Jaguar cuts list prices in the US to better play in the cutthroat environment luxury car brands face to appeal to American vehicle buyers.
“We no longer want to be a high-priced outlier in the luxury market,” says Rob Filipovic, head of product planning for the Jaguar Land Rover in the U.S.
Jaguar Sales Lagging Other European Car Makers
Jaguar, which traditionally has sold cars instead of trucks, has suffered in a market where buyers have turned in droves toward SUVs. European nameplates are the fastest-growing group of brands in the U.S. market. Jaguar, which is owned by India’s Tata Motors, has not seen any of that growth, however. Jaguar sales through the first eight months of the year are down 4.4% from the same period last year, Autodata reports.
The price cuts come as the iconic company prepares to launch a luxury sport-utility vehicle, allowing it to enter a quickly growing segment thriving amid low gasoline prices.
Jaguar Cuts List Prices In The US
The 2016 Jaguar XF 35t midsize sedan with a V-6 engine will be base-priced at $52,885, including shipping, down 9% over the lowest-priced 2015 model. The 2016 XJ flagship sedan will start at $75,395 with $7,000 more in goodies — standard ventilated seats, a fancier sound system, LED headlights with automatic high beams and more. The entry-level XE will start at $35,885, which Jaguar says will put it in the heart of the market, targeting it towards newer, younger buyers. Pricing on the F-Pace has not been announced.
Following Failed Ford Strategy
The price cuts mirror a strategy Jaguar employed more than a decade ago while owned by Ford Motor Co. by offering its X-Type car aimed at the mass market. Jaguar officials failed to appeal to the lower end of the market and reversed course.
Warranty Enhancements, Too
In addition to the price cuts, Jaguar is enhancing its warranty to five years or 60,000 miles from four years/50,000 miles and offering free scheduled maintenance.