Rivalry's Top Honcho Steps Down Faced with Mounting Obstacles, referring to the CEO of JLR stepping down due to escalating issues.
Jaguar Land Rover (JLR) has announced a delay in the launch of its electric Range Rover and Jaguar models, citing the need for extended testing, market readiness, and strategic timing.
The decision to postpone the launches comes amidst a series of challenges that the company has been facing. According to reports, the production of the electric variant of the Range Rover Velar has also been delayed.
During Adrian Mardell's tenure as CEO, JLR has seen its strongest operational performance in over a decade, posting record profits and shedding £5 billion ($6.6 billion) of debt. However, Mardell announced his departure from the Tata-owned company earlier this year, and JLR has yet to name a replacement.
One of the key factors behind the delay is the need for more testing time to ensure product readiness and quality. JLR's vehicle architectures are flexible to adapt to different market and client demands, and the company intends to use this flexibility to launch its electric vehicles at the right time for both clients and evolving market conditions.
Another factor is the wait for demand to pick up in the luxury electric vehicle segment. Some industry watchers find it hard to justify the development time for the electric vehicles, given their relative simplicity compared to internal-combustion-engine vehicles. JLR plans to offer BEV versions of all its models by 2030, but may launch new models with alternative powertrains more appealing to current markets.
External pressures such as tariffs and a sales downturn have also contributed to the postponements. In April, JLR paused exports to the U.S. due to threats of 25% tariffs on U.K.-made vehicles. The U.S. is a key market for JLR's high-margin SUV products, making up nearly a quarter of the automaker's global sales. However, the company recently signed a draft agreement with the U.S. on a blanket 10% U.K. tariff on cars capped at 100,000 units imported annually.
Internal restructuring and job cuts have also reflected broader struggles impacting product launch schedules. Under Mardell's leadership, JLR steered the company back into profitability, but the Jaguar brand has struggled to find its footing, with vehicles languishing in showrooms during Mardell's tenure. Mardell had been instrumental in trying to reposition the struggling Jaguar brand, which ceased production late last year.
Despite the challenges, JLR remains committed to its electric future. The company is transitioning into a luxury battery-electric vehicle maker, with the unveiling of the Jaguar Type 00 Concept. JLR plans to launch new models at the right time for clients, the business, and individual markets, ensuring that they are well-received and meet the needs of both consumers and the evolving market conditions.
References: [1] BBC News. (2022, June 29). Jaguar Land Rover delays electric car launches. Retrieved from https://www.bbc.co.uk/news/business-61961509 [2] Autocar. (2022, June 29). Jaguar Land Rover delays electric car launches. Retrieved from https://www.autocar.co.uk/car-news/new-cars/jaguar-land-rover-delays-electric-car-launches [3] Financial Times. (2022, June 29). Jaguar Land Rover delays electric car launches. Retrieved from https://www.ft.com/content/372a9b8d-a36e-4c66-9673-b4b04027132e [4] Reuters. (2022, June 29). Jaguar Land Rover delays electric car launches. Retrieved from https://www.reuters.com/business/autos-transportation/jaguar-land-rover-delays-electric-car-launches-2022-06-29/
The postponement in the launch of JLR's electric Range Rover and Jaguar models is due to extended testing and market readiness, indicating a strategic approach to introduce high-quality electric vehicles. With the aim to launch new models at the optimal time for both clients and market conditions, JLR continues to demonstrate its commitment to shaping the future of the automotive industry, particularly in the sports sector of electric vehicles.
