Ford keeping Jaguar in the house: Mullaly says "We're 100 percent behind them"
Plain and simple, Alan Mulally is keeping the cat in the house. While admitting that there is a ways to go in the Ford turnaround plan, he asserts that, unlike Aston Martin, Jaguar will remain in the stable, citing the fact that "Jaguar is on a really good plan" as the reason "why we're investing in them."
It's been really hard to get a solid bearing on the future of Ford's leaping feline. Mulally's Ford, which is clearly not afraid to make ruthless cuts, sold Aston just as it climbed into profitability and began unveiling stunning future models. Jaguar, however -- in spite of last year's recall of every 2006-2007 XJ, the marque's 62% drop in sales from 2002-2006, and a 26.8% drop in year-on-year sales up to now -- is envisioned as a high-end niche maker with high-end niche profits. Jaguar remains a critical darling, like a movie showered with awards but seen by only four people: the new XJ, XK and C-XF are awash in trophies, and the brand still wins quality and sales satisfaction surveys.
While the brand new XJ and the production XF can't come soon enough, if they don't come correct, it is hard to believe Mulally won't rid the PAG of its house pet.
[Source: The Car Connection]
Reader Comments (Page 1 of 2)
Bryan 3:11PM (4/11/2007)
I think Jaguar learned its lesson. It needs to make more revolutionary designs. I think they are on the right track to be profitable again in the near future.
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Infinihertz 3:22PM (4/11/2007)
Not that I could ever afford one, but I hope Bryan is right. It would be a shame to see that brand go away - Ford probably wouldn't get many (if any) buyers like it could with Aston Martin, if it decided to bail in the future. If Ford doesn't make them successful, I would expect Jaguar to go away completely.
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Jake 3:32PM (4/11/2007)
I will never understand the appeal of Jags. What cars do they have that even begin to compete at the top of their respective segment? I think of em' as Luxo-cruisers that have a cute kitty on the bonnet and not much else. Boring boring boring.
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H 3:38PM (4/11/2007)
I had the same Raison d'être.
Growing up, I always thought of them as old fogey's cars akin to chromed out Caddillacs and Lincolns.
However, at 36, I am starting to see the appeal of them. They have a sumptuos quality.
The interior (of the XK and XJ) makes you feel royal. The Xj with tan connolly and black piping is gorgeous.
Unlike the caddys and lincolns of pasts, the jags do have a spirited drive.
Moreover, Jags are different. In a world where the parking lots are filled with BMWs, Mercedes, and Lexus, a jaguar is definitely a non-coformist vehicle.
I guess at 36, I am old fogey.
Now, for the X-type and S-type, they need to axe those models.
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HotRodzNKustoms 3:42PM (4/11/2007)
I personally love Jaguars I always have, ever since my dad's XJS roadster a Jaguar has always been a status sign to me. That you could buy a S class or a 7 series but you chose the prettier more driver oriented car in exchange for a few gadgets you would have never of known you had until you go to sell the car and somebody asks you if you have it. "Yes sir my S class has the parkomatic-nuematic-hydramatic-BB King- electronic shocks"
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trans_am02 10:53PM (4/11/2007)
Wow. Everytime I see a photo of the C-XF, I practically have an orgasm. They can't bring it to market fast enough. With the same shape of the concept, this is the car Jaguar will be remembered by, not the E-type.
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roadside observer 3:53PM (4/11/2007)
What I wanted to see Ford do was sell Jag and keep Aston ... but mgmt. took the opposite route. Not that I don't like Jags - I've been a Jag admirer for years - but Aston just had a little more appeal to me. Hopefully, they'll get Jag in fine shape. The marque deserves it.
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Bryan 3:55PM (4/11/2007)
Jake I don't see how you find a Jaguar boring. In a sea of bland beige me-too cars this is one brand that stands out. You can tell a Jag a mile away (unless Kia or Hyundai copies them). There is one thing Jag can claim that no one else can..they have never made an ugly car..at least to me..and I am sure plenty will agree. Recently at the Houston auto show I looked inside all the BMW's. I was very disappointed. A few looked so cheap inside with-- dare I say..cavalier type plastic! Such a nice look on the outside with a low rent interior. Even my friend who can afford one and really wanted one was disappointed. Once Jaguar has completed its transformation, I think it will well off. Until then, I don't expect things to get worse or better.
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Don 3:58PM (4/11/2007)
That's about the only thing you CAN do with Jag...position it at a higher niche point and hope it pulls in higher profits.
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andre 4:13PM (4/11/2007)
as an owner of my second XKR convertible (the 2008 on order) and XJL prior, the cars carry evidence of cost cutting rather than "investments in the mark." Ford ought to remember that press releases are not bankable and no one remembers yesterday's headlines. Aston Martin has been building exceptional quality high performance cars at solid value, hence profitability. Ford's position with repect to spinning off Jaguar is infantile and tranparent - who would buy it in its present condition anyway?
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ckm 4:28PM (4/11/2007)
#3 My XJR will do 0-60 in around 5.5 seconds and it's more comfortable that an M5. Plus I'm not driving the same car as everyone else.... Hardly boring, esp. if you turn off the traction control and let her rip.
Never mind that if you buy it used, you can get what is basically a supercar for cheap (around $20k for a 2002), with Lexus-like reliability (according to JD Powers).
It's an 'elegant brute', which I think is a great description.
http://www.autobytel.com/content/research/index.cfm/action/showarticle/AID/138142/startrow/101/year/2002/articletype/0/id/22436/ovchn/INK/ovcpn/SiteMatch/ovcrn/SMX/ovtac/PI
Chris.
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Mike Botros 5:48PM (4/11/2007)
I think what Ford may be trying to do with the new redesigned Jaguars, is offer the sporty end with a decent price tag. I don't know where they're planning to price the XF to replace the S-type, but if it's around the price of the current S-type, this could fill the void in the Lincoln line, offering sporty cars with only a small premium above Lincoln. And I'm sure Aston woulda made them more money than selling Jaguar. And I have always loved Jaguars, but recently they have been looking outdated.
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whofan 6:24PM (4/11/2007)
Jaguar needs one great car with awesome looks. Then it would be Austin who?
Austin Martin has one great car. Thats all they needed.
Ford should have merged both, and let Austin do the designing.
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whofan 6:28PM (4/11/2007)
Sorry I spelled Aston wrong. #12
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John 7:30PM (4/11/2007)
Keeping the cat is not the biggest issue for Ford. The biggest issue of survival is trying to convert the Ford's product-centric culture to a service/experience-based culture where the customer experience drives its processes. Product quality and innovation are simply not enough these days. All quality and innovation do is gives Ford the ability to play in the big global game. During this cultural transition they might be able to also change from a transactional focus on sales to a relationship approach based on the differentiated value and experience they deliver to their customers. Today they focus on satisfaction which is the wrong dimension. Over 90% of auto customers rated their satisfaction level as satisied or totally satisfied yet of those only 40% came back for more purchases. And these purchases included oil filters, floor mats and not just new or used vehicles. To be successful tomorrow, Ford will need to focus on service quality and the measurable links to satisfaction, value, loyalty and retention.
Case in point of Lincoln's product-centric approach: I own a 2005 Lincoln LS with 24k miles that uses the Jaguar V8. Most of the technology works as it should except my steering wheel positoning memory computer. Sporadically the steering wheel does not position itself correctly as it should and I have to manually adjust it. It happens all the time, in some instances, except when the vehicle senses the dealer's property approaching. Then it works just fine.
The dealer says it can't help until something fails and also that Ford does not pay them for diagnostic time. So where does that leave me? I have to take my time (there is very real cost for me here) to discuss the issue with some call center person who has absolutely no clue as to what I am talking about and simply recites the script "We want to do everything we can to help you." This further enfuriates. They say they will excalate this to another level if I give them my VIN. I now have the perception that Ford will now contact the dealer where I last had my vehicle serviced through their database and say I am complaining about what the dealer did or did not do. Great. Now I have to wonder if the dealer will retaliate with shoddy service that I can not readily detect.
Why doesn't Ford empower their dealers to proactively serve their customers and get the factory experts involved to effect a fix instead of offloading the costs onto the customer who is then in complain mode; not to mention the fact that it also puts the relationship in service recovery mode. I can't imagine Lincoln not knowing, from a probability standpoint, what the major parts would be that could cause the problem.
Can you imagine owning a Lincoln that simply quits in traffic every few days when you drive it yet when the dealer drives it it doesn't fail? Their only retort will be, according to the current process, "Please bring it back when it fails so we can get paid by the factory." I wonder what Toyota does in this case?
I'm glad the airline industry does not take Lincoln's diagnostic approach.
John
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Aki 7:18PM (4/11/2007)
"The dealer says it can't help until something fails and also that Ford does not pay them for diagnostic time. So where does that leave me? I have to take my time (there is very real cost for me here) to discuss the issue with some call center person who has absolutely no clue as to what I am talking about and simply recites the script "We want to do everything we can to help you." This further enfuriates. They say they will excalate this to another level if I give them my VIN."
I think you're being paranoid about the VIN. They can track VINs to see if they find a common theme in customer complaints (like people from vin 2HGFXX001-2HGFXX999 having tranny issues, for example).
And unfortunately, dealer not fixing the issue until they can replicate it is I believe standard practice. I insisted my syncromesh on my Honda was messed up and should be fixed under warranty--went to two different dealerships, and kept sending it to them until they could replicate the problem (they replaced the syncro).
I agree though, if the dealers in general give poor customer service then you're likely never stepping foot in there again.
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John 10:21PM (4/11/2007)
To AKI. "And unfortunately, dealer not fixing the issue until they can replicate it is I believe standard practice."
I appreciate you insights but it evidently is not standard practice. My Dodge dealer will replace parts on a symptom basis without getting the factory involved. They know the value of Return on Customer which is the net present value of all future revenue streams from my business as the third Dodge Cummins will attest. My wife's Lexus dealer will also replace suspecting parts just to keep her happy and buying more.
As far as the VIN goes, since you are not in control of the data or the process you never know what goes in the "dealer eyes-only" files. Being in the computer technology services field for over 35-years I know how they can be used in ways they were not designed for.
John
John
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Matt 3:29AM (4/12/2007)
"Mulally's Ford, which is clearly not afraid to make ruthless cuts, sold Aston just as it climbed into profitability and began unveiling stunning future models."
I do believe that makes them DUMB.
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Steve Crossman 11:37PM (4/11/2007)
Dear Jake,
As an old dude going through my mid life crisis My S Type R outperforms 90% of the supertuners,rods,& Hemis! Unlike my former M5 it's also luxurious and allows me the pleasure of both performance &comfort! I can happily put up with the "glorified Taurus" comments from my Honda driving colleagues Its only boring to those who dont drive one!
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mk 12:04AM (4/12/2007)
As a customer, budgets not-withstanding, Aston makes much more appealing cars than Jag.
But from a business point of view... Which can a big company do more with?
A mainstream luxury brand that can be developed, or a niche sports car maker that makes a great, but limited range product?
Aston can do well in a smaller environment. Jaguar needs more cash.
Aston can be profitable selling to a few well heeled customers, and probably prefers it that way. Jaguar needs a larger customer base, and broader appeal.
Ford needs a mainstream sport-lux contender with british flair, (something the japanese don't seem to be seeking, and different than german engineering.) Ford doesn't need a ferrari alternative with a stiff upper lip, fairly regardless of how fantastic Astons are.
It becomes a function of how many new customers can each brand be made to attract.
Jaguar can be re-invigorated, and attract more customers than it currently does.
Aston is on it's game, but has a narrower audience, and to widen it's appeal is tantamount to lessening it's value. A truly mass-market Ferrari would be the same thing. A dilution of the brand.
So I can see why they let Aston fly, and are keeping Jaguar closer.
NOW, they just need to make good on it.
Jaguar needs to be slightly re-organized. A mid range set and a full-lux set. Mid-range would be XF, and a mid-priced sports car. Light weight, good handling, and a successor to the e-type's crown of being one of the sexiest cars ever drawn up, and half the price of the Aston V8 Vantage.
XF would do well to emulate it's concept as closely as possible, for a four-seat sport sedan with coupe cues, and an aggressive demeanor.
The Lux line would then be a replacement for the XJ, fully new, but more dignified than the agressive XF. Half way between a sport sedan and a Rolls, with the nicest qualities of both. A British answer to the Quattroporte and Lexus LS. The XK does well as the coupe/convertible in that segment and price point, with the proper support and updating.
Let Lincoln do what Lincoln does. Big American Luxury, and now entry-level luxury with the MKZ. Lincoln badly needs to get back to a new modern big town car, even moreso than Ford needs the "Interceptor." With a few cosmetic changes inside and out, it could be a new Continental, in the vein of the classic Continental range topper.
The MKR lux/sport wouldn't do to badly either, as an americanized platform mate to the XF, with the Ford powertrain catalog, rather than the AJ-V8 line.
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