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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 The brand's quality and reliability dings have also lurked in the back of buyers' minds for decades, though that's an outdated notion.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.

Jaguar recalls 1,500 XJ sedans over brake issues

A problem with the hydraulic brakes on the flagship XJ sedan has prompted Jaguar to issue a recall. The issue, as publicized by the National Highway Traffic Safety Administration in the notice you can read below, revolves around the brake line junctions underneath the affected vehicles, which may leak fluid, thereby reducing the effectiveness of the braking system. The problem only affects an estimated 1,571 units from the 2014 and 2015 model years, manufactured between February 6 and July 23, 2014. Owners of those affected units are being notified to bring their vehicles in to their local Jaguar dealers to have the brake line junctions inspected and tightened. This issue appears to be unrelated to Jaguar's recent recall of several model lines, the XJ included, over a problem with the power steering system. RECALL Subject : Incorrect Torque of Brake Pipe Unions Report Receipt Date: NOV 19, 2014 NHTSA Campaign Number: 14V741000 Component(s): SERVICE BRAKES, HYDRAULIC Potential Number of Units Affected: 1,571 Manufacturer: Jaguar Land Rover North America, LLC SUMMARY: Jaguar Land Rover North America (Jaguar) is recalling certain model year 2014-2015 Jaguar XJ vehicles manufactured February 6, 2014, to July 23, 2014. In the affected vehicles, the brake line junctions under the vehicle may leak brake fluid. CONSEQUENCE: A brake fluid leak may reduce the vehicle's braking ability, requiring additional distance to stop the vehicle, thereby increasing the risk of a crash. REMEDY: Jaguar will notify owners, and dealers will inspect the brake line junctions, tightening them as necessary, free of charge. The recall is expected to begin on January 16, 2015. Owners may contact Jaguar customer service at 1-800-452-4827. Jaguar's number for this recall is J048. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.

Jaguar could replace two of its slow-selling sedans with a compact hatchback

Jaguar needs a home run, and it might merge the slow-selling XE and XF into a single model in a swing for the fences. The company is considering several ways to replace its two smallest sedans, and one option on the table is filling the gaps they'll create with a compact hatchback that would take Jaguar into a segment it's never been in before. Nothing is official yet, and Jaguar still hasn't ruled out developing a direct successor to each model, but British magazine Autocar learned at least two other options are being evaluated. Julian Thomson, the company's design boss, suggested their spot might be filled by a city-friendly hatch that would stretch about 177 inches from bumper to bumper, a figure that would catapult it into a segment dominated by the Audi A3, the BMW 1 Series, and the Mercedes-Benz A-Class. It would lure a new set of customers into the company's global showrooms. "I'd love to do smaller cars, and it feels as though the time is right. Jaguar needs a global product that could appeal to younger buyers, and more females as well," Thomson the publication. Although that's simple on paper, it's a lot more difficult to achieve in real life. "It's a tough sector. You need big numbers, which means big factories, and a big organization to sell them. But that's definitely where I would like us to be." Jaguar would need to find a cost-effective way to build the model. Developing an architecture from scratch is one possibility, though it's an expensive one for a company whose financial foundations are shaky at best. It could use its new MLA platform if it's flexible enough to underpin a small car, or it could ask BMW — which it's linked to via several on-going partnerships — to use the front-wheel-drive UKL architecture found under the aforementioned 1. One point the original report doesn't address is that, while a hatchback in the vein of the A3 would do well in Europe, it would fall flat on its face in the United States. That's why Audi, BMW, and Mercedes-Benz all added a trunk to their Euro-flavored hatches for American buyers who prefer three-box sedans. Jaguar would either need to do the same, meaning it would replace two sedans with a hatchback turned into a sedan, or it would end up giving up thousands of sales in one of the world's largest car markets, which would be counterintuitive. Another possibility floated by Autocar is replacing the XE (pictured) and the XF with a compact sedan described as eco-focused.