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 The brand's quality and reliability dings have also lurked in the back of buyers' minds for decades, though that's an outdated notion.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

Cadillac, Daimler execs take swipes at Tesla

Despite the financial ties between Daimler and Tesla Motors, at least one Mercedes exec thinks the electric automaker doesn't have a bright future. And over at Cadillac, the message is that Tesla doesn't pose a threat but offers the luxury arm of General Motors more of classroom experience. The Mercedes story runs like this. Mercedes-Benz USA president and CEO, Steve Cannon, said at the New York Auto Show last week that Tesla has "no network" and only offers "little shops that don't have service capacity." He also said: "Folks are buying a Tesla now because they're kind of cool, but if you're a Tesla buyer, you have to have multiple cars. With Mercedes, you have a whole network. You've got no worries. ... Tesla is great, but you've got plenty of well-established brands that mean luxury, like Porsche or Mercedes-Benz, and how long do you think we're going to wait and let Tesla be out there alone [selling premium electric cars]?" "Treehuggers do not buy new luxury cars" – Uwe Ellinghaus For Cadillac's global chief marketing officer, Uwe Ellinghaus, Tesla's EV success represents little other than "a great opportunity and a learning exercise for all of us, and will help us traditional manufacturers to think twice about electric mobility." He added that, "I am not afraid of Tesla. ... There is no willingness to really sacrifice on the traditional qualities of a luxury car. These are not cars for treehuggers, as treehuggers do not buy new luxury cars." Ellinghaus made the comments during a panel discussion at the 2014 Automotive Forum. Perhaps the lesson of Tesla's offer of free Supercharging to Model S owners is what led to Cadillac to recently announce a deal with Chargepoint that gives ELR drivers access to that company's 16,500 charging stations. Read more details on that below. Cadillac and ChargePoint Bring EV Customer Luxury Driving Experience World's largest, most open electric vehicle charging network available to ELR drivers 2014-04-16 NEW YORK – Cadillac today announced a partnership with ChargePoint, the largest and most open electric vehicle-charging network in the world. The collaboration brings Cadillac ELR drivers immediate access to more than 16,500 charging locations on the ChargePoint network. The ELR electrified luxury coupe went on sale at the end of 2013. It embodies Cadillac's Art & Science design philosophy, combining provocative design with progressive technology.

Hybrids to slowly replace diesels at Mercedes

German automakers have had some success bringing diesel-powered vehicles in America in recent years, but that may not last much longer. A product planner from Mercedes-Benz we spoke to in Austria apparently believes hybrid setups may be more favorable in the long run, and electrified hybrids will eventually replace oil burners. That's why most every concept car we've seen in the last few years features some sort of hybrid or plug-in hybrid setup while there have been very few diesels. "Yes, diesel is technically complex, and very expensive. The additives to reduce particulate matter are very costly. You'll see more hybrids to meet the changing regulations," according to our source. We've seen this exact scenario play out with Mazda, which has struggled to bring its 2.2-liter diesel engine to America, citing the costly process to reduce emissions in order to meet California-level standards while still maintaining suitable performance for the US market. It's certainly interesting that this news comes hot on the heels of revelations that VW, the automaker that offers the most diesel-powered models in the US, was found in violation of emissions rules on its popular 2.0-liter TDI engine. New Mercedes GLE Will Have An Active Chassis Mercedes has launched an all-out product offensive in the last two years, but the product planning think tanks in Stuttgart have a few surprises in store, too. While Benz has just launched its new GLE SUV family, GLE product planners are already hard at work on the next-generation – yes, a good 5-6 years away – and tell us it will evolve to boast new chassis technology, "something that doesn't exist today." The next-GLE is codenamed 167 – the previous ML (now replaced by the GLE) was internally referred to as 166 – and the GLE planner we recently talked to calls the platform an "active chassis." He further alluded that the next version could be electrified. Currently, the only aspect of the GLE's chassis that is 'active' today are the hydraulic pumps on the roll bars, he said. Many of Mercedes' models can already be had with an adaptive air suspension, multiple selectable driving modes, and other features that were rare or nonexistent just a couple generations ago. One More Compact Crossover On The Way The planner said we can also at least one more all-new, forthcoming compact crossover to be built on the GLA platform. In addition to the GLA, that architecture is currently shared by the A-Class, B-Class, and CLA-Class models.