Wednesday, March 30, 2016

Jaguar Scraps Plan To Develop XK Successor


Raise a toast for the Jaguar XK, people. The model’s lineage has officially been taken to the graveyard after Jaguar scrapped plans for a successor to the XK name out of concern that such a model would impede the growth and volume of the F-Type SVR.

Jaguar Land Rover North America CEO Joe Eberhart made the declaration to Car & Driver, saying that building a flagship coupe, the spot once occupied by the XK, isn’t a part of Jaguar’s plans anymore. According to Eberhart, Jaguar came to that decision after determining the F-Type SVR already fits into that category and having another model share in that space doesn’t make any sense whatsoever.

Eberhart’s explanation makes sense considering that the F-Type SVR already has the technological tools and performance capabilities of a flagship sports coupe. More importantly, the F-Type SVR’s $125,950 price tag is already steep enough that introducing another sports coupe in the same price range would only lead to the two models cannibalizing each other’s sales volume.

It could work under different circumstances, but since Jaguar is determined to double its sales volume this year, the margin for error is extremely thin and the company can’t afford to take too many risks that could be deemed unnecessary. It would’ve been nice to see the XK, or at least its successor, return after getting phased out in 2014, but such as it is in the auto industry.

Companies need to make compromises and understand the bigger picture of what they’re trying to accomplish. In Jaguar’s case, a successor to the XK would’ve been exciting from a buzz point of view. From a business perspective however, it just doesn’t make sense now that the F-Type SVR has effectively occupied its old spot in the lineup.

Continue after the jump to read the full story.





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