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Automotive News

November 1, 2014

You don't read articles like this everyday:

(Article Quotes):

Jaguar Land Rover dealers are struggling because of acute shortages of key products, said Joe Eberhardt, the company's CEO for North America. Staff Reporter Diana T. Kurylko interviewed Eberhardt, 51, last month.


What's your biggest accomplishment since joining JLR, and what are your goals going forward?


The biggest accomplishment is to continue the positive development of the business in North America. There is nothing that needed to be fundamentally changed. In many situations where you come in, you need a turnaround or to start this fresh or new. We are not moving or changing brands or trying to reinvent the retail model.

A lot of positive initiatives have been launched. It is not a big accomplishment, but that is not disappointing to me. Providing the support and focus to the initiatives and managing this situation with dealers -- that is challenging. We're providing the comfort that there is relief in sight with the availability of Land Rovers and a bright future for the Jaguar brand.

How much inventory is there?

Days supply at the end of September is on average 40, down from 75 earlier in the year. We have 35 days of XF and 27 on the XJ. Land Rover is 18 days total, Range Rover Sport is 11 and Range Rover is 12 -- which is unheard of. We have a six-month sold order bank for the Range Rover, four months for the Range Rover Sport and three months for the LR4.

We have opened up the pipeline, not just the next 60 days but further out. We are opening up the allocation and product system that far out so that dealers can know when their vehicles are coming.

It's a problem, but a good problem to have. You can either have too many cars or not enough. It has just been extreme.

How are Jaguar dealers coping?

It is very challenging. We have low inventory and a fairly complex model lineup for Jaguar, and it is very difficult to fill customer needs. We need to manage dealers through that process. They aren't very happy about it, and it's understandable.
 

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Cadillac would do well to follow and possibly emulate the sucess of the Jaguar Land Rover Group. They seem to be executing perfectly on-par.

Must be a few people at Ford kicking themselves for letting this one go (although of course, they simply had no choice at the time - and were lucky to even find a buyer).

I am looking for a new vehicle. Was at a BMW dealer this morning and saw a transaction which my salesman reported as the sale of a BMW i8 for $27,500 over list. The buyer was thrilled.

I was jealous.
 

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Cadillac would do well to follow and possibly emulate the sucess of the Jaguar Land Rover Group. They seem to be executing perfectly on-par.

Must be a few people at Ford kicking themselves for letting this one go (although of course, they simply had no choice at the time - and were lucky to even find a buyer).

I am looking for a new vehicle. Was at a BMW dealer this morning and saw a transaction which my salesman reported as the sale of a BMW i8 for $27,500 over list. The buyer was thrilled.

I was jealous.

JLR have a lot of new stuff coming down the pike and so does Cadillac. Jaguar and Cadillac (LR to a lesser extent) are constrained by the amount of models they offer, but once they have expanded their product portfolio the situation should change.

For Cadillac getting the new XT5 to market will (basically their volume leader) help, and for Jaguar obviously the XE in early 2016 is for all intents and purposes essentially the Cavalry coming over the hill to save the day. As long as the Discovery Sport is not priced ridiculously high it's probably going to sell in greater numbers than the meh LR2.

Imo The LR Discovery Sport looks better than all of it's contemporaries. It looks Excellent in more muted conservative colors, but also looks fantastic in a wacky shade of orange.






 

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http://seekingalpha.com/article/254...tember-sale-lower-sale-but-the-right-strategy

Total JLR units declined to 4,248 (-9.6% y/y) for the month driven by LR (-8.3%) and Jaguar (-13%). This compared with BMW (+8.6%), Mercedes (+10%), and Audi (+14%) which have been aggressive in offering incentive to prospective buyers.

On the other hand, JLR's incentive declined -38% y/y with LR incentive down the most (-70% y/y) to $300, which is the lowest among the luxury brands. I note that incentives for Evoque, LR2 and LR4 all saw 60-75% decline in incentives while Range Rover and RR Sport saw zero incentives. Jaguar saw an average of 20-30% decline in incentives.


While the lower incentive may have negatively impacted the overall sales volume, LR inventory continues to remain low with approximately 17 days of sale at the end of September, flat vs. August but 5 days lower than a year ago. Jaguar ended the month with 40 days, s. 59 in August and 70 a year ago. Given the tight supply, management has been focusing on shifting the more popular models to the more profitable markets and avoiding the competitive environment in the US. While the US sale may be negatively impacted as we have seen in September, the JLR's overall profitably will likely improve because of this strategy, in my view. Moreover, while competitors have been maintaining their incentive level to attract sales, JLR's decision to maintain a rational pricing is accretive to the overall brand, which is a long-term positive.
JLR incentives are the lowest in the industry by a very high margin. Range Rover and Range Rover Sport have NO Incentives, in fact buyers pay Premium for faster delivery. Waiting list is 4-6 months. Inventory is Lowest in the Industry.

Also, Land Rover has the Youngest average age of buyer at 48 years among all Brands including Mass Market Brands:

While Land Rover's average customer was just under 48 years old last year — the youngest average age among car brands reviewed
http://www.usatoday.com/story/money/cars/2014/10/04/24-7-wall-st-cars-oldest-buyers/16587437/
 

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XT5 won't be Cadillac's volume leader once it hits dealers. It'll be another G3 CTS type of sticker shock situation.

Hopefully you are wrong! It needs to be priced competitively with decent (not crazy margins) profit margins. Short term, higher sales is more important than slightly higher profit margins.

Nothing says success more than seeing a particular model of car everywhere you look. It exposes the general public to it, who in a lot of instances are going to be intriqued and think "Hmmm, must be really good, I'm seeing those everywhere"

Now if the media are also singing it's praises that helps as well. With a bit of luck those admiring glances are going to translate to increased showroom traffic and of course sales.
 

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Also, Land Rover has the Youngest average age of buyer at 48 years among all Brands including Mass Market Brands:

http://www.usatoday.com/story/money/cars/2014/10/04/24-7-wall-st-cars-oldest-buyers/16587437/
That's because older folks know better than to waste their money on the garbage that Land Rover builds...

I deal with a lot of wealthy (some ridiculously wealthy) auto collectors and enthusiasts. I've yet to meet one who has gone back and purchased a second Land Rover after their first experience. That is exactly why Cadillac has to take the Escalade further. In the lower models, there's plenty of competition, and the SRX, XT5 (or whatever it will be called next) and its proposed siblings may very well compete to attract future Discovery, LR2, & Evoque shoppers. But in the $85k, $100k+ realm, there's very little competition. Cadillac should invest in the "Escalade" brand. Take it to the extreme of modern luxury. They're leaving money on the table if they don't.
 

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That's because older folks know better than to waste their money on the garbage that Land Rover builds...

I deal with a lot of wealthy (some ridiculously wealthy) auto collectors and enthusiasts. I've yet to meet one who has gone back and purchased a second Land Rover after their first experience. That is exactly why Cadillac has to take the Escalade further. In the lower models, there's plenty of competition, and the SRX, XT5 (or whatever it will be called next) and its proposed siblings may very well compete to attract future Discovery, LR2, & Evoque shoppers. But in the $85k, $100k+ realm, there's very little competition. Cadillac should invest in the "Escalade" brand. Take it to the extreme of modern luxury. They're leaving money on the table if they don't.
Cadillac need a model above 'Escalade' called 'Escalation'..... :D





;)
 

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Cadillac is the wrong brand to counter Land Rover.

Cadillac should focus on brands it is already competing with Audi/BMW/Jaguar/Lexus/Lincoln/Mercedes Benz and Porsche.

Cadillac has never competed in the Off-Road market and it's styling does not lend it to them, Cadillac is better off developing a models to compete with vehicles like Macan/X3, Q3/Q5, X5/Cayenne and MB GL along with the upcoming Jag Crossovers.

GMC is a far better choice and can be offered in Europe using the existing Opel/Vauxhall dealer network for volume sales as well as Chinese Buick dealers. In the U.S. GMC is commonly offered alongside Cadillac anyway so GMC can focus on Off-Road Luxury and given past success will sell plenty at high margins while allowing Cadillac enough "Space" to counter it's competitor's CUV/Crossover/SUV models.

GMC's Denali line and other premium trims should be aimed at Land Rover starting with an all new CUV based off of the Mokka in order to have a RHD variant aimed at the Evoque, the next generation Terrain vs. new Discovery Sport an all new Envoy and Envoy XL to counter the Range Rover Sport and Range Rover.

GMC can add other new vehicles like the Jimmy and Safari aimed at "traditional" Land Rover models like the original Discovery where the GMC vehicles are based on a BOF platform with extreme off-road condition capabilities.

GMC can also revive the Holden Adventra as a large "Unibody" model if needed or use the Acadia.

GMC also has the existing Yukon and Yukon XL that need a new WB model between them with updated on and off-road capabilities including a "H2" variant.
 

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That's because older folks know better than to waste their money on the garbage that Land Rover builds...

I deal with a lot of wealthy (some ridiculously wealthy) auto collectors and enthusiasts. I've yet to meet one who has gone back and purchased a second Land Rover after their first experience. That is exactly why Cadillac has to take the Escalade further. In the lower models, there's plenty of competition, and the SRX, XT5 (or whatever it will be called next) and its proposed siblings may very well compete to attract future Discovery, LR2, & Evoque shoppers. But in the $85k, $100k+ realm, there's very little competition. Cadillac should invest in the "Escalade" brand. Take it to the extreme of modern luxury. They're leaving money on the table if they don't.
The old LR was a POS but the improvements over the last 6 years has made them very reliable, I've got a friend who's on his third LR not a single problem. I asked him why he won't consider GM or Ford, his answer surprised me. Cadillac and Lincoln does not impress me in anyway, when I purchased my X6 I considered all the makes, road tested everyone and the Escalade did not impress me either.
 

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Cadillac is the wrong brand to counter Land Rover.

Cadillac should focus on brands it is already competing with Audi/BMW/Jaguar/Lexus/Lincoln/Mercedes Benz and Porsche.

Cadillac has never competed in the Off-Road market and it's styling does not lend it to them, Cadillac is better off developing a models to compete with vehicles like Macan/X3, Q3/Q5, X5/Cayenne and MB GL along with the upcoming Jag Crossovers.

GMC is a far better choice and can be offered in Europe using the existing Opel/Vauxhall dealer network for volume sales as well as Chinese Buick dealers. In the U.S. GMC is commonly offered alongside Cadillac anyway so GMC can focus on Off-Road Luxury and given past success will sell plenty at high margins while allowing Cadillac enough "Space" to counter it's competitor's CUV/Crossover/SUV models.

GMC's Denali line and other premium trims should be aimed at Land Rover starting with an all new CUV based off of the Mokka in order to have a RHD variant aimed at the Evoque, the next generation Terrain vs. new Discovery Sport an all new Envoy and Envoy XL to counter the Range Rover Sport and Range Rover.

GMC can add other new vehicles like the Jimmy and Safari aimed at "traditional" Land Rover models like the original Discovery where the GMC vehicles are based on a BOF platform with extreme off-road condition capabilities.

GMC can also revive the Holden Adventra as a large "Unibody" model if needed or use the Acadia.

GMC also has the existing Yukon and Yukon XL that need a new WB model between them with updated on and off-road capabilities including a "H2" variant.
Who was suggesting that Cadillac should go after Land Rover? I think some of us were commenting on the 'growing pains' parallels between JLR (especially Jaguar and Cadillac) and Cadillac as they expand their offerings.

Both Marques are trying to fill holes in their product portfolio (Land Rover is further along in that regard) and once all the pieces are in place sales should rise accordingly. I'm of the opinion that unless the luxury end of the car market keeps expanding a lot of those increased sales will undoubtedly come at the expense of the competition.

Cadillac needs a smaller CUV/SUV below the XT5 to go head to head with the BMW X1 and X3. It needs to be bigger than the Buick Encore which is a little too diminutive to base a Cadillac on. I'd love to see the breakdown of the X1 and X3 sales, as it seems to me that BMW could have one vehicle rather than two, covering this end of the market. At least the Mercedes GLA and GLK are fundamentally different vehicles.
 

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Cadillac is the wrong brand to counter Land Rover.

Cadillac should focus on brands it is already competing with Audi/BMW/Jaguar/Lexus/Lincoln/Mercedes Benz and Porsche.

Cadillac has never competed in the Off-Road market and it's styling does not lend it to them, Cadillac is better off developing a models to compete with vehicles like Macan/X3, Q3/Q5, X5/Cayenne and MB GL along with the upcoming Jag Crossovers.

GMC is a far better choice and can be offered in Europe using the existing Opel/Vauxhall dealer network for volume sales as well as Chinese Buick dealers. In the U.S. GMC is commonly offered alongside Cadillac anyway so GMC can focus on Off-Road Luxury and given past success will sell plenty at high margins while allowing Cadillac enough "Space" to counter it's competitor's CUV/Crossover/SUV models.

GMC's Denali line and other premium trims should be aimed at Land Rover starting with an all new CUV based off of the Mokka in order to have a RHD variant aimed at the Evoque, the next generation Terrain vs. new Discovery Sport an all new Envoy and Envoy XL to counter the Range Rover Sport and Range Rover.

GMC can add other new vehicles like the Jimmy and Safari aimed at "traditional" Land Rover models like the original Discovery where the GMC vehicles are based on a BOF platform with extreme off-road condition capabilities.

GMC can also revive the Holden Adventra as a large "Unibody" model if needed or use the Acadia.

GMC also has the existing Yukon and Yukon XL that need a new WB model between them with updated on and off-road capabilities including a "H2" variant.
Forget BOF if GM wants to compete with Range Rover - at that level of luxury, BOF is just not refined enough on-road - in fact forget BOF altogether for Europe, that's for trucks not luxury or premium passenger SUVs.
 

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Cadillac would do well to follow and possibly emulate the sucess of the Jaguar Land Rover Group. They seem to be executing perfectly on-par.
Ummm... The key to JLR's success was to reestablish itself as a premiere luxury brand and focus on that aspect first with flagship cars and SUVs. Following that was to re-establish a core mid-tier product line. At nearly the same time, JLR established image vehicles that would strengthen the premium image, while prepping entry level vehicles in the pipeline.

This started around 2005-ish and continued on under Tata, where they better funded the company and allowed more of a free reign.
Just wait for the XE to start tearing up the sales charts, especially now that the XJ and XF and F-Types are firmly established.

It's taken more than a decade to get JLR to this spot. It will take just as long for Cadillac to reestablish itself. But it *NEEDS* the Omega out... yesterday.
 

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JLR have a lot of new stuff coming down the pike and so does Cadillac. Jaguar and Cadillac (LR to a lesser extent) are constrained by the amount of models they offer, but once they have expanded their product portfolio the situation should change.

For Cadillac getting the new XT5 to market will (basically their volume leader) help, and for Jaguar obviously the XE in early 2016 is for all intents and purposes essentially the Cavalry coming over the hill to save the day. As long as the Discovery Sport is not priced ridiculously high it's probably going to sell in greater numbers than the meh LR2.

Imo The LR Discovery Sport looks better than all of it's contemporaries. It looks Excellent in more muted conservative colors, but also looks fantastic in a wacky shade of orange.






Hey look, an Explorer.
 

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Ummm... The key to JLR's success was to reestablish itself as a premiere luxury brand and focus on that aspect first with flagship cars and SUVs. Following that was to re-establish a core mid-tier product line. At nearly the same time, JLR established image vehicles that would strengthen the premium image, while prepping entry level vehicles in the pipeline.

This started around 2005-ish and continued on under Tata, where they better funded the company and allowed more of a free reign.
Just wait for the XE to start tearing up the sales charts, especially now that the XJ and XF and F-Types are firmly established.

It's taken more than a decade to get JLR to this spot. It will take just as long for Cadillac to reestablish itself. But it *NEEDS* the Omega out... yesterday.
The XE might sell well directly after launch, but I doubt it will be a massive hit. As seen by the ATS, buyers in the class seem to buy their compact luxury sedans partially because of dramatic design. The XE looks like a shrunk XF. Quite honestly, I'd be hard pressed to distinguish one from another on the streets.
 

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The XE might sell well directly after launch, but I doubt it will be a massive hit. As seen by the ATS, buyers in the class seem to buy their compact luxury sedans partially because of dramatic design. The XE looks like a shrunk XF. Quite honestly, I'd be hard pressed to distinguish one from another on the streets.
You need to watch a few videos on youtube, The XE especially from the front is going to strike a chord with buyers in this segment. The front is the most striking and good looking in it's class.That is the view that will sell this car. The rest is very conservative with the rear being very Audi A5, but again that isn't a bad thing. Overall the design is very palatable to a broad section of buyers. Jag was never going to make something edgy and polarizing at this stage in their renaissance. That would be commercial suicide.

Apart from size, the average person wouldn't know the Audi A3 from an Audi A4/A6 or an A8 and it hasn't hurt A3 sales. The Audi outsells the CLA by about two to one I believe, probably due to it being reasonably handsome, beautifully built and inoffensive. The CLA is edgy (okay Ugly) and is definitely an acquired taste due to it's strange proportions, especially in the rear. The Audi wins here.

Check the videos out and tell me this won't sell here in the U.S.

Oh and before you accuse me showing the top model here is a video of a lower spec and it will still scream "Buy Me" to the average buyer.

one more for you.

 
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