thats because they never change it.
They should drop everything untill they can get the XJ and XK right and get them to sell.
Then branch out from success not borrowed money from parent company Ford.
A supercar is never looked on as a bad thing.
This is starting to sound like they should just give up.
02/09, 3:59 PM
posted by:
Thesandman
Jags have always been pricey and unreliable. They lost the one thing that brought them to the party – cachet. Now, when you take your XJ in for service, you mingle with some plebe in a Mondeo.