BARCELONA, Spain -- Jaguar has cut production so it can reduce incentives, particularly in the United States.
"We want profitable sales and have moved away from incentive-driven strategies," Joe Greenwell, CEO of Jaguar-Land Rover told the Automotive News Europe Congress this month.
Jaguar production dropped 22.8 percent to 27,139 units in the first quarter compared with the year-ago period. Greenwell said thinning its stock of unsold cars will allow the British brand to move away from discounting.
Jaguar has abandoned its goal of making 200,000 cars a year. Last year it produced 118,000 cars. Greenwell declined to reveal 2005 volume, saying only that it would be substantially less than in 2004.
Greenwell said the first-quarter drop in production is in line with Jaguar's recovery plan, which includes the closing of its Browns Lane assembly plant in Coventry, England. The plant will stop production in September.
Jaguar, which is part of Ford Motor Co.'s Premier Automotive Group, has lost an estimated $1.5 billion in the past three years.
"It is our mission to remove the burden, but it is not a quick fix," Greenwell said. "I don't expect Jaguar to break even before 2007."