By Leftlane Staff
Wednesday, Feb 8th, 2006 @ 12:47 pm

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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