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Scenario: British Motor Partners take stake in JLR/Volvo


wescoent

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As things have slowed down again, let's get some discussion before the sales announcement.

 

Say you're the general partner of British Motor Partners, a fictional private equity partnership, and you've decided to buy an 80% stake in Jaguar, Land Rover, Volvo, or a combination or such. You have access to Ford engineering, but otherwise, you're running the show independant of Ford. What's your product plan? Strategic plan?

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As things have slowed down again, let's get some discussion before the sales announcement.

 

Say you're the general partner of British Motor Partners, a fictional private equity partnership, and you've decided to buy an 80% stake in Jaguar, Land Rover, Volvo, or a combination or such. You have access to Ford engineering, but otherwise, you're running the show independant of Ford. What's your product plan? Strategic plan?

 

Well to put it in simple terms, you don't really have access to any of FoMoCo's engineers, just GPDS. My guess is that since DaimlerChrysler just implemented DCPS in their production facilities that not much would change as far as personnel, just the generic blueprints available on how to structure events for building the product. So as an analogy, there really wouldn't be any problems, until current-year models and part sharing agreements come to an end.

 

BTW Jaguar Engineers == Land Rover Engineers, its just the they get to work on the Jag during 9-5, LR is worked on after-hours and the quality really shows...

Edited by g48150
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I'll start with Jaguar.

 

Jaguar starts by launching the XF sedan as planned. Big spending on advertising and product placements. If people know about this car, it will sell itself. More importantly, as profits come in, they need to be re-invested into the car for updates.

 

Next is the launch of the new XJ in 2009. Continue with development, and market it as a super high tech, high performance, yet green vehicle, which it will be with its low weight and high-tech engines.

 

The next big project Jaguar would undertake would be development of an electric roadster. Think Tesla Roadster, only Jaguar. The XE (E for electric) would be a huge hit in enviro-conscious Europe, and place Jaguar on the bleeding edge of technology and coolness. The architecture should be pure Miata, as to reduce development cost.

 

Another relationship must be developed with Volvo to supply Jaguar with inline-6 engines of Volvo specifications.

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The next big project Jaguar would undertake would be development of an electric roadster. Think Tesla Roadster, only Jaguar. The XE (E for electric) would be a huge hit in enviro-conscious Europe, and place Jaguar on the bleeding edge of technology and coolness. The architecture should be pure Miata, as to reduce development cost.

 

I had you until here.

 

Miata-based Jaguar? With an electric motor? Oh yeah, that would go over REALLY well. :hysterical:

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I had you until here.

 

Miata-based Jaguar? With an electric motor? Oh yeah, that would go over REALLY well. :hysterical:

 

It's not like we can just shorten the XK-platform. And if any of you do racing, you should know that the Miata is an incredibly balanced and capable sports car... it's just the Miata name and chick-car image thats dragging it down.

 

And you gotta pander to your audience. It's cool to be green in Europe right now... why not capitalize on it while we can?

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It's not like we can just shorten the XK-platform. And if any of you do racing, you should know that the Miata is an incredibly balanced and capable sports car... it's just the Miata name and chick-car image thats dragging it down.

 

And you gotta pander to your audience. It's cool to be green in Europe right now... why not capitalize on it while we can?

 

Yes. You have to pander to your audience. Jaguar's audience would not accept a reskinned Japanese car for a roadster, no matter how capable it is.

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As things have slowed down again, let's get some discussion before the sales announcement.

 

Say you're the general partner of British Motor Partners, a fictional private equity partnership, and you've decided to buy an 80% stake in Jaguar, Land Rover, Volvo, or a combination or such. You have access to Ford engineering, but otherwise, you're running the show independant of Ford. What's your product plan? Strategic plan?

First of all, we haven't bought Volvo: It's a distraction. We don't speak Swedish very well.

 

Looming issues with Jaguar/Land Rover:

 

1) Too much production capacity/workers

 

2) Potentially disastrous CO2 restrictions

 

3) Land Rover quality

 

----

 

Seeing nothing wrong with Ford's engineering, we continue to use Ford's services for all the heavy lifting, and we refocus the remaining staff on -design-.

 

By contracting out engineering to Ford, we are able to focus on producing exceptionally beautiful cars.

 

With a tighter ownership structure, we move our marketing message quickly. The aim is to have Jaguars conspicuously (but not too conspicuously, of course) present in very fashionable locations. The 'Gorgeous' campaign is expanded and updated over time. The aim is that beauty becomes the 'signature' element for all Jaguars (Lexus = quiet & reliable, BMW = ultimate driving machine, MB = 'I don't have as much money as you think I do', Jaguar = 'drop dead gorgeous').

 

----

 

We introduce to the UK the concept of the buyout. In order to close Halewood or Castle Bromwich (either/or) we offer generous buyouts to employees.

 

Ultimately, we want to sell no more than 200,000-240,000 Jaguars in any given year, world wide (cf. 1M Mercedes and BMWs). And we want to build them in only one plant.

 

Similarly we consolidate Land Rover production at a single plant. We address Land Rover quality vigorously, aiming for 20-30% improvements in TGWs year over year until Land Rover reaches the same level of quality as Jaguar.

 

By purchasing our engineering from Ford Motor, and using them as a supplier for invisible parts (and not being overly particular if the underlying HVAC elements are -also- in the Mondeo, Fusion, and Taurus, as long as they're reliable), we dramatically reduce our overhead, while having the advantage of--through our new relationship to Ford as a customer--dictating our specifications, instead of having them dictated to us.

 

----

 

We collaborate with Ford on advanced hybrid concepts for the XK & XJ; powered by an Atkinson cycle version of the 3.2L I-6. Plug-in XK & XJ hybrids go on the market in the U.S. and in Europe powered by Li-ion batteries.

 

We launch versions of the LR SUVs with hybrids. The LR2 receives a 'powerpack' version of the hybrid system used in the Fusion/Escape/Edge

 

In true Land Rover fashion, however, the battery casings, wiring, and electric motor are ready to take on 'anything.'

 

----

 

Why hybrids? Because we realize that we can't comply with upcoming EU (and CAFE) regulations by switching entirely to diesel. We go hybrid with gas, and make diesel available.

 

----

 

On diesel, we become partners with the Ford/PSA JV, and our firm provides capital for research on affordable non 'pee' based means of complying with CARB emissions regs. Our goal is a 50 state luxury-class diesel engine by 2012.

 

----

 

Thus our focus becomes three-fold:

 

1) Practical: consolidate production to a rational (and profitable) footprint. Utilize Ford engineering to reduce overhead. Define a corporate structure that effectively defines Ford's role from the very beginning; Engineering services provided by, and parts purchased through, Ford must be well defined from the beginning, otherwise efficiencies become difficult to achieve.

 

2) Beautiful: Make Jaguars objects of desire--that which distinguishes Jaguars from their competitors should always be difficult to put into words.

 

3) Visionary: Collaborate closely with Ford/Volvo and Ford/PSA to develop:

a) plug-in/Li-ion hybrids off the 3.2L 6

b) 50-state diesels

c) diesel hybrids.

 

----

 

JLR benefits from having stable management, a stable management structure, and a much shorter 'chain of command'; no longer will up and coming executives be taking 2-3 year stints at the head of JLR, no longer will engineers and designers spend a few years working at JLR then moving on to other parts of the Ford empire.

Edited by RichardJensen
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Volvo:

- Make small SUV in Halewood and cancel all Swedish Expansion factory plans. UK capacity must be used up first. Base on Freelander and over rule Swedish managment as necessary. UK likely to be second biggest market for it anyway!

- Make low volume Sports car based on Jag F type, but cheaper....this should make Volvo cooler and keep costs low

- Make Volvo City Car (MINI sized).

 

Jaguar:

Launch XF in Halewood

Launch totally new looking XJ (follow XF styling) - At Halewood

Launch F type - At Halewood

Launch XF convertable - AT Halewood

Launch SUV based on new XF - Solihull

Replicate production in China

 

Rover:

- Open new Chinese car factory

- Heavily restyle (i.e. change all body panels) X type, S type and XJ

- Relaunch all the above with Rover brand

- Ship into the USA from China and target Mercury (i.e below Jag but above Ford)

- Make CKD kits at Castle Brom (now no longer a Jag plant, but low volume specialist plant)

- Rover to be Land Rover's little brother, marketing will be done together

 

Land Rover:

- Keep all models but replace with much more efficient models

- Make upmarket F-150 in new Chinese plant, target mostly non European markets

- Make Range Rover Sports Coupe in Solihull

- Launch Freelander sport

- Launch Landie

- Launch Land Rover Industrial vehicles division - target Military and JCB markets...(long term plan)

 

Chinese plant is critical to plan. Rover will penetrate Chinese market with affordable Mercury rival. Jag will aim to hurt BMW by being more exclusive. Volvo and Land Rover about growth. Land Rover pickup & Landie key part of plan to double Land Rover production. Land Rover 'Industrial' part of long term vision to grow into Niche market.

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Me? wait for the XF to come if it bombs I'd would rip jaguar (and LR) to pieces and then sell them, maximum profit, nobody loses.

 

Selling Jag before the XF launch does seem crazy. And what if the XF is a run away sucess? Ford may even want to reconsider selling.

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