Jaguar Aims to Slash Prices, Add Service Plan For 2016

Jaguar has announced lower prices and new warranty repair program. Prices for 2016 Jaguars’ will drop by $1,500 to $3,000. Jaguar wants their luxury machines to be more affordable, and besides lowering the price they are implementing the EliteCar 5-Year/60,000-mile scheduled maintenance warranty. Joe Eberhardt, CEO of Jaguar Land Rover North America, talked about the change in a statement. Eberhardt explained, “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.”

Jaguar is seeking a new strategy as they have seen less-than-stellar results thus far in 2015. According to Autodata, through eight months of 2015, Jaguar has sold 10,221 vehicles, down from 4.4 percent year-over-year. In a USA Today report Jaguar was contrasted with Land Rover, a luxury competitor that specializes in SUVs. Land Rover has sold 42,548 vehicles in 2015, an increase of 20 percent.

Examples of Jaguar’s attempt to lower the cost of their luxury machines include the 2016 XF 35t, which will start at $52,885, a 9 percent year-over year reduction. The 2016 XJ sedan will start at $75,395, but with reportedly $7,000 worth up upgrades over the $74,200 2015 model. Finally, the Jaguar XE will cost $35,885, putting it in the arena of many sedans, including the forthcoming Tesla Model III.

Will Jaguar’s plan work? Do they need to lower prices and increase service in order to draw in more customers?