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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 The brand's quality and reliability dings have also lurked in the back of buyers' minds for decades, though that's an outdated notion.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.

Zetsche's CEO tenure extended through 2016 at Daimler

There appear to be two takes on Daimler CEO Dieter Zetsche having his contract extended for three more years, to 2016. A report in The Detroit News quotes the chairman of Daimler's supervisory board, Manfred Bischoff, talking up the stability at the top, "With today's extensions of the contracts of Dieter Zetsche and Thomas Weber, we are maintaining the important continuity at the top executive level." Bischoff also stated that that Zetsche has a plan to "further enhance Daimler's overall performance."
Over at Reuters, though, the three-year extension was seen as a lack of complete confidence in Zetsche's plans, since his contract was supposedly meant to be extended by five years. A spokesman said the board decided to extend executive contracts by only three years if the person was 60 or would turn 60 during the contract, but that was news to observers. Zetsche wants to make Mercedes-Benz the top selling luxury manufacturer globally by 2020, but has fallen to third place behind Audi and BMW. It hasn't held the top spot 2005, and investors judged it valued at half that of BMW at the end of 2012 once Daimler's truck business was subtracted.
Analysts cites the fact that Daimler stock hasn't bested its rivals but twice in twelve years, and that the company revised its profit target downward last year by nearly one billion euros, warning of stagnant earnings this year and will miss its original margin target for 2013.

Formula One's Valtteri Bottas can turn it up to 11 in Spain

BARCELONA - Valtteri Bottas can add his name to one of Formula One's longest sequences by following up his breakthrough win in Russia with another triumph when the European season starts in Spain this weekend. The Finn, fresh from his first Grand Prix victory with champions Mercedes in Russia, is the man most likely to become the 11th different winner in a row at Barcelona's Circuit de Catalunya. No other track on the calendar has had such a variety of winners over the past decade, an ironic fact given that it is the most familiar to drivers from winter testing and was once famed for its predictability. Last year it was Dutch 18-year-old Max Verstappen who became the sport's youngest winner when he triumphed for Red Bull, on his team debut, after both Mercedes drivers collided at the start. In 2012, it was now-departed Venezuelan Pastor Maldonado -- a one-hit wonder -- who handed Williams a surprise victory that remains their most recent. Ferrari's championship leader Sebastian Vettel and Mercedes rival Lewis Hamilton, 13 points behind the German, will start as favorites and success for either could be an omen given that both went on to take the title last time they won in Spain. But Bottas, who joined Mercedes from Williams in January as replacement for retired 2016 world champion Nico Rosberg, is the best bet to continue the streak of different winners in Spain even if he has yet to finish higher than fourth there. "Getting that first win definitely gives me a lot of confidence that I can do it, even though I always knew I had the ability," he said after Sochi. "And now it's done, I just want to do it again and again." RICCIARDO REVIVAL The only other driver from the leading trio of teams yet to triumph in Barcelona is Verstappen's Australian team mate Daniel Ricciardo, but the Red Bull has lagged Mercedes and Ferrari on pace so far this year. That will surely change, with the flow of upgrades set to speed up now that teams are closer to their factories, and Red Bull have some big chassis modifications in the pipeline with engine improvements still to come. "I hope the upgrade will give us a chance to really fight with Mercedes and Ferrari or at least get us closer," said Ricciardo. The driver of car number 11, Force India's Mexican Sergio Perez, has racked up 14 successive points finishes and he too will have aerodynamic updates on his car.