Jaguar CANCEL production of gas & diesel cars to go EV ONLY

The Electric Viking
5 Mar 202405:34

TLDRJaguar, a British car company owned by Tata, is set to cease production of internal combustion engine vehicles by June 2024, marking a significant shift towards electric vehicles (EVs). The company plans to transition its Castle Bromwich factory to produce body panels for EVs, while other models will continue production at different locations. Jaguar aims to rebrand itself as a luxury EV manufacturer, with plans to launch three new models, including a four-door model to compete with Porsche. Despite concerns about the brand's loyalty and market position, Jaguar is optimistic about its future in the luxury EV segment, expecting sales to drop but with a focus on higher margins from premium products.

Takeaways

  • 🚗 Jaguar is set to terminate production of all internal combustion engine vehicles in June 2024.
  • 🔧 Their factory in Castle Bromwich will transition to a body panel stamping factory for electric cars.
  • 🇬🇧 Jaguar, a British car company, is owned by the Indian parent company Tata Motors.
  • 📉 Jaguar's sales have been declining, and they are not far from bankruptcy.
  • 🚗 The F-PACE SUV is manufactured at a separate factory in Solihull, while the E-PACE SUV is made in Austria.
  • 🛠️ The electric I-PACE will be the last vehicle in the current range to end production, with manufacturing set to continue until early 2025.
  • 🚀 Jaguar plans to launch three new electric vehicles based on a luxurious new architecture, starting with a four-door model to compete with Porsche.
  • 💰 The new four-door Jaguar EV is expected to have a high starting price of over $130,000.
  • 📉 Jaguar anticipates a drop in sales to around 50,000 cars per year but aims for higher margins with more premium products.
  • 🤔 There is uncertainty about whether Jaguar can maintain brand loyalty and attract customers willing to pay high prices for their electric cars.
  • 🌐 The shift to electric vehicles is a strategic move by Jaguar to adapt to changing market demands and consumer preferences.

Q & A

  • When will Jaguar cease production of internal combustion engine vehicles?

    -Jaguar will end production of petrol, diesel, and gasoline-powered cars in June of 2024.

  • What will Jaguar's factory in Castle Bromwich transition to after stopping ICE vehicle production?

    -The factory will transition to becoming a body panel stamping factory for electric cars.

  • Which Jaguar models are currently manufactured at Castle Bromwich?

    -Castle Bromwich manufactures the F-Type Coupe and convertible, the XF sedan and wagon, and the XE sedan.

  • Where is the Jaguar F-PACE SUV produced?

    -The F-PACE SUV is produced at Jaguar's factory in Solihull, about 12 km down the road from Castle Bromwich.

  • What is the production timeline for the electric I-PACE?

    -The electric I-PACE will continue production until early 2025 when it will be replaced by a new model.

  • How does Jaguar plan to transition to a new generation of luxury electric vehicles?

    -Jaguar plans to launch three new cars based on their new JEA electric architecture, with the first being a four-door model designed to compete with the Porsche Taycan.

  • What are the expected specifications of the new four-door Jaguar electric model?

    -The new model is expected to have a dual motor all-wheel drive setup with 430 kW (about 600 horsepower), a driving range of 700 km (over 400 miles), and a starting price in excess of $130,000.

  • What is the current sales volume for Jaguar vehicles?

    -Last year, Jaguar sold 64,841 vehicles worldwide, and in Australia, they sold 581 cars.

  • How does Jaguar's sales volume compare to its sister company, Land Rover?

    -Land Rover sold 356,000 vehicles across their Defender, Range Rover, and Discovery sub-brands.

  • What is Jaguar's strategy for the future in terms of sales and market position?

    -Jaguar aims to shift to a more premium market space, similar to Bentley and Rolls-Royce, and expects sales to drop to around 50,000 car sales per year, focusing on higher margin, luxury electric vehicles.

  • What is the main challenge Jaguar faces in transitioning to electric vehicles?

    -The main challenge is whether consumers will be willing to pay potentially higher prices for Jaguar electric cars when there are other brands offering electric vehicles at lower prices.

Outlines

00:00

🚗 Jaguar's Transition to Electric Vehicles

Jaguar has announced that it will cease production of internal combustion engine vehicles in two months, focusing solely on electric cars. This move is part of Jaguar's strategy to meet the growing demand for electric vehicles and to reposition itself as a luxury electric car brand, similar to Bentley. The company plans to launch three new electric models based on their JEA electric architecture, with the first model, a four-door car, expected to compete with Porsche's Taycan. Jaguar's sales have been declining, and they anticipate a drop to around 50,000 car sales per year, but aim to compensate with higher-margin luxury electric vehicles.

05:00

🤔 The Future of Luxury Car Sales

The script discusses the potential challenges Jaguar may face as it transitions from traditional luxury cars to electric vehicles. It raises questions about whether consumers will be willing to pay a premium for Jaguar's electric cars when there are more affordable options available from other brands. The narrative also touches on the broader trend of declining sales for internal combustion engine vehicles and the shift towards electric vehicles (EVs) as the preferred choice for luxury car buyers.

Mindmap

Keywords

💡Jaguar

Jaguar is a British car manufacturer known for its luxury vehicles. In the context of the video, Jaguar is making a significant shift in its business strategy by ending the production of internal combustion engine vehicles and focusing on electric cars. This move is part of Jaguar's attempt to rebrand itself as a luxury electric vehicle (EV) manufacturer, aiming to compete with brands like Porsche and Bentley in the electric vehicle market.

💡Internal Combustion Engine (ICE) Vehicles

These are vehicles that use internal combustion engines to generate power, typically burning fossil fuels like gasoline or diesel. The video discusses Jaguar's decision to terminate the production of these types of vehicles, indicating a global trend towards more environmentally friendly transportation options. Jaguar's shift away from ICE vehicles is a response to declining demand and the growing market for electric cars.

💡Electric Cars

Electric cars, or EVs, are vehicles that run on electric motors powered by batteries instead of combustion engines. The video highlights Jaguar's commitment to producing only electric cars, showcasing their new electric vehicle architecture and upcoming models. This transition is part of Jaguar's strategy to become a leader in the luxury electric vehicle segment.

💡Production Termination

Refers to the cessation of manufacturing a particular product. In the video, Jaguar has announced the termination of production for all ICE vehicles, marking a significant change in their manufacturing operations. This decision is a strategic move to align with the global shift towards sustainable transportation solutions.

💡Luxury Electric Vehicles (EVs)

These are electric vehicles that offer a high level of comfort, advanced features, and premium branding, often at a higher price point. The video discusses Jaguar's intention to reposition itself as a luxury EV brand, similar to Bentley, and launch new models to cater to this market segment. Jaguar's new electric architecture is designed to compete with established luxury EV brands.

💡Transition

In the context of the video, transition refers to Jaguar's shift from traditional vehicle manufacturing to focusing on electric vehicles. This includes not only the production of new models but also the transformation of existing facilities, such as the conversion of a body panel stamping factory for electric cars. The transition signifies Jaguar's adaptation to the changing automotive industry and consumer preferences.

💡Market Strategy

This term relates to the business approach and planning that companies use to achieve their goals in the marketplace. The video outlines Jaguar's market strategy to pivot from a niche car brand to a premium electric vehicle manufacturer. This strategy involves ending the production of ICE vehicles, launching new electric models, and repositioning the brand to attract a different customer base.

💡Sales Projections

Sales projections are estimates of future sales volumes. The video mentions Jaguar's expectation of a drop in sales to around 50,000 cars per year, with a focus on higher-margin, premium products. This reflects the company's strategic decision to prioritize profitability over volume, aiming for a smaller but more lucrative customer segment.

💡Brand Loyalty

Brand loyalty refers to the tendency of customers to continue purchasing products from a particular brand over time. The video raises a question about whether Jaguar's customer base will remain loyal to the brand as it transitions to electric vehicles, especially when considering the higher price points and competition from other established electric car brands.

💡Rebranding

Rebranding is the process of changing the appearance and identity of a brand to improve its image, attract new customers, or reposition itself in the market. In the video, Jaguar's rebranding is evident in its move away from ICE vehicles and towards luxury electric cars, with the goal of transforming its image into a more premium and sustainable brand, akin to Bentley or Rolls-Royce.

💡Sustainability

Sustainability in the automotive industry refers to the development and use of vehicles that have a reduced environmental impact. The video emphasizes Jaguar's commitment to sustainability by ending the production of ICE vehicles and focusing on electric cars, which are considered more environmentally friendly due to their lower emissions and reliance on renewable energy sources.

Highlights

Jaguar announces termination of internal combustion engine vehicle production in two months.

Jaguar to focus solely on electric cars, marking a significant shift in strategy.

Production of petrol, diesel, and gasoline-powered cars will end in June 2024.

Jaguar's factory in Castle Bromwich to transition to a body panel stamping factory for electric cars.

Jaguar's F-Type Coupe, convertible, XC sedan, and XF sedan will cease production.

The F-PACE SUV is manufactured at a separate factory in Solihull, UK.

The E-PACE SUV is manufactured by Magna Steyr in Austria.

The electric I-PACE will be the last vehicle in the current range to end production.

Jaguar's North America head, Joe Eart, confirms a continuous supply of vehicles until new electric models are available.

Jaguar aims to transition to a luxury electric vehicle brand, similar to Bentley.

Jaguar plans to launch three new electric cars based on a luxurious JEA electric architecture.

The first model, a four-door designed to compete with the Porsche Taycan, is scheduled for unveiling this year and sale in 2025.

The new Jaguar model is expected to have dual motor all-wheel drive, 600 horsepower, and a 700 km range.

Jaguar's sales are small, and the company is not far from bankruptcy.

Jaguar's sales in Australia were only 581 cars in the last year.

Jaguar anticipates a drop in sales to around 50,000 cars per year but aims for higher margins with premium products.

Jaguar's brand loyalty is questioned, especially when competing with other electric car brands.

Jaguar's strategy reflects a broader trend in the automotive industry shifting away from internal combustion engines.

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