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How and why Jaguar designed an electric SUV

Adrian Belew, front man of famed progressive rock band King Crimson and collaborator with Bowie, Zappa, and the Talking Heads, released a prescient song in 1982, but we didn't know exactly how prophetic it was until this week. The song was titled Big Electric Cat, and its lyrics seemed to predict nearly 35 years ago the unveiling of Jaguar's first all-electric vehicle, a production-ready crossover concept with the not-so-ingenious name, I-Pace. She arrives like a limo/Smooth and moving/On the prowl through the crowd/To the beat of the city/She glows in the dark/Wherever she parks/Concrete crumbles and the night rumbles. At first glimpse of the I-Pace, you may not have precisely the same feeling of disintegration as the roadbed Belew mentions, but there is no denying that the new Jag is important for the brand. Flush with investment from its corporate overlords at Tata, the company is on its most robust product offensive ever, rounding out its lineup to become a full-range manufacturer, investing in autonomous driving and projective head-up technologies, nearly doubling global sales, and now going electric. "This is probably the most important car since the E-Type, I really mean that," says Jaguar director of design Ian Callum. "And when we get this car out into production and it gains recognition and popularity, I think history will show it's a significant step for the brand. Not only because we're embracing the future, quite openly and honestly, but because we're going to beat the rest of them. Tesla is there already, but none of the rest." As a challenger brand – one not in the top of mind consideration set like rivals at Mercedes, Audi, or Lexus – Jaguars are made or broken on this kind of differentiation. The I-Pace is certainly distinctive, and looks like nothing else on the road. Like many contemporary Jaguars, its rear three-quarter view is its most compelling, with the slender half-round taillights inspired by the legendary E-Type that were first revived on the F-Type and have since become a signature. But here, the rear end is shaved off and in an angular concavity that seems an effort to take as much mass as possible out of the back, and one that echoes elsewhere on the vehicle: in the scalloped sides, in the continuous path of glass from the base of the front windshield to (almost) the base of the rear liftgate. But especially in the foreshortened and deep-nostriled hood.

Audi, Jag, Kia and Tesla top Strategic Vision 2014 Total Quality Index

A couple weeks ago, J.D. Power released its latest Initial Quality Study, which gave high marks to Porsche, Hyundai and General Motors, with the latter earning more individual IQS awards than any other manufacturer. Now, it's Strategic Vision's turn, and it's doling out its praise not to Porsche, but to Tesla, which wasn't even included in the JD Power IQS.
The Model S was named the best vehicle overall in total quality, while Porsche's corporate brother and endurance-racing rival, Audi, was named the best premium brand, alongside Jaguar. Strategic Vision cited the Q5 and the ancient Q7 for individual segment awards, as well as the A5, which was a mere point off the top of its segment. SV also handed out compliments for the Audi's interior work. The win for the German brand is a nice improvement over its IQS score, with which it landed above the industry average, but solidly mid-pack.
Jaguar was without a segment winner, although SV did say that the Indian-owned English brand had a number of vehicles very near the top of their segments. This is the second significant win for Jag in two weeks, after it finished second overall on the JD Power IQS a few weeks ago.

The UK votes for Brexit and it will impact automakers

It's the first morning after the United Kingdom voted for what's become known as Brexit – that is, to leave the European Union and its tariff-free internal market. Now begins a two-year process in which the UK will have to negotiate with the rest of the EU trading bloc, which is its largest export market, about many things. One of them may be tariffs, and that could severely impact any automaker that builds cars in the UK. This doesn't just mean companies that you think of as British, like Mini and Jaguar. Both of those automakers are owned by foreign companies, incidentally. Mini and Rolls-Royce are owned by BMW, Jaguar and Land Rover by Tata Motors of India, and Bentley by the VW Group. Many other automakers produce cars in the UK for sale within that country and also export to the EU. Tariffs could damage the profits of each of these companies, and perhaps cause them to shift manufacturing out of the UK, significantly damaging the country's resurgent manufacturing industry. Autonews Europe dug up some interesting numbers on that last point. Nissan, the country's second-largest auto producer, builds 475k or so cars in the UK but the vast majority are sent abroad. Toyota built 190k cars last year in Britain, of which 75 percent went to the EU and just 10 percent were sold in the country. Investors are skittish at the news. The value of the pound sterling has plummeted by 8 percent as of this writing, at one point yesterday reaching levels not seen since 1985. Shares at Tata Motors, which counts Jaguar and Land Rover as bright jewels in its portfolio, were off by nearly 12 percent according to Autonews Europe. So what happens next? No one's terribly sure, although the feeling seems to be that the jilted EU will impost tariffs of up to 10 percent on UK exports. It's likely that the UK will reciprocate, and thus it'll be more expensive to buy a European-made car in the UK. Both situations will likely negatively affect the country, as both production of new cars and sales to UK consumers will both fall. Evercore Automotive Research figures the combined damage will be roughly $9b in lost profits to automakers, and an as-of-yet unquantified impact on auto production jobs. Perhaps the EU's leaders in Brussels will be in a better mood in two years, and the process won't devolve into a trade war. In the immediate wake of the Brexit vote, though, the mood is grim, the EU leadership is angry, and investors are spooked.