Jaguar sales in top gear; Land Rover softens
26 July, 2008 - NEW DELHI/LONDON: When Tata Motors bought Jaguar and Land Rover, conventional wisdom was that Jag was a drag and Land Rover the deal steal. A month down the road, things have changed dramatically. Jaguar sales, based on the XF, have been in top gear, but Land Rover is now hitting skid row. The problem: while the Jag is a small-volume brand, Land Rover is the brand that brings in the numbers and a reversal in the latter’s fortune could spell trouble. Sources say there could be pressure on JLR pension schemes if the current market volatility continues. According to a study by Pension Protection Fund-a British body that helps protect employees of bankrupt companies-final-salary pension schemes saw their surplus shrink from £53 billion to just £8 billion due to stock market skids between end-May and end-June. The deficit of loss-making schemes jumped from £46 billion to £63 billion during the period. However, the official JLR spokesperson explained that “as of now JLR pension plans are okay. We can’t comment on specific monthly performance of pension schemes, but at the time of the deal the pension plans were stabilising and Ford put in $600 million”. Land Rover has had a bumpy ride ever since the American market for gas-guzzling SUVs started softening. Its June sales in the US tumbled more than 40% to 2,200 units, down from 4,160 units last June. Cumulative American numbers in the first six months of 2008 came down to 16,492 from 22,842 in 2007. Back home too it hasn’t had a great run, with fortunes fluctuating since March. In June, its west Europe sales dropped 36% as the craze for fuel-efficiency gripped both sides of the Atlantic.
Saturday, July 26, 2008
Auto News: Jaguar sales in top gear; Land Rover softens
Jaguar sales in top gear; Land Rover softens
26 July, 2008 - NEW DELHI/LONDON: When Tata Motors bought Jaguar and Land Rover, conventional wisdom was that Jag was a drag and Land Rover the deal steal. A month down the road, things have changed dramatically. Jaguar sales, based on the XF, have been in top gear, but Land Rover is now hitting skid row. The problem: while the Jag is a small-volume brand, Land Rover is the brand that brings in the numbers and a reversal in the latter’s fortune could spell trouble. Sources say there could be pressure on JLR pension schemes if the current market volatility continues. According to a study by Pension Protection Fund-a British body that helps protect employees of bankrupt companies-final-salary pension schemes saw their surplus shrink from £53 billion to just £8 billion due to stock market skids between end-May and end-June. The deficit of loss-making schemes jumped from £46 billion to £63 billion during the period. However, the official JLR spokesperson explained that “as of now JLR pension plans are okay. We can’t comment on specific monthly performance of pension schemes, but at the time of the deal the pension plans were stabilising and Ford put in $600 million”. Land Rover has had a bumpy ride ever since the American market for gas-guzzling SUVs started softening. Its June sales in the US tumbled more than 40% to 2,200 units, down from 4,160 units last June. Cumulative American numbers in the first six months of 2008 came down to 16,492 from 22,842 in 2007. Back home too it hasn’t had a great run, with fortunes fluctuating since March. In June, its west Europe sales dropped 36% as the craze for fuel-efficiency gripped both sides of the Atlantic.
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