In a bold and unprecedented move, Jaguar has announced that it will discontinue all its current car and SUV models by the end of this year. This decision marks a significant shift in the luxury automaker’s strategy as it prepares to transition to an all-electric lineup by 2025.
Jaguar Getting Extinct?
Jaguar Land Rover (JLR), the parent company of Jaguar, has been grappling with sluggish sales and profitability issues for several years. The company’s CEO, Adrian Mardell, recently revealed that the decision to discontinue models such as the XE, XF sedan, XF wagon, F-Type, E-Pace, and I-Pace was driven by their lack of profitability. Mardell candidly stated that these models were generating “close to zero profitability” and were considered “lower value” products.
The only model that will survive this mass discontinuation is the F-Pace SUV, Jaguar’s best-selling vehicle. However, its future also hangs in the balance as Jaguar moves towards its electrification goals. The company plans to introduce a new wave of electric vehicles (EVs) underpinned by the long-wheelbase JEA electric vehicle platform. These new models are expected to feature advanced technologies such as rear-wheel steering, all-wheel drive, and fast-charging capabilities.
A Failed Strategy?
Jaguar’s ambitious “Reimagine” strategy, first outlined over three years ago, aims to reposition the brand as a high-end luxury automaker, competing with the likes of Bentley. This strategy involves not only a shift to electric powertrains but also a significant increase in the average selling price of Jaguar vehicles. The new EVs are expected to adopt a minimalist design language, setting them apart from the outgoing internal combustion engine (ICE) models.
EVs All the Way, Will it be Enough?
The transition to an all-electric lineup is not without its risks. By discontinuing its current models and focusing on lower-volume, higher-profit vehicles, Jaguar is deliberately reducing its sales volume. The company aims to sell fewer than 50,000 cars annually, a stark contrast to its previous mass premium model. This move is part of a broader effort to revitalize the brand and ensure its long-term sustainability in an increasingly competitive EV market.
As Jaguar prepares to unveil its first new EV concept later this year, the automotive world watches with bated breath. The concept, rumored to be a sleek grand tourer with a six-figure price tag, will provide a glimpse into the future of the iconic British marque. Additionally, a large SUV is reportedly in the works, further signaling Jaguar’s commitment to its electrification strategy.
The coming months will be crucial for Jaguar as it navigates this transformative period. The success of its new EV models will determine whether the brand can reclaim its position as a leader in the luxury automotive market. For now, the discontinuation of its current lineup marks the end of an era and the beginning of a new chapter in Jaguar’s storied history.