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

Jaguar attempted to reach the masses with its compact X-Type, but initially the car didn't completely catch on despite attractive

Jaguar's decision to play it safe in its 2004 XJ design language seems to have backfired. (Photo: Jaguar Canada)

traditional Jaguar styling, luxurious appointments and a competitive price. It now makes up half of the brand's sales. The S-Type has done better, but the completely redesigned XJ, that came market last year, looks so much like the outgoing 2003 model that even Jaguar's faithful could hardly tell them apart. Jaguar's decision to play it safe in its XJ design language seems to have backfired, and the car hasn't raised much interest and is not selling well. No doubt all the negative emotions displayed by BMW loyalists over Bangle's new styling direction helped to keep the XJ conservative, but conservative is one thing and noticeable progression is another.

Jag's Ford owner has experienced similar frustrations with its Freestar minivan, which looks so much like the old Windstar

Conservative is one thing and noticeable progression is another. (Photo: Shawn Pisio, Canadian Auto Press)

that no one has noticed the change. Nissan went the opposite direction and build a radical minivan that no one wants either. Getting a car right in this highly competitive market is a fine balance indeed.

The result of Jaguar's failure to attract new buyers, with only 126,000 units sold in 2003 and nowhere near the results needed so far in 2004 is the closure of the legendary Browns Lane factory in Coventry, England, where Jaguar cars have been produced for the last 50 years. Now Jaguar will go from three plants to two, and the XJs and XKs built in Browns Lane will be moved to the Castle Bromwich plant in Birmingham, home of the S-Type.