Jaguar Considers All-Electric Future Following I-Pace Success

FEB 15 2019 BY VANJA KLJAIC 33

The British carmaker might also migrate all mainstream models to a single flexible platform in preparation for electrification of their entire model range

While Jaguar is in a hole these days – mostly of its own making – the company is looking at an electrified future to turn the tides. The company posted a series of quarterly losses with the latest revealed on February 7th with £273m ($351m) in the latest three-month period. To add insult to injury, there was an additional whopping asset write-down, of £3.1bn.

In turn, the immediate aftermath produced a rippling effect across the board. The shares in its parent company, Tata Motors, which is the carmaking arm of the Indian conglomerate, collapsed by 18% and have now fallen by 60% in the past year. To make matters even more compelling, Jaguar Land Rover accounts for about 80% of the total sales and all of its profits for the Indian company, making us believe a big change is coming behind the scenes.

According to sources, the parent company is committed to Jaguar Land Rover and it is determined to turn it’s faith around. And the imminent replacement of both the Jaguar XE and XF models looming behind the horizon, paired with the success rates of the all-electric I-PACE, is making the British carmaker turn to EVs for their future success.

It was revealed in an article published by AutoCar, that the British carmaker is eyeing a clean slate design for both. According to the information revealed, Jaguar is eyeing to migrate all of their mainstream models into a single flexible platform in the preparation for their entire range becoming electric in the next few years. In turn, this follows a similar path that BMW AG took with their new multi-modal platform, giving the Bavarian carmaker the option of using it for both their ICE (Internal Combustion Engine) models, but also, to hybridize and electrify some of its range, while keeping complete flexibility.

With the European Commission announcing recently that the CO2 emissions of new cars registered in the EU will have to be 15% lower in 2025 and 37.5% lower in 2030, Jaguar will be hard pressed to rethink their strategy. And this comes in the face of a potential problem where not even the 2023 plug-in hybrid XE/XF and the XJ could not be enough to help meet the 2025 targets. While a logical answer to this problem would be to go electric, the British carmaker is well aware of the potential issues stemming from the dependency of EV uptake on government incentives, charging infrastructure and legislation changes.

However, the success of the Jaguar I-Pace might move the carmaker in the direction of hybridization and battery-powered vehicles in the near future. If Jaguar decides to go completely electric, the appealing styling of their newer models, combined with the premium brand awareness and likeability, might actually turn the tides around for one of the world’s most coveted car companies in the long run. With the world moving to a cleaner future, some low-yield carmakers like Jaguar might benefit more from skipping the hybridization phase altogether. But, having said that, moving to battery-powered vehicles completely is a big decision to make. Especially for a company that’s been struggling to keep things going at a reasonable rate. However, an electrified Jaguar F-Type with a 0-60mph (0-100km/h) in 3.0 seconds, gorgeous looks and impressive handling, sure sounds like a good idea.

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33 Comments on "Jaguar Considers All-Electric Future Following I-Pace Success"

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Go electric or go bankrupt!

Could be both for JLR – go electric, still go bankrupt – but at least they would have gone down swinging.

Considers?????? As if they have an option.

And why is the E-Pace not an EV?

Seems like an obvious decision to me. Make Jaguar 100% BEV and Land Rover designed to accommodate all drive options, BEV, Plug-in Hybrid and pure ICE.

A couple won a Jaguar E-Pace today on Wheel of Fortune. At least I thought they said E-Pace.

You would think that the E-Pace was the electric version, but it’s the I-Pace that is electric and the E-Pace is an ICE.

Wow thanks I didn’t realize the UK’s word for electricity starts with an I ?

JLR already does ship Hybrid Vehicles. There is a Hybrid Range Rover already on sale so they don’t need to skip that phase but…
Jaguar going all Electric is the easy part of the business.
Land Rover would be more difficult but achievable.
There is a Defender lookalike out there. Go buy that and make it in volume and it will sell very well indeed.

I’ve test driven the Model S and the I-Pace and the I-Pace was a clear winner to me. both are too expensive though.

Having both a motor and an engine in a car is stupid, and only happens because Government policies currently incentivise it, which I do not expect to continue. Playing legislative Russian roulette did not work for Jaguar when it bet the farm on diesel on the basis of tax policies, and the same will happen with hybrid, the only question being when. It’s got to be all in full BEV. That may not work, but no other strategy even has a chance, Jag will die. So go hard, go now!

If you think in terms of the environment, the average emissions are incredible lower for plugin hybrids.
Mechanical engineers (I’m not one) are very smart guys, they can build stuff that for other mortals seem extremely complex and unreliable but in the end it’s not that expensive and it works just fine.

Yes, especially since most people drive less than 30 miles a day. Hybrids are/were totally worth doing, but they will go down as batteries go up.

That argument is specially true for BEV, since 200+ miles BEV are coming in drove this year. They only need the charging infrastructure to be a viable alternative.

It is getting there…

It would be best for Jag to “top hat” the ipace chassis with a traditional wagon body style and a sedan.

The problem for Jaguar is not having EVs or not, it’s much deeper than that.
If the i-pace is seeing some success, it’s also because there’s limited competition.
With time everyone will be making EVs and the problems of Jaguar will remain as they’re now if they don’t change many things.

Jaguar is dying for a long time, Land Rover I think it still have some recognition but I wonder how strong.
I don’t see a bright future for them, but I think they can turn things around. Volvo was in a shambles and they’re doing a great job.

The success of the I-Pace shows they employ some of the best engineers in the business.

Exactly – it is not insignificant that they beat Mercedes and Audi to market with the iPace. They could switch Jag to EV only in 3-4 years if they really went for it. I wonder if they will wait for Brexit and see if they can get some government help on a battery facility before making some big announcements this year.

The I-Pace is produced at Magna-Steyr in Austria. This is the Jaguar car that will have the least production problems after Brexit.

How much of a success has the I-Pace been? Sales in the US seem pretty low. Are they selling well in Europe?

Exactly this. I like the I Pace, but it doesn’t seem to be a success (or much more than a niche car) in the US.

Jag is a niche manufacturer. They sold ~7,000 iPaces in 3 months in 2018 and that was 13% of the total Jag sales volume. They really don’t need to sell too many to survive with their current cost base.

So was tesla a niche car before the model 3.

Is that last sentence really true? I have no idea of JLR’s cost structure, but unlike VW Group which makes Bugatti’s as a loss leader simply as a halo brand for the Group, I had the impression Tata definitely expected JLR to be a moneymaker once they got sufficient investment.

Well they’re on the right track, I am seriously enjoying my new I-Pace. 👍

They said this long before the I Pace was even introduced.

I think going all-electric would be a very smart move for Jaguar. Switching to a new powertrain would help the company shed some of its negative reliability reputation with ICE models in the USA. The switch would also help Jag stand out against the other luxury brands. I can’t really think of a reason to consider a Jag over a Lexus, Infiniti, Audi, BMW, or other luxury brand at the moment. Offering something different under the hood would deliver that reason. The I-Pace is very nice — use it as a launchpad for future products. Have Jaguar focus on electric while Land Rover focuses on ICE.

The I-Pace is considered a success?? Don’t get me wrong, it seems like a good car, but there’s no way they’ve made any money on it at this point.

Ditto, esp. since success is a relative thing.
Most of the i-Pace’s rivals aren’t out yet, and the actual test will be the relative sales compared to other luxury BEV SUVs from Mercedes, BMW, Volvo, Audi and various niche brands.

No car that is out for a couple of months has made the OEM any money at that point. I’d even say that after the first 3-4 years, most cars still made no money. After that point, the investment costs are made up and the car starts making a profit.

But based on demand, gross margin, etc. you can make some estimations early on, on how good you’re doing. But sure, if more competition comes in and Jaguar either has to reduce the I-Paces price, or loose sales, then suddenly the future might not seem so rosy anymore.

On the other hand, they aren’t too successful selling ICEs right now, so their really is just one way to go forward…

Some woodhead in that company should have advised on diesel cars and they suffered heavily as diesel sales collapsed.
Atleast go plugin if not electric.

Yea, but without diesels they wouldn’t have been able to compete in Europe, which is still by far their strongest market.

It’s like saying Ford should not focus too much on pickups. Because if that’s the only thing making you money, then you really need to compete in that market.

If JLR wouldn’t have sold diesel cars and SUVs, they would have been bankrupt even before the Model S came out.

They should replace those 2 sedans XE and XF with a crossover which has same size as XE, but with 5 doors and slightly taller: 1.5 m / 60 “.
Buick is calling Regal TourX as a Crossover even though its height is just 58.4 ” on the grounds that it has AWD as standard.
So Jaguar can offer few trims with AWD and call such a tall vehicle as crossover and offer a hybrid and plugin version and let the customer choose what they want.

Currently there is few crossovers with a plugin version and decent 31 mile / 50 km range.

Its too bad they did not pursue the turbine powered range extender, I guess the emissions issues were unsurmoutable. I think building a scalable EV for Jaguar and LR is essential in the longer run. LR will probably need a range extender. iPace is a nice vehicle, but its poor efficiency makes it clear they need more R&D

Picked up my I-Pace last Saturday and the range is problematic.
This morning it had a full charge and toldme I have 344 kms. I travelled 49 kms to work in eco mode, and now it tells me I have 240 km. Gorgeous car, but range is an epic fail so far.