Industry Report: Jaguar Restructures, Closes Plant and Kills F1 Program All in One Day

Jaguar doesn't make a sport utility, but rather many of its dealerships carry Ford Motor-owned Land Rover to take care of this

The stigma of poor reliability still hangs over the Jaguar brand, although nothing could be further from the truth. (Photo: Jaguar Canada)

market. That British brand is an altogether different story, involving enough of its own red ink to write a dozen Tom Clancy novels, so it would probably be best not to go there for the moment.

Another problem Jaguar faces, again from the uninitiated, is a perception of poor reliability. According to respected analysts J. D. Power and Associates, nothing could be further from the truth. In this year's Initial Quality Study (IQS), which is based on responses from more than 51,000 purchasers and lessees of new 2004 model-year cars and trucks, surveyed after 90 days of ownership, Jaguar placed 3rd out of 37 nameplates, beating out rivals BMW and Mercedes-Benz and all other competitive luxury brands less Lexus and Cadillac that places 1st and 2nd respectively. In this year's Vehicle Dependability Study (VDS), in which owners of 2001 model year cars we surveyed, Jaguar didn't fare quite as well placing in 25th out of 37 nameplates, which goes to show the quality improvements it has made in recent years. As poor as its 2004 VDS rating sounds, it still beat out Mercedes-Benz, Volvo and Volkswagen, that latter

Ironically, Jaguar is also the victim of too much prestige, people believe the brand is way beyond their financial reach. (Photo: Jaguar Canada)

of which is now attempting to sell cars in Jaguar's premium league. Audi is also only 3 places ahead, and far behind on the IQS. But perception is what sells automobiles. After all, how many new car buyers know that Hyundai actually rated higher than Toyota in this year's IQS? Not many for sure.

Where Hyundai is negatively affected by perceptions due to its bargain-basement Korean lineage, most buyers don't think they could afford a Jaguar so they don't even bother visiting the dealer. It's the victim of too much prestige, the exact opposite of what brands like Lexus and Infiniti are attempting to achieve as they battle for respect alongside long-established brands such as BMW and Mercedes-Benz.