Jaguar to Lure U.S. Buyers With Downsized Engines, AWD

DETROIT – Jaguar has been “very quiet” in the U.S. over the past several years, and now the luxury auto maker is looking to make some noise, a top North American executive says.

“We’re in a position with great product, with more on the way, and quality is coming around and consumers are recognizing it,” Rob Filipovic, general manager-product planning Jaguar North America, says at a media event here. “The next big thing is getting our voice out there and making more people aware of what (we have).”

What Jaguar has is an expanding lineup anchored by the well-received XF sport sedan, a redesigned XJ flagship sedan and upcoming F-Type sports car.

Jaguar’s U.S. sales in 2012 slipped 2.2% from prior-year to 12,011 units, according to WardsAuto data. The top-selling model was the XF, up 4.2% to 5,526. Deliveries were flat in January at 1,029.

Despite the slight drop in sales last year, Filipovic is confident Jaguar is on the rebound, pointing to the F-Type. The car may not sell in great quantities, but it has helped the brand return to relevance and attract consumers who previously did not shop Jaguar.

“F-Type is appealing to a completely new customer group,” he says. “We’ve already seen this in the first hand-raisers, where 80% are new to the brand.”

Filipovic admits that 2-seat luxury roadsters are a niche segment, with just a handful of competitors such as the Porsche Boxster, Mercedes SLK and BMW Z4. But there’s room for the F-Type, he insists.

“We’re one of the original sports-car makers, so the fact we don’t have one right now is really a travesty,” Filipovic says. “Our intent is to conquest with this car.”

The F-Type, arriving in the U.S. this spring and powered by either a 3.0L supercharged V-6 making 340 hp or a 5.0L supercharged V-8 producing 495 hp, starts at $69,000.

Unlike the XK, which Filipovic says is a performance-oriented grand-touring car, the F-Type is pure sports car. “In terms of its track capabilities, it’s on a different level than (the) XK and it was intended that way.”

In addition to the F-Type, Jaguar’s strategy to attract more U.S. buyers to the brand includes downsized powertrains and all-wheel drive, two technologies it has lacked.

Filipovic says having a heavy V-8 and rear-wheel-drive lineup has been a hindrance to the auto maker’s U.S. expansion plans.

“With all the new technologies that are out there, between our 2.0L turbo 4-cyl. and 3.0L supercharged V-6, we’re talking to a portion of the market that has never considered us (because) of fuel economy and cost of ownership,” he says.

“This is making people understand we’re not just a top-end V-8 segment anymore. Now they know there is more in the showroom for them to consider.”

AWD is expected to boost Jaguar sales in colder regions, where competitors’ AWD-equipped vehicles account for more than 50% of their sales, the auto maker says.

Jaguar offers AWD on XJ and XF models equipped with the 3.0L supercharged V-6 engine. The system’s torque split can range from most of the power going to the rear to as much as 50% to the front if the rear wheels have lost grip.

Although AWD only is offered on two models, Filipovic says the system will migrate to other vehicles. “Today we have AWD showing up in showrooms, and there is quite a bit of pent-up demand. That’s the first critical portion of us having a complete national footprint in this large (U.S.) market.”

To help reintroduce the brand to the U.S., Jaguar last year launched its “Alive Drive Experience” campaign that so far has traveled to 18 cities, where it invites guests to drive its vehicles on closed-circuit test courses with experienced instructors.

The test drives are running in conjunction with a similarly branded marketing campaign that focuses largely on social-media websites.

Meanwhile, Jaguar is studying new segments in which to enter. Filipovic says Tata, the Indian conglomerate that owns Jaguar and sister-brand Land Rover, believes there are “gaping holes in our portfolio.”

While declining to reveal what segments are being considered, he does say a new product will be introduced in the U.S. later this year.

Filipovic does not rule out the possibility of a cross/utility vehicle or SUV, although that would put the brand in direct competition with Land Rover. “There are opportunities for Jaguar to go to other price segments and sized vehicles,” he says.

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