Jaguar has gotten into the luxury crossover business, one of the hottest segments in the car market. Its new F-Pace is so successful that the average time from when a dealer gets one until it is sold is only 19 days, the fewest of any model from any car company which sells vehicles in America.
Jaguar is in the midst of trying to recreate Porsche’s business model. For decades, Porsche made and sold the iconic 911. It finally broke its mold as a sports car company and launched the Cayenne SUV in 2002. The Cayenne quickly became Porsche’s best selling vehicle. In 2009, Porsche released a sedan, the Panamera. Two years ago, it launched the Macan crossover which competes directly with the Jaguar F-Pace.
The F-Pace is priced about the same as German crossovers. With a base of $42,065, it competes on price with the base Macan, the BMW X-3, and the Mercedes GLC.
Jaguar’s primary challenge has been diversifying beyond its coupes and sedans. These are the XE, XF, XJ, and F-Type. SUV and crossover sales have exploded in the U.S., mostly as the expense sedans and coupes, Jaguar has been trapped in a low growth, or no growth business model.
The F-Pace is generally reviewed as one of the best vehicles in its class along with the Porsche Macan. Like all vehicles in its class, it has several levels of upgrades. This can take the price of the F-Pace to above $70,000
The primary proof of how well the F-Pace has done is its sales compared to other Jaguar models:
Jaguar Land Rover North America, LLC reported April 2017 U.S. sales: Jaguar sales were 3,230 units, a 197 percent increase from 1,087 units in April 2016; Land Rover sales increased slightly to 5,211 units; Jaguar Land Rover April U.S. sales for both brands hit 8,441 units, a 35 percent increase from 6,275 units in April 2016; making it the best ever Jaguar Land Rover April sales month (previous best was 8,216 units in 2002). Year to date, Jaguar Land Rover is up 24 percent in the United States.
For the month of April, Jaguar sales were 3,230 units, a 197 percent increase from 1,087 units in April 2016; making it the best April Jaguar sales month since 2004.
The Jaguar F-PACE hit 1,377 units sold, making it the brand’s volume leader for the month
Jaguar made a decision to get into the crossover market, and F-Pace sales show how brilliant it was.
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