Jaguar's American Dealership Network Will Shrink In Parallel With Its Lineup

Apr. 02, 2023 8:12 AM ET by Karl Furlong Industry News / 12 Comments

The British brand will soon enter the ultra-luxury segment, so it won't need as many showrooms.

Not only will Jaguar's model lineup be streamlined dramatically from 2025 as it goes fully electric, but the British brand's dealership footprint will also shrink between now and then.

According to Automotive News, Jaguar Land Rover is in the process of offering certain dealers additional allocations of Land Rover models like the Defender and Range Rover Sport if these dealers agree to give up their Jaguar franchises.

One dealer who asked to remain anonymous suggested that as many as 40 dealers had already accepted the offer, which is quite a chunk of the 395 Jaguar Land Rover dealers known to be operational in the USA when the year started. This could be the start, though, as Jaguar's desire to compete with smaller high-end brands like Aston Martin and Bentley could see the number of dealers continue to decline rapidly.

Jaguar Land Rover Buffalo/Facebook

Jaguar Land Rover Manhattan/Facebook

It's been over two years since Jaguar declared that it would morph into a fully electric automaker in 2025, a move that will effectively see the current lineup - including the gorgeous F-Type Coupe and smooth-riding but dated XF sedan - be discontinued. A brand like Aston Martin is not focused on high-volume models and has under 50 dealerships in the USA, and that's the kind of footprint Jaguar will be looking to establish over the next two or so years.

Some dealers who have agreed to relinquish their Jaguar franchises will, however, still be able to provide parts and servicing for customers who own existing Jaguar models, even those that will be phased out imminently.

Jaguar Land Rover Brooklyn/Facebook

The new generation of electric Jaguars will be underpinned by the new Panthera platform, with three new high-end vehicles expected. They will start at over $120,000, underlining just how serious Jaguar is about moving to lower-volume, ultra-luxury cars exclusively.

Even an electric version of the XJ that was previously under development was not deemed worthy of the new range of upcoming EVs, and that sedan was canceled before it even reached showrooms. Jaguar previously stated that these high-end 2025 EVs will be previewed at some point this year, so it won't be long before we get more information about them.

Many current Jaguar Land Rover dealers have one location split between a Jaguar showroom on one side and a Land Rover showroom on the other. Still, with Jag decreasing its dealer footprint, these locations will look very different.

Jaguar

One Land Rover dealer in Kentucky said that the newly vacant Jaguar half of the dealership could be used to showcase certified pre-owned vehicles, or it can be used to separate high-end Land Rover models from the cheaper versions; there is a large gulf in price of over $150,000 between a base Discovery Sport and a top-spec Range Rover SV, for instance.

Jaguar's motivation to reinvent itself does not come as a shock. One New York Jaguar Land Rover dealer said that even at its peak, Jaguar sales only accounted for 15% to 20% of the dealership's total sales. Last year, Jag sales in the US dipped by almost 30% to 9,128 units.

Does the Jaguar brand have the gravitas to lure buyers away from Bentley, Aston Martin, or Rolls-Royce? Well, the company has committed to this new direction, so we'll soon be able to answer that question.