Jaguar winds down as Land Rover powers up

Massive change is underway this year at the nation’s 395 Jaguar-Land Rover dealers. More dealers will surrender their Jaguar franchises this year and either transition to service or be done with Jaguar. They can do that because Land Rover is booming, and with the easing of supply chain snags, production is increasing.

With Jaguar moving far upmarket in 2025 with a new generation of six-figure high-performance electric luxury vehicles, the brand will look more like Aston Martin or Bentley than BMW, which Jaguar has been chasing for decades.

Dan Fields, 52, took the wheel in December as chairman of the 12-member JLR Retailer Cabinet. As president of Fields Auto Group in Evanston, Ill., he oversees a dealership group with more than 30 stores in four states, including five Land Rover stores, three Jaguar stores and two Jaguar service centers.

Fields, whose family-owned company has been a Jaguar-Land Rover dealer for more than three decades, spoke with Staff Reporter Richard Truett. Here are edited excerpts.

Q: 2023 was a year of significant change for Jaguar Land Rover dealers, and there’s more coming this year as the Jaguar dealer count shrinks and as the current lineup completes its last full year on the market. What’s the mood of the dealer network? 

A: I wish I could say I communicate with every single dealer. We are trying to do a better job communicating. I do hear from a lot of the local dealers. 

There is a tremendous optimism about the Land Rover brand. And, of course, there’s some apprehension about the Jaguar brand. But I think that’s to be expected. 

The Land Rover brand just keeps surprising us with product lines that we, as dealers in the United States, question what they’re doing with certain products. Why would you try that here? But of all the brands, I can’t think of another that’s pushed on those ropes and been more successful than Land Rover over the past few years. And it’s remarkable, really. 

Despite the fact that you’re going to see fewer Jaguar models in 2024 because F-Type production ends this year, interest rates are high, and all the other things that you’re dealing with, the outlook is pretty positive, you’d say? 

The current Jaguar models are selling well. At NADA, I think the cabinet will see the first iterations of what the Jaguar showroom will look like, for example, more about the first car, and maybe some future cars. So, yeah, that’s exciting because we’ve been all waiting for that.

For the dealers with dual showrooms under one roof who are surrendering their Jaguar franchises, what becomes of the Jaguar side? Has JLR provided any guidance on using that space? Can that area be used for Range Rovers or maybe certified pre-owned sales?

Right now, it is not really an issue. I think there’s about 50 dealers who have surrendered their Jaguar franchises. But you’re right on the money. It can be set up as a CPO showroom or as a showroom to separate the brand pillars — Defender, Range Rover and Discovery. I have two dealerships where we surrendered the Jaguar franchise and we use that area as a Range Rover showroom — if we’re lucky enough to have one that’s getting delivered. CPO has become a great business and that’s also a tough supply.

Looks like there’s about a year or so left with the current Jaguar lineup. Have you gotten any details yet from JLR on how it all winds down? Do the vehicles go away one at a time? How is that going to play out?

That’s one of the reasons we’re meeting at NADA, to discuss the specifics of that phaseout. I believe the volume models will be phased out at the same time because I’m pretty sure those facilities will be retooled and made ready for the new Jaguars. 

You mentioned that there’s still demand for the current Jaguars. What’s driving that? Are customers buying their last cars in the current model lineup, or are the cars selling because of the deal?

Jaguar has a loyal following, and they are really good cars. It’s always been a kind of a mystery to me why the current generation didn’t do better. Maybe it was just the timing of the market. 

Look at all the companies that have given up sedans because they don’t sell. It’s not the product. It’s consumer preferences shifting. The sedan market, in general, has become very difficult. So, rethinking your sedan strategy is probably a good thing. 

Obviously, there were investments made in Land Rover that made a lot of sense. 

Range Rovers seem like a natural product to switch Jaguar sedan buyers into. The level of luxury and the performance is pretty much the same. Have you had any success in converting Jaguar customers to Range Rovers? And do you get any guidelines from JLR on how to do that?

That is the least of our problems with the Range Rover supply situation. I have hundreds of Range Rovers sold. And so we’re really excited to see the supply break loose a little bit this year. 

But it’s really important to cultivate new Range Rover business. I don’t know the statistics, but I am certain there are a lot of XJ customers who have migrated to Range Rover. The brand is iconic in the luxury market. I mean, there’s just nothing out there like a Range Rover.

What can you tell us about the new Jaguars coming in 2025?

I’ve asked [JLR North American CEO] Joe Eberhardt, “Are you going after Bentley?” And he said, no. So, I think it’s more niche than that. I’m a Bentley dealer, and I think that is interesting. I like Joe’s strategy. I think he’s a great strategist. For example, what he told me about Land Rover a few years ago. He said, “I want to be the Ferrari of SUVs.” That’s great strategy. Joe and his team understand brand strategy. 

But one thing, of course, we’re all wondering about is that expensive electric cars have not been the greatest success so far. Maybe that’s because [manufacturers] didn’t take enough time to think them through. Right now, it’s a very interesting market with pockets of success. BMW is having real success with some of its cars. It’s a little bit payment driven, but it’s also style driven.  

The later to the market, the more you’ve been able to take advantage of the new technologies, the higher [driving] ranges, you know, so in that way, it’s a good thing. If you look at demand for the electric Range Rover and hybrid Range Rover, it’s tremendous. That would be some indication of what’s ahead for Jaguar demand. 

Does JLR have the Jaguar dealer count about where it wants it, or do you expect more dealers to surrender the franchise? 

I do expect more. Right now, there would be too many dealers for the number of cars we are going to get in our market. I think anybody would say that. So, there will be more attrition. 

This is just a guess, but I do expect some dealers will decide these cars are not right for their markets. 

We talked about that as a council. It’s a decision that will be looked at it very much like this: Are you are in a strong, premium car market? We will continue with JLR to try to find ways to make [ending the franchise] a fair, reasonable thing. There’s nobody in the organization who wants to punish anybody who made the decision to keep the franchise. 

Let’s talk about Land Rover. We’re seeing an unprecedented number of luxury and super rugged SUVs putting tires on turf Land Rover once owned exclusively. How is that affecting business? Are you getting cross-shopped more than ever? 

I don’t have those statistics, but I would imagine certainly there is more cross shopping. I might be a little jaded here, but there’s nothing like a Land Rover Defender. The new Defender is so good, so rugged that it’s as good in its market as the Range Rover is in the luxury market. 

We’re going to have a good supply of Defenders in 2024, the most Defenders we’ve ever had. And we’re excited because there’s going to be a lot of cool special editions. There’s a lot of pressure on every part of the market, but Land Rover has committed a lot of resources to Defender. That’s one of the brand’s pillars. You’ve probably seen the commercials about Defender as a brand, so that represents dedication by JLR. As a Land Rover fan and Defender fan in particular, I’m excited. 

If inventory levels increase, how will that affect incentives? 

With the Range Rover that’s not going to be an issue for a while. I would like to have to deal with that problem with Range Rover. 

But with Defender, well, we’ll see. I think right now incentives are oriented towards interest rates which now look like they are going to go down a little bit. So that would help. Certain cars need a lower payment, but we are not there yet because there is really strong demand. 

If there’s a weak link in the Land Rover lineup, it would be the Discovery. What does JLR have to do with the next generation Discovery to so it has more appeal?

What it really needs to become is our family vehicle, and that’s in line with what the brand pillar stands for. I’m expecting the next products to be more along that line. Land Rovers are going to have more off-road capability than your average SUV. But I think Discovery will become more of an affordable family car that’s in sync with the brand than what it represents right now. And that’s what I would look for in a future product. 

The three-row Range Rover opened a new segment for the vehicle. How’s it doing?

That’s something we’ve asked for for three decades. I don’t know the exact percentage, but it’s selling really well. I mean, there’s nothing in the Range Rover lineup that’s not completely sold out. 

As the inventory levels increase this year, especially with the Range Rover, do you think that bespoke ordering will continue at the current levels or will it decrease if people can get their vehicle right away?

If it’s really easy to get a Range Rover, there are going to be fewer bespoke orders. But I think bespoke ordering will continue. 

I think we could develop a separate business like we have at our Rolls-Royce store where people that want to order a car can wait for a car. They have enough vehicles in their garage, that, they can order that bespoke vehicle. And I think there’s opportunities for us to build some of these special editions and allow the owners access to them. 

One of the things the [company will do for the] Range Rover [to promote bespoke orders] is they’re going to focus a lot more of their marketing on events. And these events are not just going to be in South Florida and Monterey. They’re going to be all over the country and in the places where JLR knows its customers and prospects. We expect in Vegas we’ll see a more specific event schedule and a really exciting, heavy commitment, a lot of dollars to event marketing for Range Rover. 

I think it will enable JLR to sell some of these bespoke vehicles. 

So one of the ideas is for us to bring customers to these events and expose them to vehicles that have limited access. That’s an example of how Range Rover is going upwards, and trying to sell those high-end cars, which I think is really exciting. It’s a great opportunity for both the dealer and for JLR. 

Did JLR dealers get any help from JLR Financial to deal with high interest rates?

We had some special financing, and that’s driven business. That’s what I’ve marketed. We’ve kind of weathered the storm like the other manufacturers. As you know, nobody’s had a great payment for the past few months. Hopefully that will get a little better. Especially if interest rates drop this year. 

Are there any concerns among JLR dealers about direct sales to customers? It seems like the new Jaguar lineup would be ripe for that.

I have every luxury brand in my portfolio except Audi, and there’s no brand I’m less worried about than JLR. Joe and his team have committed to the dealer network in the United States. We have a great relationship.
 
Yeah, they had a perfect opportunity to do it, too. They do have the new Jaguar and probably could have pulled it off and they didn’t. They are dedicated to their dealers. JLR has never wanted to do direct sales. They’ve just wanted to make it easier for a customer to access inventory through the dealer body. And, frankly, we are cooperating as long as it was within the confines of the law. We want to have the best experience for the customer, especially considering how difficult is to get a Range Rover.