Given the unprecedented levels of investment, and the expectations of both maker and benefactor, the X-Type had a good deal of heavy lifting to do. Its eventual failure not only cost Jaguar dearly, it set the carmaker back to such an extent that it never truly recovered. X-type was commissioned with one overarching mission, to more than double Jaguar’s sales volumes, transforming the carmaker as a serious player in the luxury car market, especially in the US, where these cars had historically sold in large quantities. But the X400 misfired, falling well short of projections, and as it would transpire, fiscal break-even. How so?
Jaguar’s compact post-Millennial contender misfired badly. We look back on the X-Type and consider its legacy.
In car manufacture, there can be no success without failure, each new model an educated shot in the dark, each failure a reproach, all the more so should the product in question represent a new market sector for its maker. Moving downmarket carries greater risk, for the virtues to which customers have become familiar and value most must be offered in diminished form. Nor does development cost fall, any gains being rooted in volume and economies of scale. Furthermore, once a business has taken such a step, there really is no going back.
To some extent therefore, the X-Type irreparably damaged brand-Jaguar, the carmaker never quite recovering from the financial losses incurred by the X400 programme. The figures involved are sobering. According to a study carried out by corporate analysts, Sanford C Bernstein a number of years ago, Jaguar allegedly lost €4600 on every X-Type sold – an overall loss amounting to over €1.7 billion.
Widely viewed as Jaguar’s deadliest sin and the butt of derision amongst the more sensationalist automotive press, the story behind the X-Type’s less than charmed career is not only more complex than is often told, but deserves a less emotive, more nuanced telling. But beforehand we must first Continue reading “Last of England”
2007’s X-Type facelift illustrated how one can do more with less.
Few cars are created with an unlimited budget – after all, such a bounteous situation is no guarantee of an inspired result. On the other hand, budgetary restrictions are rarely a recipe for a successful product either. Certainly, when Jaguar’s 2001 X-Type was being scoped during the latter part of the 1990s, the Ford-controlled British luxury carmaker wasn’t exactly awash with cash, even if by then they were at least making money rather than haemorrhaging it as they had been, only a few years earlier.
X400 (as the X-Type was termed at Jaguar) formed the core of the blue oval’s growth strategy for the leaping cat, aimed at catapulting the marque into the big league with annual sales in excess of 200,000 cars. A hugely ambitious programme, which also encompassed the refitting of the otherwise defunct Ford Halewood plant in Merseyside; this latter aspect ladling such costs upon the programme that anything less than total success would be viewed as failure.
In the wake of Ian Callum’s sudden departure from Jaguar, we document the circumstances of his arrival in 1999, with an overview of his predecessor’s legacy.
The immediate period following Ford’s takeover of the Jaguar marque was a pretty febrile time – for a whole host of reasons, but primarily for the schisms which took place as Blue Oval management took stock of what it had purchased. As the stark realisation dawned that $ billions would be required to Continue reading “Custodian of the Flame”
As Jaguar’s Wayne Burgess hefts his amp and packs his guitar case, we ask, is his departure part of a broader trend?
Something is afoot within the European motor industry and in particular, amidst the more creative end of the spectrum. What began as a slow drip is becoming a steady flow as more and more senior design staff depart from secure, well remunerated positions at established carmakers in favour of (for the most part), Chinese upstarts or indeed, start-ups.