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Why Jaguar And Land Rover Face Uncertain Futures

Why Jaguar And Land Rover Face Uncertain Futures

Jaguar Land Rover are two iconic
brands in the automotive world. Rich with heritage an excellent style
and performance but each have also suffered Rocky histories. And for years each were passed between
new owners in Europe and the U.S. including BMW and Ford. With BMW owning Land Rover and
Ford owning Jaguar in the 80s. Then just when they were on the
verge of bankruptcy the two thoroughly British sister brands were bought
by the Indian, Tata Motors. Part of the vast Tata Group
empire that makes up everything from software to food products. When Tata acquired them in 2008, both
Jaguar Land Rover had their fair share of financial struggles and
had fought to overcome reputations for unreliability. If you were going to say drive
across the country in a given vehicle and hope that everything went well. Pre-Tata, Jaguar Land Rover would have been
one of the last brands I would have picked to do that in. I just didn’t have
faith in their vehicles. Worse, Tata had bought these brands
and perhaps one the worst possible times in recent history. Right on the cusp
of the financial crisis. However in the years that followed,
Tata Motors did something many owners had failed to do
before turning them into moneymakers. But things are getting gloomy
for jail are once again. Just as these two legends have
finally found some footing a drastically shrinking market in China for
JLR and trouble in Europe are threatening them once again. The S&P lowered the credit ratings of
both JLR and Tata Motors in early 2019 and they are
now deep in junk status. The question now? Will Tata Motors be able to turn around
JLR once more or is looking to cut its losses? Jaguar was founded in 1922 as the
Swallows Side Car company by William Lyons, a motorcycle
enthusiast and engineer. Back then the company initially made
side cars, those little pods that sit on the side of motorcycles. But in 1935, Lyons built the S.S. Jaguar. It was the first car
to bear the Jaguar name. Over the years the company has
made sleek aerodynamic sports cars and became known for racing. Number 20 is the winning Jaguar
which eventually finish nine laps ahead of the next car. Having traveled at an
average speed of 93.5 miles an hour. Perhaps the most famous example was
the E-type which Jaguar started making in the 1960s. Land Rover had an entirely
different history making off-road vehicles used by the military and bucolic
customers in Europe and around the world starting in 1947. Over the years Land Rover developed
a reputation for making rugged trucks an SUV with
a distinct British touch. Models such as the defender,
developed reputations for ruggedness and capability rivaled perhaps only by few
vehicles such as the Jeep Wrangler. Though also extremely capable, the
brand’s Range Rover was perhaps what anticipated the trend in
high end luxury sports utility vehicles. And has even been the target
of scorn for its popularity with well-heeled buyers who never drive
the thing off pavement. The two companies were rejoined under
one roof beginning with Ford buying Jaguar in the late 1980s. But in terms of fully exploiting the
brand name of strength that we were building up in the company there’s
no question we should be able to do a better job with the
resources that Ford Motor Company will make available. And then in 2000,
Ford bought Land Rover. Ford under went its own
troubles in the following years. It had to sell off many of
the premium names they had acquired including Jaguar and Land Rover. And another high-end British
automaker Aston Martin. Just eight years after Ford bought Land
Rover, Ford sold it and Jaguar to Tata Motors for about 2.7 billion dollars. Tata Motors did exactly what many fans
and enthusiasts say is the best thing an owner can do for
car companies as legendary as these. And it paid off. Jaguar Land Rover didn’t really start
to become a powerful and competitive group of brands in the
modern automotive world until Tata took over. And when Tata inherited both brands
and invested the kind of money that they had long needed invested. That’s when you saw everything from
the design to the engineering to most importantly the quality, reach a
level that made them comparable to things like a BMW or
an Audi or a Mercedes. Up until 2017, it looked like
Tata Motors had engineered a lasting turnaround for the
legendary brands. But things took a turn
for the worse in 2018. JLR posting a loss of about 4.3 billion dollars in
fiscal year 2019. Its biggest loss in
the last 10 years. That loss resulted in a large part
from a nearly 4 billion dollar one time write down. However even taking that into account
the company still would have lost money. The company said in January of 2019
that it’s cutting 4,500 jobs about 10 percent of its workforce. Jaguar Land Rovers troubles have
hurt parent company Tata motors. JLR’s recent troubles have been one
of the factors contributing to recent declines. In April 2019, reports surfaced that
Tata Motors is considering a sale of the brands to
French car manufacturer PSA. Reports that Tata Motors denies. Out of the two brands
Land Rovers and the strongest. But it has struggled as well. A big part of the problem, Jaguar
Land Rover sales in China fell about 26 percent in May and
46 percent in April. In March 2019, the company said sales
in China had fallen 34 percent for the fiscal 2018 to 2019 year. It is also facing
headwinds in Europe. Brexit threatens to raise costs. More than 40 percent materials used
travels from the European Union to the United Kingdom. And it must contend with
increasingly stringent emissions laws in Europe following the so-called diesel
gate scandal that rocked Volkswagen and other companies
in the automotive world. In a comment to CNBC, Jaguar
CEO Ralph space said that: But the U.S. may hold the keys
for JLR’s recovery. Land Rover’s strongest markets in North
America where it’s in the fortunate position of being a premium
sports utility maker in a time where U.S. customers are hungry for SUVs. JLR sold about 10 times as many
SUV as the United States as did traditional passenger cars in 2018. Despite the fact that jaguars portfolio
is still heavy on sedans and sports cars. But Jaguar is leaning
into utility vehicles too. It sold almost twice as many SUVs
in 2018 as its famous sports cars and sedans. And unlike brands such as Porsche,
it’s brushing aside the usual criticism that moving towards utility
vehicles is straying away from its race car roots. The Jaguar Land Rover
CEO also said: Jaguar is also stepping forcefully into
electric cars with its I-Pace crossover which has been
praised by critics. The car swept the world car awards
at the New York International Auto Show in 2019. But North America’s continued appetite for
its vehicles might not be enough to engineer a full
recovery for the two brands. Industry analysts worry about a larger
downturn in new car sales is looming. The easier path is just sell
Land Rovers people know them by Land Rovers. But they are taking a longer path
by of keeping both Jaguar Land Rover together because there are a couple
of restrictions which are coming in terms of fleet norms and all
those things which they need to meet and hence they can work out. In the meantime Tata Motors has
fended off reports that it’s considering selling the division
to PSA group,. The very same French automaker that
bought Opel and Vauxhall car brands from General Motors
and turn them around. Jaguar Land Rover have history
and heritage on their side. But the global automotive industry
is changing rapidly and it’s unknown how much of that history
and heritage will count in a business increasingly obsessed
with the future.

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100 thoughts on “Why Jaguar And Land Rover Face Uncertain Futures

  1. I live in Russia for last 2 years and in which city I'm living isn't that big but I can see so many land rover cars over there every day. Whenever I hear about JLR sales dropped news,it's impossible to believe.

  2. I think there is a mistake in this video, 223rd second of this video shows a text that 2.7 billion dollar in 2019. I think its 2009.

  3. i don't know why they are speaking highly about BMW and Mercedes quality (in america) and how jaguar and land rover has the same quality, the reason jaguar and land rover is going downhill is because people realise they are really badly built

  4. There's lots of potential I think TATA should seriously consider outsourcing to India for lower cost and higher profit margins more SUVs will draw more people and maybe perhaps make their cars more easy to work on compared to other luxury brands.

  5. Brands are mere labels and can be successfully resurrected long after the original company shut down. Triumph motorcycles is a fine, successful example.

  6. Believe me if TATA sales JLR Line up then there is no company that can hold the JLR line up as the TATA grp did. TATA rebranded the whole JLR line up..

  7. The 90's Land Rovers were reliable on a journey because you could just carry all the spare parts in the back or the roof. Diff/gearbox always breaking…
    And today people still keep those 90's land rovers but they spend more time in the mechanic then on the owner hand.

  8. They are both junk vehicles neither reliable nor practical much like lots of vehicles made in america.

  9. Before watching this I thought the sale to Tata motors was a joke! But now I think it is the best thing that has ever happened to this company and I hope if the do sell it to psa or if they choose to keep it I hope it will recover and succeed far in the future!

  10. My parents has purchased Land Rover all new discovery SE model in India by end of year 2018 .I had constantly appraising to customer care globle and warli office India regarding cooling problems in middle and last row of seven seater vehicle.This seem to be manufactured defect as because when we compared with HSE model LandRover provided ducts at top and bottom of both middle and last two seats,where as these ducts has not been provided in earlier SE model,with the results cooling effected,we are not driving this prestigious vehicle on long drives.In India no one is ready to solve problems.Kindly help in providing relief.

  11. 1998 ford to tata – “Why did enter in passenger car business when you not knowing of. It will be huge favour if we buy this business from you”

    Ratan tata felt insulted & didn’t sell it

    10 years later
    Ford to tata- “you’re doing huge favour by buying dying company jaguar from us”
    10 years later

    2018-Increased global sales 146 percent, from 252,036 vehicles in 2008 to 621,109 last year.

  12. European union wants to so call go green, but are they taking into account employment? The industry is driven by the consumer. So high unemployment will be the result and with things like Brexit and globalization it is happening now. Everybody can't afford a hybrid or electric vehicle even if they get cheaper, size is a compromise. Then again in the u.s. since less people are getting married…maybe that wont be a problem.

  13. All this is is the obvious result of a rapid swing by governments around the developed world towards low or zero emission vehicles and this has caught the likes Nissan and Honda asleep & JRL has also been slow to respond.

  14. Sad, I grew up with Land Rover my father was a general manager at a dealership. They ruined Land Rover’s name, made it into a luxury soccer-mom’s go to car. After Evoque came it ruined the brand it’s horrible.

  15. tata group is best company in the world…if u dont able to buy jag or landrover buy tata motors cars based on landrover platform if available in your country

  16. Again LR doesn’t want to make cars that will sell namely a Defender that has a price comparison with the Jeep Wrangler

  17. EVs are gobbling up market share in an ever increasing pace especially in china… i-pace is too expensive and range is low for the price tag

  18. British failed everything because they don't care enough for mainstream people. Their names don't mean much now days. They should only focus on small numbers of snobs and don't take any risk. They lack skills to compete in sectors they are aiming in.

  19. Jaguar and Land Rover – Just managed by inefficient and uneffective management !!!!! You can't just use cost cutting methods for foreign markets!!!

  20. Can we get a non-East coast mush mouth speaker to narrate this please? Also, comparing a Defender to a Jeep Wrangler? These issues make these videos lack credibility.

  21. Freelander 2 had a known rear diff issue on new cars sold which they declined to admit and forced customers to a fix for. Simple design fault on the bearing. They've now just changed the new freelander 3 name to discovery sport. Total POS car and brand.

  22. actually…………..up untill 2006 (With the 4.2 supercharged and 4.4 jaguar NOT bmw engines) they were a bit more reliable than the BMW powered engine ones….and if u think that the indian build quality by tata is good? u r wrong

  23. No one bought either because they were expensive and ultra unreliable. Sold to India company put the nails on the coffin.

  24. I bet Tata only bought them to run the companies bankrup and introduce Tata to the U.K. (and make them decent cars on top of that)

  25. I bought a 2017 Jaguar XF and initially loved it. After about 30k miles literally everything began to malfunction, I've spent thousands just keeping it running. I got a pre owned Genisis afterwards and it's been bulletproof.

  26. Jaguar and Land Rover is just nice looking junk that is proven to be very unreliable and expensive to repair. Add to that does not hold its value due to its unreliable crapy quality!! Who or how many people are really willing to buy that?!.. to that Indian company a message to you. stop cheaping out and build decent business for your self!!!

  27. LR RR Velar it's almost 50k€ here in italy. This for 2.0L 132kw diesel engine.
    I bought an apartment for 65k€, in a small city in north of italy

  28. Fact: If Ratan Tata didn't donate some 66% of his profits annually to charity, he would be the richest man on the planet by far. Indian domination.

  29. What people don't know they lost a massive order from China before Christmas, and that was because of quality checks JLR we're warned 7mnths before they lost the big order, also they had 2) 3weeks stood do nothing because somebody hadn't ordered enough seats for the range rover I know because I know someone who works in JLR what happens behind closed doors nobody knows unless you work there they make to many mistakes that's the problem and tatta was the worst thing to ever happen in JLRS history they do not care about the brand and that is SAD

  30. Tatas are huge in Asia… But their automobile section is facing a hit since last decade… Their golden Apple products like Industrial trucks and moving vehicles aren't having enough market that they could brag about in share markets… The only working thing for the is the JLR… which won't survive if they don't adapt… I only hope Tata comes out of this issue because they literally are carrying a large section of Indian economy

  31. Because when TATA makes Electric cars & has Fuel cell tech. They are still trying to sell a fossil fuel car which no one is intrested to buy when they can buy EV's or H2fuell cell cars for the price of there cars.
    TATA/JLR thinks ppl buy car for present.
    Reality is People Buy cars thinking of Future.
    If u dont make EV's and H2fuelcell cars.
    Just shut the production and Hit to R&D to design Fuelcell cars & EV's.
    Then come produce only those Automobiles people will buy & will gain profits.

  32. Tata should just dump Jaguar and keep LR. LR will always sell on the strength of the brand name alone. Jaguars lost their magic ever since Ford acquired them.

  33. As they say, if you want to buy a Jaguar, you need to buy 2: One to drive, and the other to drive when the first one is in the shop.

  34. My diesel XE has been great. Great to drive, economical and it needs to be serviced every 34,000kms with the service amounting to about USD$500.

  35. My uncle had a 2017 jaguar XJ….so my advice is that these brands are good for first 20000 km then these things start to malfunction….It had to be repaired and maintained for more than a fortune….so finally my uncle sold it as a loss and now he has a Mercedes c 200…still no problem…merc is all ready 25000 km

  36. Around the US – you can't blink twice on the road without seeing a Land/Range Rover. My wife wants an Evoque… sigh.

  37. Maybe it’s because the newer Land Rover SUVS all look the same. The new discovery isn’t helping either. Very ugly

  38. I absolutely adore the raw passion, originality, power and elegance of Jaguar and Range Rovers… I dream of owning them.
    MIND YOU: I dream. Cos I can afford them, but the sheer inconvenience of having almost everything go wrong isn't my type of car.
    I really wonder what kind of headache Range Rover owners go through whenever I see them. I pity their situation….

  39. Somewhere there is an Indian Mogul or Raja, long deceased, in that Hindu, Buddhist, or Muslim paradise laughing his *ss off. What goes around, comes around…

  40. In kerala flood..people posted on facebook asking they need vehicle which can carry food for water clotted area..they send Rangerover worth 2 crore rupees..come on guys who does this..?

  41. My dad owns 3 jaguars and 2 land rovers and they are better than any bmw, Audi and Mercedes that my dad has bought

  42. Im not sure about jlr uncertain future but im sure about cnbc certain future backed by oil companies and manipulated news😂

  43. Tata r the worst company the didn't know how to make stylish cars , sorry but Indian r corrupt people when ever they see advantage or more money they will go there, my experience

  44. This cars are not dependable and not cheap either that’s why they’re going down hill.. they should make something reliable and cheaper for the new generation. Just look at the Kia and Hyundai cars the kids and adults love it because affordable and nice cars under thirty thousand dollars of course people will buying them and with ten years warranties Hyundai and KIA are best to buy

  45. As a jag enthusiast I say kill jag there isn’t anything left of the marquee that us jag enthusiasts know. Keep Land Rover alive but get Toyota in there to fix reliability

  46. NA doesn't need any premium SUV's. That's where Land Rover went wrong. If LR goes back to its roots and give us vehicles that we can actually take off pavement then you'll see a real change. Look at the truck industry and see where they're heading (Raptor, Rebel, ZR2), all those models are catering to where the most demand is. LR played the wrong cards last decade.

  47. Dont put all the blame on tata motor, this guys offered theyr suport to jaguar and land Rover, but how they are built, is making the product to go down in salles.
    Quality of the product is not in the same sequence with the price.
    So the problem is not them is the one that manage the company, from the big one to the small workers, (clock in, clock out) 👍
    The aspect of the car is better then other SUV, but like i said is not realible car for The price, and expensive to maintain.

  48. Time to follow the Japanese. Make cheaper cars for middle and lower-class people. Even cheaper cars nowadays have better quality equal as Jaguar and Land Rover.

  49. Here in East EU VW cars have best sales rate no matter their low quality, why, because they have the most wide services and parts are easy to find and cheapest to buy.So I think lower quality is not that of a big issue if you have a mechanic in every street corner that can fix your car. But if you have Range Rover witl lower quality, services nowhere and car parts that are to expensive then you are doomed.

  50. After TATA acquisition Landrover turned into junk.
    Every friend that owns Landrover / Rangerover warns me not to buy it. Their cars are at the dealer repair shops most of the time.

  51. Jaguar should stick to electric cars and LandRover should stick to wat they r doing right nw… problem solved..

  52. TATA won’t let down these brands n won’t even sell it even if they bringing loss to TATA… we r Indians … we know how to come over with troubles n situations… and Rathan Tata himself is an extraordinary person… He can buy many countries if he stops donating is profit.., he donates 60% of his profit every year.,. U can imagine how wealthy he might be …

  53. China? Cmmon, The auto market shrink there not only jags but also Toyota. High Luxury Car and Business cant go together.

  54. Junk! Want a reliable vehicle…….buy a Toyota Land Cruiser…….or a Lexus. Don't spin your wheels on this crap…….

  55. Tata hard times are hurting us, but we can overcome this, so not to worry , we Indians believe and always respect you.

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