JLR has invested billions in reinventing Jaguar and received mixed reactions to the design of its new Type 01, unveiled this week.
The company announced last month that it would cut 4,000 jobs as it deals with mounting financial and operational pressures. Production was also disrupted for more than a month following a cyberattack last year.
David Bailey, professor of business economics at the University of Birmingham, described the situation as a “perfect storm” for JLR and said the new model was a major gamble.
“I think it's make or break for Jaguar as a brand,” he said, adding that the company had struggled to compete in the premium market and was now attempting to reposition Jaguar as a luxury electric brand.
Bailey said the luxury electric vehicle market was still in its early stages, meaning Jaguar was attempting to establish itself in a market that had yet to fully develop.
The Type 01 will start at £130,000 in the UK and $130,500 in the US. Its electric motors produce around 1,000 horsepower, allowing it to accelerate from 0-62mph in 3.2 seconds.
JLR says the car can travel up to 320 miles at sustained highway speeds. Designed and built in the West Midlands, the vehicle was taken to Manhattan for its launch.
Production will take place at JLR’s Lode Lane plant in Solihull, while its battery packs will be produced at the company’s Wolverhampton facility.
JLR employs about 43,000 people worldwide, and the 4,000 planned job cuts have raised concerns about the future of employment and investment in the UK automotive industry.
Former Rover Group managing director Kevin Morley previously warned that further job cuts could follow if the new Jaguar fails to achieve the sales figures expected by the company.
Jaguar’s decision to become an all-electric brand is widely viewed as a high-risk strategy. The company does not publish separate financial results for Jaguar, but the brand is widely considered to be the weakest performer within the JLR group.
West Midlands Mayor Richard Parker has also argued that the transition to electric vehicles may be happening too quickly for consumers. He has called for the government to reduce its electric vehicle targets to protect the UK automotive sector.
The Type 01’s design has received a mixed response, although members of the Jaguar Enthusiasts Club in the West Midlands have welcomed the new model.
Tim Brookes, from Kingswinford, said the car retained Jaguar’s traditional low, long and wide appearance while introducing a fresh design.
Ian Martin described the vehicle as a bold move that could help Jaguar compete in a new market.
Peter Bennett, from Walsall, praised the technology but warned that Chinese manufacturers were offering vehicles with similar features at much lower prices.
Trainee mechanics at City of Wolverhampton College also responded positively to the car, with student Muhammad Ali Adnan describing it as a major departure from previous Jaguar models and saying it had the potential to succeed.
