http://www.autoextremist.com/page2.shtml#Rant

by Peter M. DeLorenzo

Saving Jaguar. Detroit. With Bill Ford hiring Kenneth Leet, a former investment banker and merger-and-acquisition specialist at Goldman Sachs and Bank of America, as a "strategic advisor" - all signs point to the Ford Motor Company getting ready to jettison a brand or maybe even two from its ill-fated Premier Automotive Group because of its relentless unprofitability. Prime target on the hit list is Jaguar, the once-heroic British brand that had the misfortune of falling into the wrong hands, in this case the stumbling, bumbling and flat-out incompetent managers assigned by Ford to "right" the company, but who instead **** near ran it right into the ground with a series of missteps, ill-conceived strategies and rampant cluelessness.

What happened to Jaguar should be a cautionary tale in the now frenzied movement to foster alliances in the burgeoning global automotive landscape. It should be, that is, but then again, automotive managers around the world have demonstrated time and time again the propensity to screw things up in the name of economies of scale or acquiring instant "prestige" - which is exactly what happened to Jaguar.

Simply one of the greatest automotive brands of all time, Jaguar - though a tarnished and a bit woebegone from years of doing things "like we always did" when the automotive world changed rapidly around them - was a wildly attractive brand ripe for the picking when Ford acquired it in 1989 for $2.5 billion. Who knew back then that the initial purchase agreement would be the high point of the association?

Ford made all the right noises at the time of the purchase, talking about "protecting and nurturing" the brand, while insisting that they knew and understood what they had in Jaguar and would act accordingly. They then, of course, proceeded to embark on a strategy that was so wrong-headed and so off-target that they've left the brand in tatters, despite their latest attempt at marketing their way out of their mistakes with a new advertising push and a freshened XK luxury sports car.

Ford managers looked around them at the time of their purchase and saw BMW, Mercedes-Benz and the emerging Lexus, and decided the only way to take Jaguar forward was to expand its lineup and aim straight for the sinkhole of modern automotive branding - the dreaded "near luxury" market. The "near luxury" market is the $30,000-$40,000 segment that is absolutely irresistible to today's automakers, although if they do it wrong, there are severe penalties to pay. It's like the scene at the end of "Raiders of the Lost Ark" when the bad guy opens the chest declaring, "It's beautiful!" - only to discover that he's unleashed the wrath of hell (and gets his face melted off for his trouble).

No, no one got his or her face melted off at Ford, but they unleashed the Jaguar "X-Type" into the market, a warmed-over Ford Mondeo wearing Jaguar accoutrements designed to make the brand more "approachable" and, oh yes, by the way, spike the Jaguar volume, which would in turn make big profits.

At least that was The Plan, anyway.

Instead, we all know what happened. Saddled with the weight penalty of all-wheel-drive and an anemic V-6 engine, the only thing even remotely "Jaguar" about the X-Type were its "leaping cat" emblems. The car was simply not ready for prime time, especially when its competitors in the pseudo-luxury segment were better by virtually every possible measure.

Jaguar volume did, in fact, go up, as Ford abandoned any shred of common sense left and increased production of the X-Type to meet the perceived "demand" from dealers clamoring for more - a frenzy brought on by their new-found glee of finally having a volume Jaguar to sell. And in the process, Ford managers presided over an almost criminal destruction of Jaguar's brand image. Jaguar ads were soon touting $199 discount leases, and dealers resorted to "Come on down!" marketing as the initial consumer interest cooled. And in no time at all, the X-Type was dead in the water.

In the ensuing melee, Jaguar's image took a near-fatal hit, as the distinctive brand that once symbolized grace, performance and a different drummer-like exclusivity, and that once thrived on its oh-so-British heritage, was now relegated to the dust bin of mediocrity - brought down by an egregious combination of serial marketing incompetence and unbridled arrogance by a bunch of hacks in Dearborn who should have known better, but who clearly didn't have a clue. Now, Ford is in the throes of a new marketing and product campaign designed to right the severely listing Jaguar ship - and ironically, in so doing, make the brand attractive to global auto industry players. And even though the XK is a credible effort (although not nearly as good as the gushing buff books would have you believe - after all, they're loath to utter a discouraging word about any luxury performance car these days in fear of having their free foie gras rations terminated), the damage to Jaguar is done.

So, my advice to the suitors who will line up to pursue the possibility of acquiring Jaguar? Immerse yourselves in the tradition of the brand - and if you don't know where to look, it can be found in the magnificent C-Types, D-Types, XKSS's and E-Types from the '50s and '60s. And if after studying those fantastic automobiles, you still don't get it, please move on, because you're not worthy.

Whoever ends up with Jaguar needs to understand one fundamental, High-Octane Truth about what Jaguar needs to survive and hopefully thrive from this point forward - an iconic Jaguar "statement" car must be created for the future. No, I'm not suggesting yet another retro-mobile, but I am suggesting a design for a lightweight, two-seat sports car that embodies everything that Jaguar stands for Ð with sensual, if not outright sinful styling, cat-quick agility and riveting performance. It must look like it is a continuation of the greatness of Jaguar's heyday - and it must exude the very essence of Jaguar.

(Ironically, even Ford almost snatched victory from the jaws of defeat several years ago when it stunned the Detroit auto show with its "F-Type" Concept. It captured the essence of the Jaguar brand, and it was definitely on the right track, but they didn't have the cojones to build it, instead hinging the success of the brand on the ill-fated X-Type - and thus losing their grip on Jaguar altogether. It's funny - and sad - because Ford did a similar thing with the Lincoln brand several years ago. They showed a stunning Lincoln Continental Concept, which would have saved that brand from the bland, also-ran mediocrity it enjoys today - but they didn't have the sense to do that car either. A distressing pattern, to be sure - and why Ford is forever taking three steps forward and five back at every turn).

I sincerely hope that whoever takes Jaguar off of Ford's hands has the common sense to do right by the brand.

Anything less - and it will ensure the death-knell for one of the great automotive brands of all time.

Thanks for listening, see you next Wednesday.

After a 22-year career in automotive advertising, Peter M. DeLorenzo founded Autoextremist.com - an Internet magazine devoted to news, commentary and analysis of the auto industry - on June 1, 1999. Since then, the site has become a weekly "must read" for leading professionals within and outside the auto industry, and DeLorenzo is considered to be one of the most influential voices commenting on the business today.

 

Nice find.

 

Although no F-type, the new S could/needs to be the brands savior. If it is, we may yet see the F.

I sometimes seem to be a big cheerleader for a Ford turnaround, but I wasn't a couple years ago. Mazda's amazing rebirth, and the simply awesome resurrection of Aston Martin changed my mind. If Fields and Bez can pull out those brands, any and all can be saved.

 

I'm not sure what you mean by Mazda's amazing rebirth since Mazda's sales have been pretty much the same in the past 10 years.

1995: 283,745
1996: 238,285
1997: 221,840
1998: 240,546
1999: 243,708
2000: 255,526
2001: 269,602
2002: 258,213
2003: 258,865
2004: 263,882
2005: 258,339

 

Sales are your only yardstick? How much were you interested in a 1995 Mazda( other than the Miata)? What do you think of the Mazdaspeed6, Mazda3, RX-8, CX-7/9, and MX-5?

 

The fact that Mazda makes now better cars than before doesn't do Mazda any good if people are not buying those cars.

 

I'd hardly say one can look at 250,000 units in a niche import brand and say "people are not buying those cars." Sales are not the only yardstick, you have to look at the market overall. They aren't a mass-sales powerhouse, but they aren't in the Red either. With the Big 2 (toyota+honda) snatching up marketshare, a brand like Mazda holding onto a quarter of a million sales is pretty impressive.

 

I think you're missing my point. Mazda makes a lot better cars now than they did 10 years. However, sales are not any higher. I'm not saying that 250,000 is small number, I'm saying number of Mazda's sold now should be a lot higher than in was 10 years ago.

 

maybe they made more before

that is very weird... Mazda has been improved tremendously in many areas. I am surprised to see they have sold the same number of vehicles 10 years straight.

Maybe them not losing ground is miracle enough lol