2020 Defender Spy Shots....

mpinco

Expedition Leader
Recent articles are of JLR's 'cash crash' and a need for a $1 Billion dollar cash infusion. Now that the Range Rover SV Coupe and Discovery SVX have been cancelled I wouldn't be surprised to see other 'SVO' models like the Velar equivalent cancelled, maybe even the Velar itself. As today's Forbes article notes "Others criticize the Land Rover operation for undermining its own success by persisting with an overlapping product range which confuses buyers and cannibalizes profits. " That same article questions the ability of JLR management to execute on the needed rapid changes and that management changes are needed. Feels like the need for slash and burn of models and management.

Remember when Land Rover was planning on three distinct product lines - Range Rover, Discovery and Defender. Well the current incarnation of Range Rover and Discovery all look the same which speaks to the 'overlapping product range' issue driven by design management. The Discovery Sport is just a smaller Discovery. Does Land Rover need to reduce models (Velar, Discovery Sport) to free up cash for Defender and addressing overall quality issues? Probably. As for the Evoque, it does sell well to select consumer even though I have driven one as a loaner and would never buy one so on the bubble if that model needs to see the axe.

In summary more models to be discontinued and management / design direction changes are needed. Somewhat of a return to their roots similar to Ford.
 

J!m

Active member
This is pretty much how I see it as well.

They got so far out in the weeds, I guess banking on the China market?

They just opened the largest LR dealership in CT in North Haven... someone’s gonna be pissed if JLR packs it in!
 
...Well the current incarnation of Range Rover and Discovery all look the same which speaks to the 'overlapping product range' issue driven by design management. The Discovery Sport is just a smaller Discovery. Does Land Rover need to reduce models (Velar, Discovery Sport) to free up cash for Defender and addressing overall quality issues? Probably.

In summary more models to be discontinued and management / design direction changes are needed. Somewhat of a return to their roots similar to Ford.
The overlap they're referring to is between models such as the E-Pace and Evoque, the F-Pace and the Velar and the Disco Sport. When you talk to a dealer, they even tout the fact that they are mechanically identical under the sheet metal, they only differ in interior appointments and exterior design. So JLR have to maintain two different production lines to produce effectively the same vehicle. They're not body-on-frame, so you can't branch production near the end - you have to have two parallel lines much farther back in the production cycle. This is very expensive to maintain - in personnel and infrastructure. Then buyers are split - do I want an Evoque or an E-Pace? Velar or F-Pace? What's the difference? This results in sales cannibalism between models and divides revenue that must be applied to each product line. Jaguar is supposed to be near introducing the J-Pace, which would be based on the full-fat Range Rover. So add that to the list.

The Disco Sport and the Disco are very different - not even in the same league of vehicle. There's no buyer confusion between those models.

Does JLR need to reduce their offerings? Probably. I personally would like to see Jaguar become a valid Tesla competitor while the Land Rover side remain focused on ultraluxury, high performance SUVs (Range Rover) and off-road superiority (Land Rover).
 
The overlap they're referring to is between models such as the E-Pace and Evoque, the F-Pace and the Velar and the Disco Sport. When you talk to a dealer, they even tout the fact that they are mechanically identical under the sheet metal, they only differ in interior appointments and exterior design. ........ The Disco Sport and the Disco are very different - not even in the same league of vehicle. .............
I was speaking of the design language overlap. While features of the Discovery and Discovery Sport may be different, the styling is virtually the same. Agree the underlying platforms are different within a brand but leveraged across brands.

The 'design language' of the automotive industry for the SUV / CUV has collapsed to nearly identical. I really don't see how any manufacturer can differentiate themselves. Almost just a commodity. The smartphone industry is struggling with similar issues as high end models have now seen 2 or 3 price cuts in an attempt to drive sales. Apple and Jaguar have similar issues as they are seen as luxury brands. Technology in itself is commoditization.

Electrification may be a future technology but it will not drive volumes to serve the financial bottom line. Telsa is currently a money pit and would bury JLR and Tata. They are giving E-Paces away on Wheel of Fortune.

China auto sales continue to decline.

JLR/Tata's borrowing cost have soared. Wouldn't be surprised to see JLR partner with another brand and/or look for government assistance on the back of blaming "Brexit".
 
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