7:01 am, March 12, 2023
British car manufacturer Jaguar is set to drastically cut its dealer network from more than 80 today to fewer than 20 in just two years.
The car manufacturer has told its dealer partners that it doesn’t need a large number of the sites any more as it transitions to an all-electric future.
At an investor meeting for its car dealers recently, the car maker told its partners it would be drastically reducing its numbers across the country.
Dealers at the event signed non-disclosure agreements about the plans – but they have been leaked to Car Dealer.
Most Jaguar Land Rover dealerships are currently dual franchise with half the showrooms dedicated to Jaguar and half to Land Rover.
JLR dealers were asked to invest huge sums in the Arch concept dealerships which housed both brands. Marshall Motor Group spent £10m building one in Lincoln.
The large majority of these will now become sole Land Rover sites as the brand focuses on what it calls its ‘houses of brand’ – Range Rover, Defender, Discovery and, to a lesser extent, Jaguar.
Several Car Dealer sources have confirmed the manufacturer’s plans.
‘We were told that Jaguar dealer numbers will be between 15 and 18 in just two years,’ said one source at the meeting with JLR.
‘That’s a huge cut from where they are today. They have more than 80 across the country at the moment.
‘As Jaguar moves to agency sales it thinks it needs less dealers, but we never thought it would be anything like as drastic as this.
‘There were a lot of open mouths when we were told.’
Car Dealer has corroborated the revelations with several other JLR franchise holders.
Jaguar is set to move to agency sales – directly selling cars to consumers itself online and getting dealers to hand them over – when it launches its electric cars in 2025.
A second Jaguar Land Rover franchisee told Car Dealer: ‘Jaguar was always seen as the Land Rover tax – you couldn’t have one without the other.
‘History dictates that no car manufacturer has ever been successful running their own car dealerships, and I can’t see it being any different for Jaguar. Best of luck to them.’
Inside a JLR Dual Arch dealership
Last year, Car Dealer reported that Jaguar had 83 dealerships across the UK in our research that revealed how many sites each brand holds.
In August 2022, Car Dealer also reported discontent among JLR dealers at Jaguar’s plans to open its own dealerships. The manufacturer admitted to Car Dealer that the brand was planning to run a handful of its own stores as it repositioned the brand.
The new Jaguar – likely to cost upwards of £100k – is due to be unveiled in 2024 and launched in 2025. The dealership representation changes are set to coincide with that timetable.
In a statement, Jaguar Land Rover told Car Dealer: ‘Jaguar Land Rover is reimagining the future of modern luxury by design through its two iconic British brands.
‘As part of our “Reimagine” strategy one of our key objectives is to establish new benchmark standards in customer service for the luxury sector.
‘We will adapt our customer journey for our future clients, providing multiple touchpoints, delivering leading luxury experiences and creating a customer-centric culture.
‘Our objective is to build a stronger and more sustainably profitable Jaguar and Land Rover network for the future.
‘It is too early to disclose any further details as we have only begun discussing the matter with our retail partners.
‘The first of the new, all-electric Jaguars will be revealed before the end of 2024, and will be with customers in 2025. We will tell you more about Jaguar’s future before the end of this year.’
Main image: Library shot of Jaguar Land Rover site in Sunbury, used for illustrative purposes only
