'Full steam ahead' on Arch JLR facilities program

After some initial resistance, Jaguar and Land Rover dealers are buying in to Jaguar Land Rover's mandatory Arch program, which requires the brands to be housed in separate showrooms under the same roof.

The change can be expensive — as much as $220 per square foot. But the price has been coming down thanks to changes JLR has implemented based on input from the brands' retailer cabinet.

Andy Vine, chairman of the Jaguar Land Rover Retailer Cabinet, says with sales and profitability up at Jaguar and Land Rover stores, it's now "full steam ahead" on Arch after a rough start.

"From a dealer's standpoint, no one likes to spend a bunch of money on facilities," said Vine, who is dealer principal at Jaguar-Land Rover Louisville in Kentucky. "We had some initial resistance from the dealer body, but most of that has settled down. It's important to note that for the past five years, JLR has been blessed with a product onslaught that has brought probably the best return on investment in the industry for U.S. and Canadian dealers.

"So as much as everybody hates to reinvest, I think everyone has come to grips."

Vine estimated that the manufacturer's Canadian dealers will have all of their Arch facilities completed in the next 18 to 24 months. In the U.S., more than 100 dealers are expected to convert in that period, he said.

This summer, Jaguar and Land Rover will mark the 10th anniversary of Ford Motor Co.'s sale of the iconic British brands to India's Tata Motors. Tata has provided a period of stability not seen at the brands since the 1960s.

JLR has been pushing separate Jaguar and Land Rover dealers to sell or buy, and then combine both brands under one roof to be more competitive with luxury brands that sell cars and utility vehicles.

When Arch was introduced two years ago, many dealers balked at the plan. But JLR management listened to dealers' concerns, Vine said.

"The retail council has been heavily involved with the team in North America to continually drive down the cost of Arch. We've gotten some really good results in helping to control costs.

"In my store, my partners and I will have a new Arch facility started in the next 30 to 60 days," he said.

Vine believes the recharged Jaguar and Land Rover brands are deserving of better facilities that are consistent throughout the dealer network.

"You have a parent company that has invested billions in new product," he said. "As much as they have committed, we understand as a dealer body that is our turn to do the same."