Podcast available on all podcast channels or on our podcast channel here: https://www.buzzsprout.com/2203243/episodes/16466627-disruption-and-reinvention-in-the-automotive-sector-is-jaguar-land-rover-jlr-missing-the-mark.mp3?download=true.
The You Tube short version of the advertisement can be found here: https://www.youtube.com/channel/UCwW1QK_4P31MtXyYGmJOyUg
Introduction
Judging by the adverse reaction to the recent advertisement announcing the next generation Jaguar, the real message to be portrayed really missed the mark. Aired with the intent of announcing the arrival of the Jagur 00 it was ostensibly aired to alert future car buyers to the pending release of Jaguars new, upbeat format for its sports car range. The primary cause for concern was the fact that there was no image of the car in the ad – so what was the point? Not even Elon Musk could fathom that one.
But those at Jaguar didn’t really mind, in reality the ad was more about awareness creation and update to the ongoing reinvention of both JLR’s car range and company image. At least that was my interpretation of it. The ad was merely the ‘tip of the iceberg’ (the 10% visible above the waterline). Those less concerned with cars and more interested in corporate strategy, will appreciate what’s happening below the waterline. There’s a far greater number of people that don’t get it though, and that could be problem.
Instead of promoting the brand, it was widely thought that the ad was threatening the brands image thereby running the risk of turning people away rather than attracting them. An example of this view is YouTuber (Hary’s Garage) who proclaimed, ‘Current Jag owners will be embarrassed rather than impressed'. He was not alone in his thoughts!
The fact that the ad has been viewed 3.6 million times on YouTube and many more conversations and articles followed would suggest the underling branding strategy has worked – for the strategy practitioners anyway, there is no such thing as bad publicity. The impending relaunch of the Jaguar brand in its entirety is now widely known and hopefully, enthusiastically anticipated by Jaguars new target market – those in the bracket one, or even two ratchets above their existing clientele.
At the end of the day however, Jaguar is really caught between a rock and a hard place. It enjoys an iconic status in the industry thanks to the famous E Type sports car, but that car was axed way back in the 1970’s. Since then, its reputation has been tarnished because of less than favourable quality, a lack of real differentiation and lack of imagination. In contrast, incumbents in its desired market, Bentley, Porsche and Aston Martin have a strong presence, excellent reputations and longevity on their side. Potentially therefore, the transformation is a leap of faith, there is a real risk though that the entire reinvention could go wrong and that is a problem. Jaguar has committed £15 billion to the transformation project, to be conducted over 5 years. This has necessitated interim closures of two production plants – the result being that only one car is still being produced, the Jaguar F Pace. The critical question concerning this leap of faith is can Jaguar deliver the intended outcomes on the somewhat vague promise made in the ad?
This question was asked because of the apparent boldness and commitment demonstrated by JLR in its transformation agenda. It, and the associated program, Project Reimagine is an great leap of faith from which we can all learn. Titled project reimagine, their journey isn’t just about JLR alone. it is an activity that every automotive company in the world is engaged in, in one form or another.
Other examples of disruption in the automotive abound – examples are touted merger of Honda and Nissan, another is the arrival of Chinese built EV’s into global markets, another is the decline of the auto giant, Volkswagen. Examples from a different industry are BP and Shell, each of whom have backed away from initial transformation plans that would have seen them become green energy providers only.
Ultimately of course, companies in all industries are fighting the impact of environmental change; from numerous sources that I don’t need to articulate here. From an academic perspective, there is no single methodology that defines the perfect transformation. Nor is there any clear initiating/starting point. There are however combinations of methodologies and experiences that can be seen at JLR; and that’s why it’s useful for us to use JLR as a comparative example in this podcast.
I’ll start with a situation analysis followed by a strategic analysis – each contributing to a conclusion and discussion around the question “can Jaguar deliver the intended outcomes on the somewhat vague promise made in the ad?”
Situation analysis
Project Reimagine is a carefully plotted strategic roadmap that the JLR web site suggests, “will transform JLR into a sustainable, modern, luxury business.” Of course, this vision and associated massages broadcast in the ad suppose that JLR does not consider itself to be sustainable, modern, luxury, business today. But that is where it needs to be, so it is aiming for much higher targets – even if the decision risks upsetting the customers, it has today. A bold assumption indeed.
Taking a companywide perspective, it is apparent that there is quite a disparity between the Jaguar and Land Rover brands too. While Jaguar has to play catch up, its counterparts over at Land Rover have been engaged in a continual journey of renewal for many years. A history of each business provides insight and clarification.
Jaguar was founded in 1922 as an independent sports car company but didn’t become the "Jaguar" car company until 1935. The brand peaked in March 1961 following the launch of the legendary E-Type. The run of success of this model lasted until February 1975 when the technology, design and costs made it uncompetitive. The E type wasn’t the only car in its portfolio, its history lay in a number of racing/sports cars before the E Type, as well as a number of reasonably well-respected sedans. The Jaguar car company has a chequered history of ownership. It was bought and sold by commodity focused car manufacturers including British Motor Holdings, British Leyland before it was floated as an independent company again. This made it a highly attractive company for Ford which ended up acquiring it in 2000.
In contrast, Land Rover, established in 1947, when an English automotive and aeronautical engineer, Maurice Wilks sketched the design of a four-wheel drive multi-purpose vehicle in the sand of a Welsh beach. It was unusual because the sketch depicted a rugged, off-road vehicle which was ultimately marketed as a utilitarian 4WD work horse. Its quality and reliability were so strong that the brand was able to capture the tide of change which ultimately saw the Land Rover acting as a farm vehicle and also an all-terrain vehicle for use in the armed services. Over the years, it evolved into the luxury Range Rover that we know today. Somewhere along the way too, it had a strong influence on the emergence of the modern Sports Utility Vehicle market. Land Rover ownership was also varied and also included British Leyland- as well as British Aerospace, BMW and Ford. In 2008 Tata Motors, an Indian company acquired Land Rover and Jaguar from Ford, forming the topic for our discussion today, the Jaguar Land Rover (JLR) corporation.
Today, sales of cars from the Land Rover business are thriving, they are Range Rovers, Discoveries and Defenders. Jaguar on the other hand is not thriving – hence the focus of Project Reimagine. While this project is a companywide program, the focus for Land Rover is on a reduction of manufacturing costs while at the same time, improving reliability and quality. For Jaguar, the transformation is all about upscaling its market position and enhancing operational performance before emerging side by side with Land Rover in a position of continual, harmonious transformation and renewal.
This state of progressive transformation and evolution is a hallmark that Land Rover has well and truly captured. Each new Range Rover release represents a superb upscaling of the previous model. For Jaguar however, project Reimagine is all about learning from Land Rover and the adoption of their approach to business. It starts with the reinvention of the brand, (hence the notorious advertisement) and a commitment to embrace the Range Rover ethos.
JLR stated its objective with project reimagine is grounded in the adoption of sustainability, which is “at the heart of everything we do.” Its overall aim is to “achieve our goal of being carbon net zero by 2039, with delivery of our 2030 Science Based Targets initiative (SBTi) carbon reduction targets as a significant milestone.”
Through its own version of Reimagine (project Roar), Jaguar aims to deliver double‑digit EBIT margins by 2026 and be net cash positive by FY25.” Key objectives are:
1. Modernisation and Luxury: Combining design philosophy with sustainability, innovation, and exceptional client experiences to create highly desirable vehicles.
2. Electrification: Committing to electrifying their entire range, with Jaguar becoming an all-electric brand by 2025 and all Land Rover models offering electric versions by the end of the decade
3. Sustainability: Aiming to become a carbon net-zero business by 2039, with a focus on responsible excellence across their operations
4. Enterprise Transformation: Restructuring the company to be more agile and efficient, empowering employees to innovate and deliver with clear purpose.
5. Global Collaboration: Engaging in strategic collaborations and co-creation with innovators to drive the transition to an electric future.
And there we have it, upscale in every direction: go electric, go upmarket and globalise through better quality, lower costs, and global reach. The rite of passage will be leveraged from the iconic jaguar brand although it enters very murky waters having enacted a new look Jaguar that starts with a different font and style of the name itself – followed by trendy Jaguar 00 – which in reality is a metaphor for what the leaders of Jaguar want it to become.
Strategic Analysis
From a strategic perspective the purpose of Project Roar is to allow Jaguar to transform from perceptions of ordinary, non-sustainable, unreliable cars with a troublesome reputation for poor quality and an underwhelming idea of luxury; things had to change.
The enormity of change however is remarkable in its depth, breadth, and cost. In Project roar, the necessary investment will support the development of electric, autonomous, AI, and digital technologies, as well as the transformation of JLR manufacturing facilities.
But that is not only the objective of the project. Jaguar is also focusing on its brand, as it seeks to leverage that into market segments well known to us today, but not those where they currently have a presence. The ambition for Jaguar specifically is to focus only on luxurious, electric cars that will offer benefits and features at a standard that fits underneath brands in the highest level such as Bentley, Porsche and Aston Martin.
No doubt they are imaging further transformation to the full-blown driverless version of the car of the future, we don’t know. So where does that lead us? While that strategy is acceptable for the next five years or so, the longer-term outlook may not be so peachy.
There’s a lot going on in the wider world of the planet and that will have significant consequences for Jaguar and indeed industry in its entirety. The problem for everyone in business is that industrialisation is at a tipping point. Industrial activity is nearing the pointy end of change in areas of technology, societal norms, and a reversal of globalisation – if not in fact at least in philosophy.
At the same time forces from climate change, disease, geopolitics are also exerting lasting pressure on strategic decision making. While you will be familiar with each of these as independent causes of concern the combined effect on the automotive industry alone makes long term decision making more risky and more difficult.
Projections and scenarios developed by PHSANDL’s research arm, the Strategic Management Institute recognises that advances in technology are highly likely to enable the evolution of micro systems, emerging in the form of entities such as smart cities, circular economies and integrated industry-oriented systems that include smart health, smart houses and integrated mobility – in the form of a system. In the context of mobility, we expect that car companies will evolve into integrated, corporate collaborative systems. These systems will incorporate many related parties which are intertwined in one large operation where all members share the same level of the spoils.
The primary driver of such systems will be the owners of each system. Instead of taking a clip of the ticked each time a raw material, component, transport company and retailer touches the product – investors in the system will share the profits as if it were only one company. In other words, all participants in the system will seek to optimise efficiency and effectiveness – for all the system rather than as one member company.
As a mobility system members will include a much broader range of members that could include battery charging stations, hotels, airlines – who knows. The rub is that while these may not be in existence in five years’ time, they could well be in full swing in ten years’ time – and the new Jaguar won’t be launched for another two years.
Of course this is purely conjecture, keep in mind however Ford has recognised it is part of a mobility system and in 2021 it noted that “the company is committed to advancing mobility solutions which focuses on developing innovative transportation services and technologies to enhance urban mobility and address the evolving needs of consumer”. In 2024 however, the volatility of the automotive industry drove Ford to switch again. In a decision to move away from ambitious autonomous vehicle plans Ford chose instead to invest in software and services related to connected vehicles and fleet management.
The mobility division was integrated with its Ford Pro commercial and government division, signalling a stronger emphasis on commercial customers with this advanced technology. This meant that the more broad-based collaborative approach was put on hold. Nevertheless, the Ford experience suggests that the value of electrification is strong, however its primary advantage is in integrated software solutions that realise most gains in the more complex commercial mobility space. This is the antithesis of the Jaguar philosophy which is grounded in a promise of ‘Copy Nothing’. Why? Jaguar could end up creating an EV that only Jaguar customers can access making for very low volumes and by definition, very high costs.
Don’t forget, targeted competitors Bently and Porsche are part of the Volkswagen group which owns numerous brands and consequently realises significant economies of scale in the operation of a high-volume EV fleet. Jaguars other targeted competitor, Aston Martin has gone the other way. They already have a strong brand, so their strategy is to take a deliberate and measured approach to electrification, balancing the need to embrace new technologies with the desire to preserve its brand heritage with the objective of nurturing its existing customer base.
We can conclude therefore that the only visible difference between Jaguar 00 and images of any other sports car of 2026 is the size of the proposed investment. While Range Rover, Discovery and Defender are already at the same level as Bently, Porsche and Aston Martin, Jaguar is playing catch up. With regard to the Jaguar 00 especially, competitors already offer or are close to an offer of aerodynamic/sloped roofs, EV energy packs, bright colours, advanced technologies, four wheels (and no spare) and on it goes. A car is a car.
So why am I so dismissive? It seems that the real story in Project Reimagine is the continuation of the successful Land Rover brands and a repositioning of the Jaguar brand in the form of a catch up. There is glitz and there is glitter but when playing catch up it is easy to miss the longer perspective of the future of mobility. To do that, it is essential to look beyond industry (Level 2) forces of change and look instead to Level 1, external, environmental change – which is significant. Let’s go to say, 2030, that’s 5 years from now, then look back 5 years to see how fast, or slow, change has taken place.
The standout automotive company in that era is Tesla, but it had only just become the world's largest automaker by market capitalization (July 1, 2020), when it surpassed Toyota's market cap of $202 billion. Impressive? yes, but it was the only EV in the market. The entry point for Jaguar 00 is right in the middle of a time when nearly all cars will be EV’s so differentiation will be even more difficult. But that is not the real issue.
What is at issue, is the fact that by 2030, EV;’s could well be active members of established, integrated mobility systems. It could also be the time when the world will have reached peak climate change not to mention advanced forms of Ai, the Internet of Things, Block Chain/Crypto and Augmented Reality. Will any luxury sports cars have a place in this world? I don’t know, but equally it doesn’t seem to present as a factor in JLR’s thinking or more importantly, its investment program. There again, there’s also hydrogen as a viable alternative to electric energy.
Toyota has long held a philosophy that commits it to Hydrogen power. But so does BMW with its soon to be released Hydrogen iX5. This car, BMW expects will be the world's most powerful passenger-car fuel-cell system supported by a dedicated battery. Planned for launch in 2028, this vehicle has been tested worldwide in various conditions, demonstrating impressive performance. JLR can be seen therefore to have bet the farm on Reimagine, but is it enough? I would bet that that’s not all that it will do. The Land Rover business is successful today and continues to evolve. However, evolution might not be enough.
The desired markets they wish to enter are also evolving. This movement is exemplified by Rolls-Royce which recently announced an investment exceeding £300m to extend its bespoke manufacturing facility at Goodwood. As part of the BMW Group hydrogen could well be a part of the story.
Conclusion
The question we sought to address was: "can Jaguar deliver the intended outcomes on the somewhat vague promise made in the ad?” At the end of the day however it becomes apparent that in reality, the JLR board had to decide between one of two alternatives. They were wind it up or invest, they chose to invest. I think that was a good decision - on balance. The project is tough, but the commitment is real and that commitment along with a strength of leadership (and followership), support from the top and a clear sense of direction (and strategy) make up about 90% of the success factor in implementing strategy. So yes, I think they will succeed, they have no choice. While I am a great believer in learning from failure and not threatening people about failure, that is for individuals and leadership nuances. For Jaguar as an independent business entity however, failure is not an option.
I look forward to revisiting the case again in about two years time.
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