It’s rare for a car maker to reverse launch plans for a model already confirmed for production and put on sale, but Land Rover did just that last week in axing the Range Rover SV Coupé.
This week, it has followed that up by confirming to Autocar that the Discovery SVX concept car would not now make production as had originally been planned. While a loss of face on both of these is inevitable, both decisions are actually confident and positive.
A two-door Range Rover limited to 999 units (if Land Rover could find the buyers…) and priced at £240,000 might bring some marginal short-term financial gain but, with budgets squeezed and Jaguar Land Rover facing serious challenges, this isn’t what it needs for the fight in which it is now engaged.
The car was a distraction, its unique body (only the bonnet and part of the tailgate were shared with the standard Range Rover) taking engineering and company resources away from Land Rover when real innovation and invention are needed most.
That’s not only around models like the upcoming Defender but also electric cars, an area in which Land Rover, unlike its Jaguar sibling, has yet to show its hand. The decision to axe the Discovery SVX, which was not seen as a production car even if it was confirmed, was taken for slightly different reasons but with the same sentiments behind them.
It has bitten the dust as Land Rover is no longer planning to offer the Discovery with a V8 engine, but that decision takes down with it what should have been the roughest, toughest model Land Rover makes.
The Discovery SVX also helped in part fill the gap of the Defender as best it could as the most extreme Land Rover in the range, at a time when the launch date of that car still wasn’t clear.
But now Land Rover has confirmed the Defender will launch this year, so why would buyers opt for a Discovery SVX when they could have the real thing? While a good-looking and seemingly sensible car back in 2017, now it would be a distraction to the Defender.
There are no wounds to lick for Land Rover here. The company has innovated more than most car makers in recent years and been rewarded with both critical acclaim and commercial success. With these decisions, it can get back to making models that really push the company forward.
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Revenue declining. No profits
Revenue declining. No profits for last 4 years after being forced to come clean on 80% capitalised R & D. Cash flow set to stay negative for 2 years. Big redundancies. Dragged value of Tata down to $8 billion, shares at all time low. Junk bond status, outstanding paper selling for 77c on the dollar. Bond rate spike to 9%. Price of CDS up over 600%. Forced to borrow $1 billion from off shore banks in 2018. Another $1 billion needed from banks to cover bond repayments due in next 14 months. No authentic hybrid strategy. One over-priced, low range, identity-crisis stricken EV. Identified with ageing diesels and gas guzzling petrols. Brexit. China.
No wounds at all, then.
Big redundancies? They are
Big redundancies? They are only reducing staffing down to where they were two years ago...
Tata’s shares are down but JLR represent most of their market capital value anyway. So there is also an issue at Tata which you’ve not mentioned.
Not sure I follow your point re the I Pace, given its outselling Tesla in most European markets now and is a tremendous sucess.
Also JLR have plenty of Hybrids arriving.
JLR have 3 problems :
China, issue there caused by Donald Trump trade war, but may be about to go away.
Diesel - Thank VW for that problem, but plenty of hybrids and electric cars are in the way
Brexit - that could finish them, but assuming we reach a deal will send shares soaring.
dDropping the SVR and luxury Range Rover make sense. Bentleys model is a flop after all and they probably didn’t get to the point where heavy machinery had been bought to make cars it.
New Defender is defying expectations on here by looking like it will have a truly utilitarian model and with a pick up version could make it big stateside. Overall only the Disco is a problem child for Land Rover.
Jags problems are greater but they are quick into electric cars so let’s wait and see.
Finally a few years ago they made 2 billion dollars in pure profit. So as long as no more big losses come in I think they might be a great stock to buy.
JLR is LOL
JLR haven't a clue, they make nice to drive vehicles, a Jag XF was one of the best handling cars I've ever driven but most people don't buy cars on that basis. JLR desperately need new designers not the old fart brigade that Autocar reveres. Reminds me of that "we know best" last words of Rover...
Did Mr Tisshaw really
Did Mr Tisshaw really describe the Discovery SVX as "good looking"?