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Could Jaguar become an EV-only brand?

Just yesterday we wrote about the Heisenbergian uncertainty surrounding the future of the Jaguar F-Type. A new report in Autocar prompts us to consider extending that ambiguity to the entire Jaguar brand. The UK magazine reports the automaker's product planners have devised a ten-year plan to switch to a pure EV lineup of cars and crossovers. According to Autocar's sources this is a planning exercise and doesn't have the green light, but it's "fairly advanced" and has adherents inside the company. The first shot fired would be an all-electric XJ replacement. That sedan, a "no-holds-barred luxury car" to challenge the Tesla Model S and Porsche Taycan, would provide emissions-free motoring before the Mercedes-Benz S-Class and BMW 7 Series come with their EV propositions. Around 2023, an EV crossover a touch larger than the full-sized Audi E-tron would replace both the XF and XE sedans. Two years later, a new mid-sized I-Pace would debut as both the F-Pace and E-Pace fade out. And two years after that, around 2027, the J-Pace luxury crossover would sigh its last ICE gasp. And what about the F-Type? The report says "with no replacement for F-Type in the works," an electric sports car "is also a possibility." There's no mention of the XK revival. Right now, Jaguar sells seven models - four sedans and three crossovers. As the Autocar article's written, come 2027 Jaguar would have an electric XJ sedan, a full-sized EV crossover, the I-Pace, and perhaps an electric sports car. That's a brave new world - one we're not sure Jaguar dealers could survive in. Problem is that Jaguar and its dealers are having plenty of problems now. Chinese-market volatility, the cloud around diesels, and Brexit uncertainty have contributed to a sales slump so dire that Jaguar's Castle Bromwich plant is going to a three-day week for the rest of the year. The sales flu has spread to Land Rover, too, the brand's Solihull plant closing for two weeks to realign dealer inventory. Considering all that, and with no easy relief in sight, the product planners are apparently debating whether a new, traditional three-model sedan range is worth the investment. The upside of going all-electric is said to be higher sales, with internal estimates supposing 300,000 units annually. Last year Jaguar sold 178,500 units. The marque could rake in larger profit margins on those sales, too, thanks to premium buyers being ready to shell out big ducats for EVs.

Jaguar Land Rover in talks for Southern US factory

Jaguar Land Rover is getting serious about global expansion, and that means it can't only build its vehicles in the UK anymore. The British automaker is cutting the ribbon at its new plant in China tomorrow, marking the opening of its first factory outside the UK. In 2016, it will open another factory in Brazil. But the latest intel has it that JLR is looking into a US factory, as well.
The report, which comes to us from the Sunday Times by way of Automotive News Europe, indicates that the company is evaluating locations for a North American factory, with options centering around Southern right-to-work states like South Carolina, where BMW operates its plant in Spartanburg and a wide array of other automotive operations are based as well. The JLR plant would reportedly ramp up to a capacity of 200,000 units per year.
In related news, while that new plant JLR is inaugurating in Changshu, China, is initially slated to produce the Range Rover Evoque, it is also expected to start building the new Discovery Sport as well - just like the Halewood plant in the UK that has handled Evoque assembly from the start and which just built its first Discovery Sport, as well.

Average new-vehicle transaction price hits a whopping new peak in December

Elevated prices for products and higher borrowing rates led to record high transaction prices for new vehicles in December, with the average cost in the U.S. rising to a record $49,507, according to data from Kelley Blue Book released today. The report notes that ATPs — average transaction prices — have climbed above suggested retail prices — MSRPs — for more than a year. Sales volumes were up in December on a year-over-year basis by more than 5%, a situation Kelley attributed to improved supply. Overall sales for 2022, however, were off 8% year over year. “The transaction data from December clearly indicates overall prices showed no signs of coming down as we headed into year-end,” said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. “Luxury prices fell slightly in December, but non-luxury transaction prices were up. Truck sales were particularly strong last month, and with many trucks selling for more than $60,000, a new record was all but inevitable.” Industry analysts claim the most obvious headwinds in the new car market are generated by higher interest rates, forced by the Federal Reserve's rate hikes intended to tame inflation, and by generally limited inventory. A recent report from J.D. Power showed that the average monthly payment for a new vehicle loan in December was $718, up $47 from a year ago. But 16% of consumers in December took out loans with monthly payments of over $1,000. Consumers think vehicles, and electric vehicles especially, are way too expensive. Fortunately, manufacturersÂ’ incentives, all but extinct in the past two years, are returning, especially in the electric-vehicle and luxury market, the Kelley data suggest. Plus, "With the new tax credits on the way, electric vehicle ATPs will drop lower for qualifying vehicles,” Rydzewski said. Non-luxury brands, such as Honda and Kia, showed particularly strong performance in December, with the average price paid at $45,578 — a record high and an increase of $994 month over month. Meanwhile, the average luxury buyer paid $66,660 for a new vehicle last month. Mercedes-Benz and Land Rover showed the most price strength in the luxury market, transacting between 2.6% to 6.5% over sticker price. But luxury brands Audi, BMW, Infiniti, Lexus, Lincoln, and Volvo showed the least price strength with some discounting in effect, selling 1% or more below MSRP in December, according to the survey.