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Weekly Recap: Jaguar takes a leap with price cut, new strategy

Jaguar was one of the famous automotive props and plotlines in the now-iconic drama Mad Men. There's a scene where the show's protagonist, Don Draper, deftly undercuts an influential Jaguar dealer by indicating that get-me-in-the-door local radio spots would be an effective way to sell cars like the slinky E-Type. The British executives think this is folly – Draper knows they will – and his advertising strategy wins out over the dealer's approach to move the metal. Jaguar's not doing that, but half a century later in the real world the company is launching plans to make its cars more attainable to new and younger customers like Millenials. These aren't coupons, but this is a leap for Jaguar, which has long banked on sexy styling and its rich motorsports history to overshadow its past mechanical flaws. Put simply, Jaguar is addressing the reasons why people, especially the younger set, don't buy its cars. The 2017 XE will start at $35,895 when it launches next spring – which makes it an attractive buy for a successful, relatively young person. When it's time to move up, the redesigned XF will be more attainable, coming in at $52,895, which is $5,275 less than the 2015 model. The flagship XJ sedan and the enthusiast-oriented F-Type sports car will also get thousands of dollars worth of added standard features, and Jag is actively pitching them as a better value than their competitors. "The Jaguar brand is on the eve of a major transformation that will see it dramatically increase its presence in the United States luxury marketplace with an expanded lineup, pricing focused on the core of the luxury market, and an all-new ownership package with best-in-class coverage," Joe Eberhardt, CEO of Jaguar Land Rover North America, said in a statement. The brand's quality and reliability dings have also lurked in the back of buyers' minds for decades, though that's an outdated notion. Jaguar placed third in J.D. Power's Initial Quality Study in June and was the top-ranked luxury brand in J.D. Power's Customer Service Index in March. Not content, the company is rolling out an enhanced program called Jaguar EliteCare that launches on 2016 models. It offers a five-year, 60,000-mile limited warranty, the longest among its competitors, with free scheduled maintenance during that period. The plan also covers roadside assistance and connectivity features.

2016 Ford F-150 gets propane, CNG conversions

It's a complete mystery if a hybrid Ford F-150 will ever see showrooms, but for buyers looking for an alternative fueling method, Ford has an option ready. For the 2016 model year, the Blue Oval is offering a kit that converts the pickup's 5.0-liter V8 to run on compressed natural gas or propane. The package costs $315 and adds improved valves and valve seats to work with the gaseous fuels. From there, the F-150s go to an upfitter to install the actual fuel tanks, lines, and injectors. Ford estimates this costs $7,500 to $9,500, depending on how much CNG a buyer wants to carry. After the conversion, the tow rating remains the same as running on gasoline, and payload is only reduced by the weight of the system. Ford offered a CNG option on the last-gen F-150's 3.7-liter V6, and sales beat the automaker's forecasts. With the greater grunt available from the V8, the company is expecting the conversion to be even more popular on the new pickups. In times of high fuel prices, CNG models have been a way for fleets to reduce their costs. According to Ford, the average price of natural gas nationwide is $2.11, but it's as low as $1 in some areas. The US Energy Information Administration lists the average for regular gas at $2.57 and diesel at $2.81. Chevrolet and GMC also offer a CNG conversion option on some of their heavy-duty trucks, and Ram does, as well. 2016 F-150 WITH CLASS-EXCLUSIVE COMPRESSED NATURAL GAS, PROPANE CAPABILITY GROWS FORD'S ALTERNATIVE FUEL LEADERSHIP Responding to customer requests, 2016 Ford F-150 with the 5.0-liter V8 engine will offer a gaseous-fuel prep option, making it the only light-duty pickup capable of running on compressed natural gas or propane Ford has sold more than 57,000 vehicles prepped to run on clean, low-cost compressed natural gas and propane – seven times more than all other major U.S. automakers combined – since 2009 Ford has the broadest portfolio of natural gas and propane offerings, including 2016 F-150 and Super Duty trucks, and Transit and Transit Connect vans and wagons Ford Qualified Vehicle Modifiers offer a wide variety of CNG options to help customers find the best, most cost-effective solution to their diverse operating needs Ford, America's truck leader, will offer the 2016 F-150 with an available gaseous-fuel prep package that enables 5.0-liter V8-powered models to run on clean, low-cost compressed natural gas or propane, making Ford the only manufacturer of a CNG/propane-capable half-ton pickup.

Ford profits soar as problems mount

Ford is doing well. It can't make enough examples of its new Fusion, it can barely make enough of the aging F-150, it's getting good brand rankings, people like its turnaround story, it's selling oodles of product and its quarterly profit numbers end in the word "billion." As other high-flying examples have demonstrated over the past few years, though, big numbers can come with problems that aren't exactly small.
Automotive News has published a good "nutshell" report of Ford's progress and problems. The Dearborn automaker's optimistic "general label rule" determination of gas mileage for the C-Max Hybrid has led to lawsuits, hybrid software updates, a downward revision of C-Max fuel economy and millions in rebates. AN notes the C-Max was the "worst-scoring model in this year's J.D. Power Initial Quality Study," but Ford will probably be happy that it managed not to be mentioned further in the study's results after last year's mediocre showing. Its MyTouch and SYNC systems, the bugbears sabotaging Ford's J.D. Power results, have also led to lawsuits, software updates, more software updates and a center console rethink. On top of that, the 1.6-liter EcoBoost in the 2013 Ford Escape that Ford called a "hero" was soon catching fire for three different reasons. And let's not even get into the troubled launch of the Lincoln MKZ.
The Automotive News piece notes that industry observers have been surprised at Ford's stumbles because everything has been looking so good. Nevertheless, there is still the issue of those billions in profits - the company is doing plenty of things, plural, right. Ford says it is tackling its problems, hiring engineers and instituting new quality control processes as part of its effort to find solutions. The test will be to see if in a year from now we begin the discussion of these issues with "Remember when Ford...", or "Problems continue at The Blue Oval."