7:29 am, June 19, 2024
Jaguar dealers across the pond are gearing up for a legal battle with the manufacturer over its plans to switch to a lower volume, electric future.
Reports from Canada allege JLR is looking to slash the number of Jaguar outlets it operates across the country as it switches from a volume player to an EV specialist.
It follows news Car Dealer exclusively reported last year that Jaguar was set to cut its number of UK showrooms from around 80 to a quarter of that as it didn’t need as many to cope with its new electric brand.
Canadian dealers are said to be furious sales numbers will plummet from some 8,000 cars a year to around 700 when the new electric car is launched next year.
Steele Auto Group is one partner claiming $6.8m in damages from JLR Canada for ‘failing to disclose upcoming changes to Jaguar’s business strategy’.
The dealer group is said to have splashed out on a new Dual Arch showroom in Dieppe before it realised the shake up to the Jaguar brand would have a major impact on its business model.
Jaguar Land Rover has been busy ‘Reimagining’ its brand and have said the new Jaguar electric model will be a ‘copy of nothing’ when it arrives in 2025.
However, JLR has made no secret about the fact Jaguar will be lower volume – and that doesn’t require the large dealer networks it has in place around the world.
Canadian dealers are said to be in discussions with Jaguar Land Rover but are ‘prepared to file legal action’ if they cannot find a suitable resolution ‘in the next few weeks’.
Automotive News asked JLR about its Canadian plans and how many dealers it believes it needs and a spokesperson would not comment. They said JLR ‘remained committed to a franchised dealer network’.
Changes in the UK have already got underway with a number of Jaguar showrooms closing.
Last year, the firm’s UK boss Patrick McGillycuddy confirmed the number of dealers would be cut as part of its ‘transformation’ plans. At the time it said it would also be moving to an agency sales model, but the car maker rowed back on that earlier this year.
JLR still plans to sell cars online, but will be sticking with a traditional franchised dealer model. The move was welcomed by its UK partners including Sytner and Vertu Motors.
