Jaguar facing legal action over EV rebirth

Jaguar Land Rover (JLR) dealers in Canada are reportedly gearing up for joint legal action in response to the company’s move to an electric-only lineup for the Jaguar brand.

This strategy shift will see the brand repositioned as a more exclusive marque with higher prices and a smaller lineup.

A shift upmarket will likely mean lower volume and fewer dealers, something Carscoops reports has drawn the ire of JLR’s Canadian dealer network and kickstarted intentions to file a joint lawsuit against the company.

Jaguar has reportedly planned to lower its sales targets from 8000 units per year to just 700, which would bring with it a transition to an online retail model.

Dealers have been attempting to resolve that issue with JLR Canada branch, though they’re reportedly prepared to take legal action if a resolution isn’t reached in the coming weeks.

JLR’s dealer numbers have increased since 2013, when the company announced a global expansion plan and its goal to sell one million units globally. That plan attracted Canadian dealers, with annual sales goals of 12,000 for Land Rover and 8000 for Jaguar set in the country.

Dealerships invested in expansions that would allow both brands to be sold under the same roof, with an estimate of around US$20 million (A$30.3 million) typically spent on upgrades.

Dealers managed to sell 4620 Jaguars in 2017, but that number fell to 1118 in 2023.

Canadian dealers are reportedly uncertain the brand will be able to meet the updated goal of 700 units.

Jaguar’s first EV in its upmarket transition is expected to be revealed this year ahead of a 2025 market debut, though it’s set to cost upwards of US$125,000 (A$190,000).

In light of the proposed lower volumes, dealers in the United States have been offered the chance to drop the Jaguar portion of their franchises in return for additional allocations of Land Rovers.

Carscoops reports a similar strategy was being employed in Canada, which included the ability to retain servicing and the sale of certified used Jaguars.

That offer has not been taken positively by Canadian dealers, likely as a result of the significant investment in their dealerships over the past 10 years.

Then-JLR CEO Thierry Bollore announced in February 2021 that Jaguar would become a more exclusive, EV-only brand by 2025 and swung the axe on what was supposed to be the first electric XJ.

The entire Jaguar lineup is in the process of being phased out, with the brand looking beyond the German-dominated luxury segment and towards the likes of ultra-luxury brands like Bentley.

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