Jaguar Unveils First AWD System

NEW YORK – Jaguar conjures up a snowstorm on a sweltering summer’s day here to unveil its first all-wheel-drive system, to be available on the upcoming ’13 XJ sedan.

The AWD model is presented on an outdoor ice-skating rink set up by the British importer near the Hudson River.

“All-wheel drive will allow us to compete in segments 10 times larger than we compete in today,” says Andy Goss, CEO of Jaguar Land Rover North America.

More than 80% of rival luxury cars sold in northern states offer AWD, he says, while Jaguar models up to now have been exclusively rear-wheel drive.

The new XJ sedan will debut in October, while the AWD system, new engines and an 8-speed automatic transmission launches will be spread out over a 3-month period. The V-6 will come first, followed by the I-4 and later the AWD system.

Jaguar sales have “a bit of momentum going lately,” says David Pryor, brand vice president-Jaguar Cars North America. Deliveries in the first seven months were up 1.5% from like-2011. “I'm confident we'll exceed the 12,276 units we sold in 2011 this year,” he tells WardsAuto.

Pryor declines to forecast exact numbers, but says the British brand, owned by Indian auto maker Tata, could approach 15,000 units this year and certainly will drive past that mark in 2013.

Jaguar's 3-model portfolio consists of the XF sports sedan, which accounts for 40% of sales, the XJ that also captures 40% of volume and the XK convertible, which represents about one-fifth of total deliveries. That's similar to 2011, he says.

Sales of the entry-level XF should see a boost from the introduction of a new I-4 engine. Pryor forecasts the 4-cyl. ill capture 15% of new sales, while the V-6 will account for 60%. The remaining 25% of buyers will choose between two V-8s.

Pryor predicts 40% of Jaguar buyers will opt for AWD. “It will be a little higher for the XF,” he says.

Average prices for the XF have been in the high $50,000s, but that’s expected to drop to the mid-$50,000 range with the new 4-cyl. engine. “I don't see a significant shift in the average transaction price of the XJ, which now hovers in the mid-$80,000s,” he says. The XK is priced just under $100,000, on average.

Pryor acknowledges Jaguar is being whipsawed by the incentives battle being waged by the luxury German auto makers.

“Our challenge is that we have to be competitive,” he says, while also emphasizing Jaguar's goal is to be the most aspirational vehicle in the luxury segment. “It's not about volume but how we position our brand.”

Jaguar incentives continue to be competitive with those offered by Audi, BMW and Mercedes-Benz, and Pryor says he is gratified that the flagship XK is outselling the newer Audi A8.

Although Jaguar does not have the budget to compete head-on with the German luxury brands in advertising and promotion, it is using the company’s smaller size to its own advantage, he says. “We can get 1,000 people to experience our entire brand (at an event) because we have a smaller portfolio.”

Pryor also says Jaguar does not plan to grow by introducing small vehicles in the A and B segments. “That's not in our near and mid-term future, because we're not chasing volume.”

But Jaguar did benefit from being featured in the “Mad Men” television series this past season, and Pryor is hopeful the auto maker will figure in next season's series as well.

Meanwhile, Jaguar is promoting the brand with events such as the one here this week and a cooperative venture with Playboy magazine.