Premium Segment Relatively Stable
Premium Segment Relatively Stable

Video: Premium Segment Relatively Stable

Video: Premium Segment Relatively Stable
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Jaguar has grown steadily since the 2009 crisis. In an interview with Autogazette, Jaguar Sales Director Axel Ecke talks about the goals and new models of the British premium brand.

The car maker Jaguar is unaffected by the sales crisis. “We are of course also noticing that the economic conditions in Germany are becoming tighter and competitive pressure is increasing. But the volume segment is particularly affected. The premium segment in which Jaguar and Land Rover are positioned is relatively stable, which gives us a positive outlook into the new year,”said Jaguar Sales Director Axel Ecke in an interview with Autogazette.

In light of this, Ecke is confident that the target of 15,000 models originally set for 2014 will likely be achieved sooner. “We are of course also noticing that the economic conditions in Germany are becoming more tense and that competitive pressure is increasing. But the volume segment is particularly affected. The premium segment in which Jaguar and Land Rover are positioned is relatively stable, which gives us a positive outlook into the new year."

Great importance for Jaguar XF Sportbrake

In the next five years, 40 new models are to promote further growth. The Jaguar XF Sportbrake is very important. “The XF Sportbrake will develop relevance from a volume perspective. With the XF Sportbrake, we would also like to appeal to tradespeople with a small or medium-sized vehicle fleet,”continued Ecke.

However, the F-Type coming onto the market in 2013 will be more important “from an image point of view”. Corner sees it as the greatest challenge for the brand to «derive corresponding product awareness from the awareness of the Jaguar brand.» Corner is not yet able to confirm whether - as with Land Rover - a vehicle with a diesel hybrid drive will help in the immediate future, but "it is probably no coincidence that the Limo Green concept is based on the XJ."

40 new models in the next five years

Autogazette: Mr. Corner, what does the word “sales crisis” mean to you?

Axel Ecke: You can read the word “sales crisis” a lot in the press at the moment. We are of course also noticing that the economic conditions in Germany are becoming tighter and competitive pressure is increasing. But the volume segment is particularly affected. The premium segment in which Jaguar and Land Rover are positioned is relatively stable, which gives us a positive outlook into the new year.

Autogazette: Eighteen months ago, the target was set that Jaguar and Land Rover would make 15,000 sales per year over the next four years. This goal could fall in the coming year?

Corner:We don't want to be too full of our mouths, but with the new models it is quite a realistic goal that we will be working towards. Jaguar and Land Rover are over 13,000 vehicles this year after ten months. But the number of pieces alone is not that important to us. Successful, i.e. profitable, market cultivation is much more important, for example shortly with the introduction of the new XF Sportbrake and the Range Rover, as well as the Jaguar F-Type in the middle of next year.

Autogazette: That means new destinations will be issued?

Corner: No. We set up a five-year plan for Germany in 2010 and we are working on it. However, we do not give an exact forecast because the market situation is difficult to assess.

Autogazette:And for 2014, when the 15,000 units sold are over?

Corner: The five-year plan is based on growth, including through new models. Our CEO Dr. Speth has announced around 40 new models in the next five years and our plans are accordingly ambitious.

Would like to continue growing with new models

The Jaguar F-Type will initially be launched as a roadster
The Jaguar F-Type will initially be launched as a roadster

Autogazette: Is there the goal of having a one before the decimal point in terms of market share with both brands at some point?

Corner: Jaguar and Land Rover are positioned in the premium segments, so it makes little sense to talk about the total market share.

Autogazette: And the segment share is satisfactory?

Corner: Jaguar is the largest import brand in the premium segment. Our sports sedan in the upper middle class, the Jaguar XF, which is available with the new four-cylinder diesel at prices starting at 45,900 euros, has developed very well. But as I said, we want to keep growing with the new models.

Autogazette:The Evoque has recently become the volume maker for Range Rover. Will the XF Sportbrake take on that role for Jaguar?

Corner: The XF Sportbrake will develop a relevance from a volume point of view. The vehicle will be recognizable on the street scene. From an image perspective, however, the new F-Type will be more important for the Jaguar brand in the coming year.

Jaguar stands for luxury, exclusivity and individuality

With the XF Sportbrake, Jaguar returns to the estate segment
With the XF Sportbrake, Jaguar returns to the estate segment

Autogazette: How do you define Jaguar's image ? Does the brand still have the stigma of the extremely expensive?

Corner: We are very competitive with our offer, as our prices, adjusted for equipment, are always slightly below the German competitor. But Jaguar stands for luxury, exclusivity and individuality and in the past Jaguar was mainly present in Germany with the luxurious XJ and XK models. But Jaguar has evolved and is now a modern and exciting brand that also offers attractive models in the medium segment. These are still expressions of a particular lifestyle, but the brand is now accessible to a wider audience.

Autogazette: Will be the Sportbrakeexpress a certain lifestyle, especially among fleet customers?

Corner: The share of station wagons in the premium segment is around 60 percent, of which 45 percent are in commercial use. We therefore expect growth opportunities here as well. But I assume that we will also appeal to many private customers with the attractive and elegant XF Sportbrake.

Autogazette: But aren't station wagons particularly interesting for the fleet market?

Corner: Jaguar per se always has a higher share of private customers than the competition. But with the XF Sportbrake we would also like to appeal to traders with a small or medium-sized vehicle fleet. We also offer our new full leasing for this purpose.

Autogazette:Are there efforts to reduce the distance to German competitors among fleet customers?

Corner: We will not come close from the point of view of the number of units. With Jaguar we are addressing the management floors in the company. We have no volume ambitions, but want to increase our relevance.

Autogazette: what does it mean?

Corner: We see opportunities in the small and medium-sized fleets mentioned above. With large fleets, we do not see ourselves in a position to keep up with our competitors in terms of physical fitness or logistical aspects. But that is not our intention either.

Jaguar will surprise you with new concepts and ideas

The Jaguar XJ L is 5.25 meters long
The Jaguar XJ L is 5.25 meters long

Autogazette: So Jaguar is fighting for fourth place with Volvo?

Corner: It is important to us that we are profitable and grow profitably and that we maintain our core values.

Autogazette: Do you see the brand on the way?

Corner: See you on the right track. The XF is growing and the XF Sportbrake is completely new in a segment that has a combination share of almost 60 percent. We are therefore optimistic and confident enough to be able to expand our market share.

Autogazette: Has the model offensive ended with the introduction of the XF Sportbrake and the F-Type or will there be other new models?

Corner:The next year is all about the F-Type. But Jaguar will continue to surprise with new concepts and ideas in the years to come. We will also introduce all-wheel drive technology at Jaguar, a first for the brand.

Premium segment relatively stable

Autogazette: The gap between rich and poor is widening in Germany too. Are the social changes already noticeable or will there be some later?

Corner: Since the year of the crisis in 2009, the premium segment has proven to be relatively stable. And the SUV segment in particular continues to grow. If you can believe the experts, the premium segment will remain stable in the coming period.

Autogazette: Do more people now not only know the brand, but also the Jaguar models?

Corner:It has improved over the years, but we're not where we want to be. The greatest challenge for us is to derive and also to experience corresponding product awareness from the awareness of the Jaguar brand. Because anyone who has ever sat in a Jaguar is a potential customer.

Autogazette: Is that why the dealers should also be increased further?

Corner: We will expand the dealer network from the current 63 Jaguar locations to 85 by 2015. Our preferred dealer structure is the dual brand dealer, i.e. together with Land Rover.

Autogazette: How many are there currently dual brand dealers?

Corner: Of the 63 locations, 60 also have Land Rover in their product range.

Do not close ourselves off to future technologies

The Jaguar study Limo Green is based on a diesel hybrid drive
The Jaguar study Limo Green is based on a diesel hybrid drive

Autogazette: A diesel hybrid is coming, and a model with a range extender is also under discussion. Is there a clear path for Jaguar Land Rover as to which alternative drives will determine the future or does that still fall under the topic of “playground”?

Corner: Our Limo Green concept based on the XJ was a start with alternative drives and we will show further studies in this sector. We are not closing ourselves to future technologies, but I cannot say anything specific yet.

Autogazette: But a hybrid car is quite specific…

Corner: … I can't confirm that for Jaguar today.

Autogazette:A Range Rover diesel hybrid is coming next year. Wouldn't this drive be a certain incentive for Jaguar customers as well, since hybrid plays an increasingly important role in the premium segment?

Corner: It is probably no coincidence that the Limo Green concept is based on the XJ…

Auto Gazette: … and then replace the XF Sportbrake as a new volume model?

Corner: We are now assuming a successful introduction of the XF Sportbrake. And it has the potential to become a volume model in Germany.

The interview with Axel Ecke was conducted by Thomas Flehmer

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