Eberhardt: Jag wants to equal Land Rover sales

Fueled by new product, lower vehicle prices and a new free maintenance plan, Jaguar sales likely will equal those of its more successful sibling Land Rover in about five years, the brands' regional chief says.

Joe Eberhardt, CEO of Jaguar Land Rover North America, said the lower prices and 5-year/60,000-mile service plan are being offered to help erase lingering consumer doubts about Jaguar's affordability and quality.

Jaguar has scored high in industry surveys of initial quality and customer service. But its sales have lagged those of Land Rover, which has a 10- to 15-day supply of most vehicles. Last year, Jaguar sold 15,773 vehicles in the United States and Land Rover sold 51,645.

Jaguar is making the right moves to gain equal results, he said.

"From a product substance, we are every bit as competitive as our main rivals," Eberhardt said. "I can say we do not have to hide from anybody in terms of how good our cars are."

Still, he said, many consumers think, "I can't afford them, and if I could, it is risky" because of perceived quality problems. Those attitudes will take time to change, Eberhardt said.

Jaguar's two-pronged solution, which will launch with the 2016 model year:

1. EliteCare, a free 5-year/60,000-mile scheduled maintenance program that includes roadside assistance and Jaguar's new InControl Protect and InControl Remote features that allow the owner to monitor the car and perform various functions using an app on a smartphone.

2. Price cuts or standard equipment additions. Jaguar is lowering its vehicles' base prices or increasing the value of their standard equipment to make "all models significantly more affordable," Eberhardt said.

For instance, the base price on the redesigned XF midsize sedan has been cut 9 percent, or $5,275, to $52,895, including shipping.

Equipment levels across the range have been improved 10 to 20 percent. Base prices on the F-Type coupe or convertible remain the same, but the cars have between $4,000 and $12,000 of additional standard equipment, depending on the model.

The brand also is launching three equipment packages -- premium, prestige and R-Sport -- to simplify ordering, Eberhardt said.

Jaguar is making the moves as it prepares to launch two vehicles into new segments -- the XE compact sedan in April and the F-Pace midsize crossover in May. Starting next year, Jaguar expects these vehicles to represent 60 percent of its U.S. sales, Eberhardt said.

By adding the XE and F-Pace, Jaguar's potential buyer pool in the United States will grow to 1.2 million from today's 400,000, he said.

Eberhardt said Jaguar would announce F-Pace pricing when the crossover is unveiled next week at the Frankfurt auto show. He disclosed no details but said the F-Pace will be priced between the XE and the XF sedans.

Jaguar plans to launch a major marketing campaign to promote its pricing and new maintenance plan, and plans to take a test drive program on the road to seven major cities starting this year.

They include Los Angeles, Dallas, Chicago, Miami and New York. Eberhardt said Jaguar hopes the road tour will have at least 10,000 visitors.