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Weekly Recap: Jaguar takes a leap with price cut, new strategy

Jaguar was one of the famous automotive props and plotlines in the now-iconic drama Mad Men. There's a scene where the show's protagonist, Don Draper, deftly undercuts an influential Jaguar dealer by indicating that get-me-in-the-door local radio spots would be an effective way to sell cars like the slinky E-Type. The British executives think this is folly – Draper knows they will – and his advertising strategy wins out over the dealer's approach to move the metal. Jaguar's not doing that, but half a century later in the real world the company is launching plans to make its cars more attainable to new and younger customers like Millenials. These aren't coupons, but this is a leap for Jaguar, which has long banked on sexy styling and its rich motorsports history to overshadow its past mechanical flaws. Put simply, Jaguar is addressing the reasons why people, especially the younger set, don't buy its cars. The 2017 XE will start at $35,895 when it launches next spring – which makes it an attractive buy for a successful, relatively young person. When it's time to move up, the redesigned XF will be more attainable, coming in at $52,895, which is $5,275 less than the 2015 model. The flagship XJ sedan and the enthusiast-oriented F-Type sports car will also get thousands of dollars worth of added standard features, and Jag is actively pitching them as a better value than their competitors. "The Jaguar brand is on the eve of a major transformation that will see it dramatically increase its presence in the United States luxury marketplace with an expanded lineup, pricing focused on the core of the luxury market, and an all-new ownership package with best-in-class coverage," Joe Eberhardt, CEO of Jaguar Land Rover North America, said in a statement. The brand's quality and reliability dings have also lurked in the back of buyers' minds for decades, though that's an outdated notion. Jaguar placed third in J.D. Power's Initial Quality Study in June and was the top-ranked luxury brand in J.D. Power's Customer Service Index in March. Not content, the company is rolling out an enhanced program called Jaguar EliteCare that launches on 2016 models. It offers a five-year, 60,000-mile limited warranty, the longest among its competitors, with free scheduled maintenance during that period. The plan also covers roadside assistance and connectivity features.

Recharge Wrap-up: Volvo's efficient truck concept, Tesla's updated mobile charger is cheaper

Mercedes-Benz plans to equip its gasoline-powered cars with particulate emissions filters, just like its diesel vehicles. Claiming to be the first automaker to apply the technology to gasoline motors, successful testing in the S500 led to the decision to expand the use of these filters. This announcement coincides with a $3.35 billion investment in clean diesel technology, including a new four-cylinder engine that adheres to strict emissions guidelines. It's not clear when Mercedes will begin including the filters on its gasoline vehicles, or if it intends to use them outside of Europe. Read more at Green Car Reports. Tesla has updated its mobile charger and given it a lower price. The 40-amp "Mobile Connector Bundle" – which used to sell for $650 – is now priced at $550 with two adapters and a storage bag, with an available $520 version offered without the adapters. Tesla's product description reads, "The Corded Mobile Connector has an integrated 240 volt 50 amp rated plug for high power output. A seamless design provides a low profile connection, allowing for use with covered outdoor outlets." Read more at Electrek. Volvo has developed a new truck concept that reduces fuel consumption by more than 30 percent. The modified Volvo FH 420 long-haul truck, simply called the Volvo Concept Truck, features 40 percent better aerodynamic efficiency, a weight reduction of about 4,400 pounds, and tires with lower rolling resistance. The truck's rear view mirrors have been replaced by cameras, which, in addition to reducing drag, also improve safety through better visibility. While the research vehicle won't reach market as-is, some of its aerodynamic features have already been included in real-world applications, with more to come as Volvo aims to improve the efficiency of its trucks by 50 percent. Read more at Green Car Congress, and in the press release below. Volvo Trucks' new concept truck cuts fuel consumption by more than 30% Almost one-third lower fuel consumption. Volvo Trucks' new concept vehicle shows how it is possible to drastically boost productivity in long-haul operations. Among the secrets behind these remarkable fuel savings are aerodynamic design and lower kerb weight. With support from the Swedish Energy Agency, Volvo Trucks has developed a new concept vehicle, the Volvo Concept Truck. It is the result of a five year long research project aimed at creating more energy-efficient vehicles.

The UK votes for Brexit and it will impact automakers

It's the first morning after the United Kingdom voted for what's become known as Brexit – that is, to leave the European Union and its tariff-free internal market. Now begins a two-year process in which the UK will have to negotiate with the rest of the EU trading bloc, which is its largest export market, about many things. One of them may be tariffs, and that could severely impact any automaker that builds cars in the UK. This doesn't just mean companies that you think of as British, like Mini and Jaguar. Both of those automakers are owned by foreign companies, incidentally. Mini and Rolls-Royce are owned by BMW, Jaguar and Land Rover by Tata Motors of India, and Bentley by the VW Group. Many other automakers produce cars in the UK for sale within that country and also export to the EU. Tariffs could damage the profits of each of these companies, and perhaps cause them to shift manufacturing out of the UK, significantly damaging the country's resurgent manufacturing industry. Autonews Europe dug up some interesting numbers on that last point. Nissan, the country's second-largest auto producer, builds 475k or so cars in the UK but the vast majority are sent abroad. Toyota built 190k cars last year in Britain, of which 75 percent went to the EU and just 10 percent were sold in the country. Investors are skittish at the news. The value of the pound sterling has plummeted by 8 percent as of this writing, at one point yesterday reaching levels not seen since 1985. Shares at Tata Motors, which counts Jaguar and Land Rover as bright jewels in its portfolio, were off by nearly 12 percent according to Autonews Europe. So what happens next? No one's terribly sure, although the feeling seems to be that the jilted EU will impost tariffs of up to 10 percent on UK exports. It's likely that the UK will reciprocate, and thus it'll be more expensive to buy a European-made car in the UK. Both situations will likely negatively affect the country, as both production of new cars and sales to UK consumers will both fall. Evercore Automotive Research figures the combined damage will be roughly $9b in lost profits to automakers, and an as-of-yet unquantified impact on auto production jobs. Perhaps the EU's leaders in Brussels will be in a better mood in two years, and the process won't devolve into a trade war. In the immediate wake of the Brexit vote, though, the mood is grim, the EU leadership is angry, and investors are spooked.