JLR electric commitment excites NZ operation

All Land and Range Rovers, Jaguars set to adopt battery-fed drivetrains.

 JAGUAR and Land Rover intent to undertake a full-strength switch to electric powertrains has left the New Zealand distributor eager to learn more.

Steve Kenchington, Jaguar Land Rover New Zealand’s general manager, agrees the customer base – particularly on the Land Rover side – will need time to digest the implication of today’s announcement from the United Kingdom, but personally it’s exciting news.

“This has come as quite a big surprise to us – a pleasant surprise – in what it might it look like and what they are planning. There is much we don’t know.

“What is most exciting for us is that JLR has now defined the future direction for the brands and that this is happening on the back of a significant turnaround for them.”

The strategy unrolled today is for Land Rover to launch six pure electric models within the next five years while its sister brand is to be reimagined as an all-electric luxury marque by 2025.

How that impacts on the makes’ individual model has yet to be spelled out.

Jaguar Land Rover NZ boss Steve Kenchington is excited by today’s news.

Jaguar is already of course engaging in the EV-sphere with its iPace sports utility, a New Zealand Car of the Year winner that accounts for 10 percent of local Jaguar volume.

Yet it still produces its other cars – the E Pace and F Pace SUVs, the F-Type sports cars and XE and XF sedans – in conventional fossil fuelled form.

Today Jaguar also confirmed the replacement XJ large sedan, which had been destined to come out later this year as an electric product, has been abandoned.

The transition period for Land Rover seems to be longer, but the end game will be even more dramatic. The green badge division has some plug-in hybrids and is about to release an update of the Range Rover Sport locally with a new six-cylinder petrol that could, Kenchington agrees, become the last orthodox conventional fossil-fuelled drivetrain it delivers to market.

Next year it will bring out a new Range Rover and beyond that the next Range Rover Sport, both expected to have a mix of mild and plug-in hybrid drivetrains. 

The prospect of diesel models continuing for much longer seems unlikely, the local man suspects – “I think the latest Ingenium engines we are now bringing out will be the last” - even though this has been a preferred choice in the current Defender – which is about to go to a plug-in hybrid petrol choice – and the Discovery, which could yet be the first Land Rover to deliver the wholly electric promise as a new one is on the drawing board for release within three years.

Alternately, the Evoque and Defender Sport might become early adopters of a battery-pure approach. It’s all speculation at the moment. 

He thinks Land Rover’s petrol engines have a future, but in hybrid formats. “They have certainly put a lot of work into making them more eco-friendly and I suspect we will continue to see the benefit of that in the short to medium term.”

He reminds that the off-road specialist is continuing research into hydrogen fuel cell as well. Last week JLR confirmed that fuel cell powertrain development forms a core part of its ‘Reimagine’ strategy and said it will begin road testing prototypes within the next 12 months. 

Last year, the company detailed its Project Zeus initiative: a serious hydrogen power research project with the aim of developing fuel cell-powered versions of its larger vehicles. It has now reinforced that ambition to prepare itself for "the expected adoption of clean fuel-cell power in line with a maturing of the hydrogen economy". 

For its part, Jaguar Land Rover nonetheless says that all of its brands’ nameplates will be available with an all-electric variant by 2030.

Land Rover should be selling around 60 percent of its cars in pure-electric form by the end of the decade. However, it has stated that its first pure-electric model will be in production in 2024.

Land Rover’s latest model here, Defender, is already being built in a PHEV format.

A company release stated, “In the next five years, Land Rover will welcome six pure-electric variants as it continues to be the world leader of luxury SUVs through its three families of Range Rover, Discovery and Defender. The first all-electric variant will arrive in 2024.”

Kenchington says it is clear that customers have a lot to take onboard and will be asked to alter their preferences: Ironically, he muses, the five-litre supercharged V8 that is the antitheses of automotive Green intent is “selling like hot cakes for us at the moment.”

If a pure electric large Land or Range Rover were magicked into sales-ready form right now, it might still be a hard sell to many brand fans. Many probably just aren’t comfortable with electric.

He says it will therefore be crucial for the brand to mount an effective campaign to convert supporters to the new direction. He thinks it will be achievable, particularly once Land Rover can show that all the historic benefits that associate with its off-roaders will be maintained, if not enhanced, by having a battery-drawn drivetrain. 

“At the moment there’s never been so much demand for big ICE engines; we’ve probably never previously sold as many V8 supercharged as we at the moment.

The successful of EV transition will “come down to how good it is, how efficient it is, what the range is ….

“But if it is going to continue to be a Land Rover in its DNA, then I think people will embrace it. There is no reason not to. We have all driven electric and we know how good it is. If it can still submerge to 900mm in a river crossing and do all the other things our vehicles are really good at then there’s no reason why anyone wouldn’t want to go there.” 

“It is all very exciting.”

The plans for Jaguar are more complex, simply because while it was heading toward electric anyway, much has changed with the XJ limousine being scrapped.

In respect to this, the statement from Jaguar headquarters said it is still possible the XJ nameplate might be retained.

The makes’ supercharged 5.0-litre V8 petrol, used in the Jaguar F-Pace SVR as well as by Range Rover, has been a big seller lately.

 “By the middle of the decade, Jaguar will have undergone a renaissance to emerge as a pure-electric luxury brand with a dramatically beautiful new portfolio of emotionally engaging designs and pioneering next-generation technologies. Jaguar will exist to make life extraordinary by creating dramatically beautiful automotive experiences that leave its customers feeling unique and rewarded.”

Overseas commentators say the XE, XF, E-Pace, F-Pace and F-Type would now appear to have a finite lifespan, with all-electric replacements due by around 2025.

Kenchington says those products present interesting potentials. As much as iPace has found a place in the local market, Jaguar really needs other electric products in more convenient price zones than the $150,000-plus SV has nestled into.

Jaguar is likely to unroll its model specific strategies in coming months, he believes. “But clearly F-Type and F-Pace will go all-electric and you would expect E-Pace to do so as well.”

The $80,000 to $100,000 zone where XE and XF mainly position is an area that he is keen to exploit.

“At the (iPace) price point there is a limited audience but I think there is an appetite for electric and we just have to get to the point where we can produce these vehicles a bit cheaper.” 

Jaguar’s sedans have struggled in fossil fuel formats and yet as much market shift to SUVs suggests orthodox four-door booted cars are a dying breed, he looks to how well Tesla has done with the Model 3 and Model S. 

“From my perspective I’m keen to understand what they will do with the sedan market. It looks like XJ will not go ahead, but what they are going to do with XE and XF is interesting – do they keep both, do they keep one, do they have an XF and a long-wheelbase XF to create an XJ alternate? I just don’t know.

 How important could electric Jaguar sedans be in NZ, given we are so SUV-centric? Conceivably, they shouldn’t be, and yet … 

The iPACE accounts for 10 percent of Jaguar volume in NZ.

“If you look at the performance of Tesla, you’d say ‘quite important.’ Model 3 and Model S have been very successful. It feels to me that electric (in a sedan format) seems to attract.”

“In saying that, it could be that this is because there has not been much to offer in the way of SUVs. Tesla were first into the market, there was nothing else to buy … and you buy what you can. It’s very clear that the SUV segments continue to grow and the sedan segments continue to decline.”

His gut feeling is that Jaguar is probably considering E-Pace, F-Pace and another ‘Pace’ model as yet undisclosed being core to the electric drive. But maybe the sedans could survive. “I don’t know.”

The decisions lading to today’s announcement come after Jaguar Land Rover appointed ex-Renault executive Thierry Bollore to replace former CEO Dr Ralf Speth. The Frenchman started his new post last September but has kept a determinedly low profile as he undertook a full review of JLR’s business, current model line-up and future launch plans.

Today’s new has affirmed that JLR is able to retain all of its current production facilities, thereby quashing rumours that one of its UK factories might have been under threat of closure. 

South Island enthusiast snares single special F-Type

The Heritage 60 Edition seems likely to carry a hefty premium over the standard supercharged V8 donor.

SIXTY are being created to celebrate the E-Type's 60th birthday, just one is earmarked for New Zealand … and it’s already been spoken for.

 That’s the synopsis for the 2021 Jaguar F-Type Heritage 60 Edition, a special edition officially unveiled yesterday.

Coupes and convertibles are being produced, but it appears the open-air editions aren’t destined for this part of the world.

The single coupe locked in for Kiwi consumption has been signed off to a South Island fan, with mid-2021 delivery looking likely.

The deal appears to have been achieved regardless that final pricing has yet to be resolved, Jaguar New Zealand has indicated.

It won’t be cheap. Jaguar Australia reckons the five coupes it has been allocated will each sell for around $NZ350,000, before on-road costs.

That’s a significant premium over the most raucous version of the donor F-Type R, the P575 R, which is a $214,900 ask here and has the same 5.0-litre supercharged V8 sending 423kW of power and 700Nm of torque to all wheels through an eight-speed automatic transmission.

Performance figures carry over; so a 3.7-second sprint from zero to 100kmh, towards an electronically-limited top speed of 300kmh.

All examples of the special are finished in Sherwood Green – an original E-Type colour, last offered on a new Jaguar in the 1960s – with duo-tone Caraway and Ebony Windsor leather, a combination exclusive to the Heritage 60 Edition.

The cars feature 20-inch gloss black forged alloy wheels, black brake calipers and gloss black and chrome exterior trim accents.

Unique highlights include aluminium centre console trim inspired by the E-Type's rear-view mirror housing, E-Type 60th Anniversary logos embossed into the seat headrests and above the infotainment display, commemorative sill plates, Caraway-edged floor mats and an SV Bespoke 'One of Sixty' plaque.

The anniversary logo is shared shared with six matching pairs of restored, 3.8-litre 1960s E-Types, that are being delivered by Jaguar Classic, the brand’s refurbishment division that dedicates to yesteryear fare.

The resto projects pay tribute to two of the most famous E-Types built, which wore British registration plates '9600 HP' and '77 RW'. These will be known as the E-Type 60 Collection. It’s not known if any of these are earmarked for NZ buyers.

JLR finance offer set to spur rival actions?

Incentives to jolly up consumer interest in new cars could become a new norm.

Diminished interest in new vehicles seems a certainty this year, the industry believes.

DETERMINATION by Jaguar Land Rover’s distributor to offer deferred payment finance deals on new vehicles has raised interest within the industry.

Thought from onlookers is that it’s a behaviour that can be expected to increase as dealers and distributors work to recover from the drop-off in economic activity, not just the impact of lost trading during Level One lockdown but also to counter the likelihood of tougher times ahead.

 There’s some belief, too, that premium car brands in particular will set the pace with an increasing count of stimulus and relief programmes. In addition to special financing, enhanced warranties might also become a pitch.

The impact of the economic shutdown to contain the Covid-19 pandemic has been especially hard on the car industry.

At international level, assembly lines remain either closed or at least constrained by social distancing requirements and logistics spanning parts supply to vehicle delivery have been unsettled.

Customers keen to sign up for expensive metal facing longer wait times is an annoyance, but the real challenge is what Jaguar Land Rover New Zealand appears to be now preparing for – a prospect of diminished retail spending. 

 The high-end sector is obviously at highest risk if new car sales fall by between 40-50 percent for the remainder of the year, as predicted by some participants.

The $150,000-plus sector was showing clear signs of softening well before coronavirus became a factor; with some signs of decline revealing in early mid-2019.

incoming new Defender is exempted from the opportunity.

In recent weeks, too, there have been examples of prestige car owners divesting their expensive wheels to free up capital – sometimes at no small pain. Talk of high-end product that even in normal times might half in value within the first year  of ownership being divested well below even that is beginning to emerge.

Processes to buoy consumer faith during Covid-19 are also involving mainstream operators.

Hyundai New Zealand set a tone in extending warranties from early April, when lockdown conditions were more onerous, a move that affected more than 2000 vehicles.

It has also instigated Hyundai Assurance, which provides customers who lose their job within the first six months of entering into the finance agreement with the option of deferred interest and principal payments for up to six months. The NZ programme appears to ape one Hyundai first set in place in the United States amid the financial crisis of 2008 and now restored as coronavirus runs rampant there.  

Industry involvers speaking on condition of anonymity in wake of the JLR NZ announcement believe other competitors will likely also be looking at unrolling new and creative of maintaining customer confidence and bolstering sales volume. 

Announcement of the move arrives at an interesting time for the British manufacturer 

It is likely no more than an unhappy coincidence that the local initiative’s announcement came in a period of reports about JLR in the United Kingdom being in talks to borrow more than one billion pounds (more than $NZ2 billion) availed by an emergency coronavirus lending programme set up by the British government.

The marques are represented in New Zealand by Motorcorp Distributors, which founded in 2006. The makes represent in eight dealerships nationally.

JLR New Zealand explains its motivation for the 48 months option arranged through Heartland Bank at a rate of 2.95 percent. is to capitalise on low interest rates and provide business continuity for its dealers.

The deal includes 12 months of deferred payment and is available on Land Rovers and Jaguars already landed in New Zealand and in stock – and thus excludes the new Defender, set to arrive in July or August.

“Our role as an importer is to provide business continuity for our retailer network, whilst passing on any finance terms we can negotiate to our customers,” says general manager Steve Kenchington.

“The 12 months deferred payment offer … allows customers to drive away in their vehicle today whilst incurring no repayments until June 2021.

 “If the customer currently has an existing finance plan with us, they can terminate it, use any additional equity in the vehicle as the required 20 percent deposit and enjoy no repayments for 12 months,” says Kenchington.

“In such unknowing times we understand the need for lateral thought and creative solutions to drive business continuity and adapt to customer needs. 

Observers suggest the scheme is not entirely dissimilar to pre-coronavirus incentives that ask for programmed payments of ‘one third’ over set periods, starting with the initial down payment.

“On that basis, it is all interest-free,” said one. “They (JLR NZ) are covering at least the cost of the interest.”

In this scenario, it was suggested, a weight of risk falls as heavily on Heartland as it might on the distributor, which had reduced some of its risk through seeking a 20 percent deposit.

However, the great imponderable as always in depreciation, which has historically been particularly savage nationally as result of the free market attitude.

“Everything is worth less now than it was before Covid, maybe at least 10 percent, perhaps more.”

So, in respect to the JLR proposal, “it will still be upside down after 12 months because the car is unlikely to be worth 80 percent of its purchase price by then.

“It’s a very strong offer.”

F-PACE has been a solid seller for JLR NZ.

JLR defiance as market toughens

 In the face of black clouds … is one brand channelling the Black Knight?

updated f-type will be at forefront of JLR’s local effort this year.

PRODUCTION lines halted, factories closed, new models delayed, registrations at the lowest since … well, forever in some countries. 

Certainly, it seems fair to suggest the global coronavirus crisis has caused no small amount of pain to the car industry and probability of more discomfort ahead seems unavoidable.

The New Zealand forecast of 2020 delivering around 40-45 percent fewer new car sales compared with 2019’s national tally is actually optimistic compared with others being expressed elsewhere around the world.

In face of all this, what brand would dare demonstrate a degree of stiff upper lip against-whatever-odds’ defiance?

Step forward SVO, the performance division of Jaguar Land Rover.

Primarily taking this moment to celebrate how well it is done in the past 12 months – both globally and in New Zealand – it is also expressing a touch of confidence about the future being … well, if not outright bright, then perhaps ‘less bleak. 

Admittedly, even that level of quiet confidence will jar with how others see it.

And, assuredly, there’s still so much uncertainty about the market condition that what might for now seem to be a reflection of the spirit that kept Britain chipper after Dunkirk might yet equate to the outright nutsy ballsiness of the famous Black Knight of Monty Python and the Holy Grail movie fame who, you might recall, was so staunch in his refusal to give up that, even when reduced to a limbless torso, he wanted to fight on claiming those injuries were but a flesh wound.

Still, SVO having achieved record worldwide sales for the most recent fiscal year reminds that the Brit battler is making good gains in a sector where Mercedes-AMG and BMW’s M Division in particular have long held the high ground.

That success has been particularly felt on New Zealand soil, where the Kiwi pick of the very fast, very powerful, very loud and quite expensive versions of Jaguar Land Rover road cars and sports utilities has been a model that has impacted significantly everywhere, the F-Pace SVR.

Jaguar NZ general manager Steve Kenchington can be rightly proud that the $157,900 supercharged V8 flagship has nabbed 35 percent of local F-Pace volume, a rate that puts up well above the global average. 

Of course, as impressive as the local effort’s cited 175 percent year-on-year climb in volume sounds, it pays to bear in mind that the total count of SVO product sold here comes to a modest count. 

That just 157 units across the Land Rover and Jaguar portfolios in total came from the SVO operation reminds how exclusive this option is. Also, how expensive.

roaring f-pace svr has been a stalwart in this market.

What imprint the hottest F-Pace can present in the future is less certain. The car’s 404kW/680Nm 5.0-litre eight-cylinder is set to soon be discontinued, with Jaguar switching to an alternate engine from BMW. 

Perhaps what’s especially plucky, all the same, is brand sentiment that, once we put this coronavirus issue behind us, Kiwi enthusiasts will again be keen to rev up their buy-in these understandably expensive products.

According to a local spokesman: “The demand (for SVO) is such that when we enter a more normalised world post Covid-19, we will be keen to restart SV specific drive days for our customers.”

There’ll be a new hero to try on those occasions, in the form of the updated and extensively re-engineered F-Type.

Meantime, Kenchington reckons the strong sales in the New Zealand market reflect Kiwi’s love for SV products “and their more sophisticated buying habits when it comes to performance vehicles.”

“While the SV product range has assisted Jaguar Land Rover New Zealand’s total sales growth over the last 12 months, the introduction of new technologies in electrification have meant that we are also able to offer the likes of World Car of the Year Jaguar I-Pace.

“Being able to deliver such strong innovation in quite different parts of the market is a testament to the incredibly hard work and innovation that is taking place at our factories,.”

rang rover svr product has also resonated

The F-Pace aside, SVO has identified the Range Rover SVAutobiography as another particular winner that helped towards total sales of over 9500 cars.

But about that I-Pace. SVO ‘s overall boss, Michael van der Sande, has confirmed that his division is set to launch its first all-electric car within a few years.

However, in spite of SVO developing and running the I-Pace in the e-Tophy race series that supports Formula E, the battery crossover will not be the first electric car to receive an SVO makeover.

Speaking to Britain’s Auto Express magazine, van der Sande said: "We will be developing electrified versions of our cars, be that fully electrified or plug-in hybrids.

“I-Pace is not on that path, but there are various other things we are working on which we can’t talk about, but we’re very interested in electrification. That’s why we get involved in the eTrophy. 

“The technology transfer, the learning applies to that car and other cars but we’re not planning an SVR I-Pace at the moment.”

Part of that reason could be because the I-Pace sits on its own unique all-electric platform that won’t be used for any other JLR product.

The new XJ luxury sedan, to be unveiled later this year, will be the first car to make use of JLR’s new MLA architecture that’s set to be used across the entire large Jaguar and Land Rover product line-up in the coming years.

SVO’s boss has suggested it makes more sense for his division to work on that platform, making an XJ SVR a possibility, with the high-performance technology then rolling on to other all-electric models.

Another all-electric, full-size Jaguar J-Pace SUV and an as-yet unnamed Land Rover crossover are also ikely to use the MLA electric car platform.