For Land Rover dealers, tight supply helps profitability
Land Rover dealers in most of the country are sold out of the new-generation Range Rover SUV through early summer.
The 2013 Range Rover went on sale in December, replacing a 10-year-old model. "We are one or two truckloads short -- which also creates a situation where it helps profitability," said Michael Levitan, head of the newly formed 12-member Jaguar Land Rover Retailer Cabinet and COO of Long Island Automotive Group, which owns three Land Rover stores in New York.
Land Rover dealers were told at a meeting that U.S. management is trying to get as many Range Rovers as possible, but demand is tight worldwide. "We are asking for as many vehicles as we can get. The vehicle is sold out for six months to a year," said Chris Marchand, executive vice president of operations at Jaguar Land Rover North America.
Because of tight supply, Land Rover decided not to bring the base model that starts at $83,545, including destination, to the United States. Instead, the new entry model is the HSE, which is priced at $88,545. Two other models are available: the $99,996 Supercharged and the Autobiography that starts at $130,995. Prices include destination.
The HSE comes with a panoramic roof, 20-inch wheels and an upgraded audio system. Levitan said buyers of the prior generation Range Rover ignored the base model; the HSE with its standard equipment is configured the way most wanted their vehicle.
Dealers and Land Rover management said Land Rover sales in 2013 are likely to top the 43,664 units sold in 2012, which was up 15 percent. Levitan said that is despite the shortages and not yet knowing what dealer allocation will be for the entire year. "We need to be mindful that we can't just order and get them -- dealers understand that."
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