Jaguar Land Rover (JLR) CEO Adrian Mardell recently unveiled a major shake-up in the company's strategy, discontinuing several low-profit Jaguar models as the brand transitions to an all-electric future.
Models facing the axe include the I-Pace EV, E-Pace, F-Type, XE and XF.
F-Pace survives... for now
The F-Pace, Jaguar's best-selling model, will remain in production as the rest of the lineup is phased out. It is unclear how long the F-Pace will remain available, but it is expected to be offered alongside Jaguar's upcoming electric vehicles (EVs) for at least a short period.
"We are eliminating five products, all lower value. None of those are vehicles on which we made any money, so we are replacing them with new vehicles on newly designed architectures," Mardell explained to investors.
Despite JLR's recent financial success, with an annual profit of £2.2 billion (around NZ$4.7 billion) before taxes, this success has been largely driven by Land Rover models, particularly the Defender, Range Rover and Range Rover Sport. These three models reportedly account for up to 85% of JLR's value.
A new era for Jaguar
Jaguar's revitalisation plan includes the launch of several EVs, beginning with a grand tourer concept expected to be unveiled later this year. This high-end model is anticipated to compete with brands like Tesla, Porsche and Bentley.
In addition to the grand tourer, Jaguar plans to introduce three more EV models based on the Jaguar Electrified Architecture (JEA) platform. However, before these models arrive, JLR will launch the fully electric Range Rover, scheduled to be revealed next year.
The demise of several Jaguar models marks a significant shift in the brand's direction, focusing on an all-electric future and prioritising high-value models.
As Mardell stated, "Our business model is not going to be succession of increasing variable marketing and fixed marketing expenses to try and keep our plants full. That was a mass premium model. Our model is very, very different, and there is huge opportunity in front of us to excel."