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“Jaguar-Land Rover, which is owned by India’s Tata Motors , made a $4 billion write-down Thursday to cut the value of capitalized investments. This is essentially a recognition that it won’t make the money it previously expected to from product spending. The U.K.’s largest car maker has been hit hard by the downturn in China as well as its reliance on demonized diesel technology.”

From today’s WSJ
 

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Discussion Starter #25
This is interesting, combined with the SVR thread about lack of demo models and advertising for the SVR, I am beginning to hesitate on my order.
 

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That's what they said about Indian motorcycle... Which is currently whipping HD's A$$. Local HD dealer is about to go out of business, and local Indian dealer is seriously looking into opening a 2nd location...


Glad I got out of Bikes 4-5 yrs ago...
 

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Discussion Starter #31
Yes, this is grim. I am seriously considering letting go of my SVR order. I do not want to be stuck with a high-tech vehicle from a manufacturer that is possibly going away. I know, ride it out, the sky is not falling, but even a buy-out by one of the other makers would cause issues. I am already over two hours from a dealership, if part of the cost cutting involves closing the less profitable ones, well.....
 

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According to the Bloomberg "Wheels have come off" article, JLR free flow cash drastically reduced in 2016. 2016 is the year they started putting their new infotainment system in vehicles. Therefore, the reason they are doing poorly is because of their infotainment system. Unequivocal proof.
 

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Found this just a few moments ago:

“Automotive News Europe has uncovered what could turn out to be the real problem: quality control issues.

Back in 2014, JLR began production at a joint venture with China’s Chery Automotive at a facility in eastern China. From 2015 to 2017, five JLR vehicles – the Land Rover Evoque and Discovery, and Jaguar XFL, XEL, and E-Pace – were assembled there for the Chinese market. Local production was very convenient for JLR because it allowed for necessary vehicle modifications for the Chinese market. JLR was also able to avoid paying a 25 percent tariff. Sales surged in China and things were looking good. Or so it seemed.

Product quality was never properly addressed and customers began reporting a number of defects. In 2017, JLR issued 13 recalls for China alone. All involved engine, instrument panel, airbags, and battery defects.

A total of 106,000 vehicles were recalled, equivalent to over 70 percent of its 2017 sales. Again, all vehicles were built in China, so the argument JLR tried to make blaming US-China trade tensions doesn’t hold up. Furthermore, Audi, BMW, Mercedes-Benz, Volvo, Lexus, and even Cadillac posted solid sales growth in China last year.

To summarize, JLR’s reputation in China has taken a major hit because of ongoing quality issues that have yet to be resolved. The market is there for high-end luxury cars and SUVs, but Chinese buyers are not stupid. They won’t buy a specific brand because of, say, heritage, only. Consumers, no matter where they live, want a quality product and JLR China failed to deliver. It’s now paying the price.”
 

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As of right now, I'm sticking with my SVR order since there is nothing else out there that I like that is configured similarly with an engine like that. I still have a little less than 3 weeks before delivery, so I guess that could change, but I've been looking forward to this one for so long that perhaps I'll leverage JLR's troubles to get a little more of a discount.
 

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On January 23, 2015 the stock was at a 5 year high of $50.34 USD. Today it opened at $11.32 USD does that tell you something?
It tells me to buy now (low) and sell later (when it’s back up). I think TATA is commitment to the JLR brand. With that said, if it were to go up for sale, I feel the U.K. would step in and buy the company.

DP
 

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On January 23, 2015 the stock was at a 5 year high of $50.34 USD. Today it opened at $11.32 USD does that tell you something?
It tells me to buy now (low) and sell later (when it’s back up). I think TATA is commitment to the JLR brand. With that said, if it were to go up for sale, I feel the U.K. would step in and buy the company.

DP
I don’t think the U.K. can afford to do so with Brexit looming on the horizon (like you know, in a month).
 

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Yes, this is grim. I am seriously considering letting go of my SVR order. I do not want to be stuck with a high-tech vehicle from a manufacturer that is possibly going away. I know, ride it out, the sky is not falling, but even a buy-out by one of the other makers would cause issues. I am already over two hours from a dealership, if part of the cost cutting involves closing the less profitable ones, well.....
I am also considering dropping our current 2018 F Pace S. 15k miles on it, this is our second one due to QC issues and I don’t care enough to be stuck with a car with a manufacturer and dealer network that is going down. The dealer experience already blows; why bother? I may take the get-out-now approach.

Which is unfortunate as I’ve wanted to get a new car for myself, but may have to switch priorities briefly.
 
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