JAGUAR IS PUMP ‘N DUMP ECONOMICS.
But we’re being ‘manipulated’ to look at the cars & comms work, when in reality there’s a bigger play going on in the background.
The facts are you can’t buy a new Jag today.
No one has really bought them for years (-80% drop in 2023)
For comparison, BMW sold 362K cars in the US, Jag 8k.
In real terms, Jag hasn’t been able to compete with Audi, Mercedes etc across the 4Ps for years.
Strategic redundancy is being engineered into the dealer network (target -60% dealerships in ’25), & supply chains. Or as the CEO put it, a full global shut down of manufacturing & sales “for a 2year reset”. Wow.
How do you reset a business with no income and mind boggling overheads?!
The only logic left is a repositioning.
New target (youthful), new product (concepts only atm), new comms (eeeek).
However, 30 somethings don’t buy £120k electric cars, en masse
But $403bn TATA (Jag’s owners) know this, and don’t actually need Jag to sell any…
While we’re all gossiping about the rights or wrongs of the ads, TATA are orchastrating a pump ’n dump scheme.
Execute a very controversial & news worthy repositioning. Tick.
Register public interest in model/show cars via maaaaassive global coverage, commentary, news jacking, celeb deposits. Tick.
And then sell the business on the back of the “enormous interest, latent love and consumer demand for the Jaguar brand”.
Insert Geely (Chinese co, $16bn), or Wang...both acquisitive, looking for auto brands (the former recently bought Lotus), to add bona fide heritage to their amorphous, no brands (BYD?!) auto portfolio.
They then do a proper Jag repositioning commensurate with its history, invest ‘patient capital’, reengineer on their existing chassis/power platforms to keep costs low (a la MG c/o SAIC Motor Corp, Nanjing)…and then share with the world.
It’s all about sales. Just not the cars. It never was.