Dear Thierry: Our advice for Jaguar Land Rover's new CEO

For most of the decade your predecessor Sir Ralf Speth was in charge, JLR posted successive achievements. In 11 years, the two marques have made pre-tax profits totalling £10 billion-plus (even after taking into account a bone-shaking £4bn loss in 2018 after the ‘perfect storm’ in China). Headcount has trebled since 2009, revenue has quadrupled and investment has expanded fivefold. JLR now has magnificent new test tracks and engineering facilities.

A much-needed new look has been found for Jaguar. The JLR product portfolio has expanded from eight to 13 models. Annual sales have risen 150% to 500,000 cars, admittedly lower than the 614,000 peak three years ago and likely to go lower in the short term. But JLR today remains the UK’s biggest R&D spender and one of its best innovators, already operating carbon-neutral factories. A new Destination Zero mission (zero accidents, zero congestion, zero pollution) is well under way. Your fresh voice can remind the world of this. Which is absolutely not to say the situation can’t be improved. We’ve divided our suggestions into three sections: JLR corporate, Jaguar product and Land Rover product.

JLR corporate actions

â–  Take immediate control of statements about JLR’s policy and future. The Tata chairman recently announced that a chunk of JLR would not be sold, as is sometimes suggested, to a partner. That announcement could have been a powerful statement from you.

â–  Put an early end to the ‘will they close Castle Bromwich?’ debate. Kill it or preserve it – depending on your future decisions about the company’s ideal volume – but don’t allow further dithering.

â–  Carefully consider accepting current Jaguar Land Rover volumes of around 400,000 to 500,000 cars a year or perhaps even shrinking, while enhancing profitability by concentrating on models that start further up the pricing scale. One strong argument says Jaguars should start around £45,000, not below £30,000. We’d support the notion of fewer models, maybe less practical but conceived always to inflame buyer desire.

â–  Devolve your marques further. Don’t just move Jaguar and Land Rover apart but consider separating Range Rover, too. Let Land Rover carry kids and tow the horseboxes; set Range Rover free as the aspirational leader. Forget selling Jaguars to BMW 3 Series buyers; turn Jags into Bentleys for people who aren’t inclined to spend that much.

â–  Chase quality as never before. It’s no secret that JLR still spends too much on rectification of new cars. Hire the best quality experts from VW, Toyota or Daimler and give them carte blanche to change your processes and designs to enhance quality.

â–  Separate your Jaguar and Land Rover Classic/Special Vehicle operations, at least in the eye of outsiders. Sure, it’s good housekeeping to bundle them in an outer-Coventry industrial unit, but that does little for brand loyalty. People don’t buy a JLR.

â–  Overhaul communications policy. Both Jaguar and Land Rover trade on exceptional post-war heritages built more by accident than design, but the era of happy accidents is over. You need far-sighted, high-powered marque strategists along the lines of Ford’s legendary Walter Hayes to devise ways of utilising your wonderful back stories and adding new strands.

Jaguar actions

â–  Redouble your efforts to find a modern mission for the Jaguar brand. BMW makes driving machines; Audi does high technology; Mercedes invented the car. What does Jaguar do? At Autocar, we think the marque stands for superb prestige-car value, driving that combines sporting character with great refinement and – above all – exceptional beauty using the human forms of the D-Type or E-Type. Your Jaguar design chief, Julian Thomson, is already working hard on this last part.

â–  Find a halo product for Jaguar along the lines of the Land Rover Evoque, which grew out of a ‘no rules’ concept project. We see this as nothing less than the golden key to Jaguar viability.

â–  Take bold action (see above) to lower Jaguar’s age profile. It suffers from ‘this is my last car’ syndrome. We’d love to see a prestigious and superbly styled concept that takes advantage of the built-in cuteness and sportiness of small size. An electrified A-Pace, perhaps.

â–  Launch your electric luxury saloon as soon as possible. Jaguar’s advantage in beating the market with the Jaguar I-Pace is leaking away because that fine car looks more and more like a one-hit wonder.

â–  Take much more trouble to give the Jaguar F-Type sports car extra gravitas. Three-quarters of today’s Porsches are saloons or SUVs, yet the 911 is still revered as the marque’s centrepiece in a way that the F-Type never has been. Give it a mission and a back story. And a big future.

â–  Decide a firm Jaguar saloon policy. Pundits say saloons still make up 50% of world demand for cars. Find a way to participate better in that demand. Maybe you combine your two models (the Jaguar XE and the Jaguar XF), adding beauty and luxury along the way.

â–  Think hard about another project along the lines of the C-X75 supercar your predecessor now regrets not putting into production. That car’s concept generated worldwide attention. Another would do the same. How about a C-X90?

Land Rover actions

â–  Give Range Rover its freedom. Point it squarely at the Bentley Bentayga on price and prestige.

â–  Face up to the issue that Land Rovers are commonly viewed as unfashionably heavy and diesel powered, perhaps by showing us what a lighter, more efficient electrified 2025 concept could look like. Buyers need a more progressive view of the future.

â–  Increase toughness in Land Rovers. Greater emphasis on ‘relevant capability’ rather than ‘drive to school’ factors is needed because the latter has been overemphasised in the recent past.

â–  Find a design advocate and leader with the same high profile and authority as current incumbent Gerry McGovern (age 64), ready to step up whenever he chooses to go. Much of Land Rover’s current success is down to McGovern’s ability to carry fine design right through to production.

â–  Get on with expanding the third Defender model pillar, not least to show that the pillar theory is still valid. We’re impatient about Discovery progress, too. That’s the one recent Landie that didn’t work.

â–  Give new impetus to Land Rover Experience, the experiential marketing business. There are centres around the world, but the company seems to have stopped talking about them (and not just for Covid-19 reasons). These provide oxygen for much-missed ‘Mr Land Rover’ characters the company has always had. The modern company seems to have lost the awareness that it still needs heroes.

Given your other pressing tasks, Thierry, not least just keeping this thing afloat while controlling costs and chasing quality as never before, running JLR looks awesomely difficult. We admire your courage in taking it on. With our loyal readers, we also wish you great and lasting success. To a person, we’re already excited about the fine new models that success will bring and, of course, we have many news pages ready and waiting.

With all best wishes,

Steve Cropley

Outgoing CEO Ralf Speth on JLR's future

In tough times, it’s difficult to see the big picture, which is one reason why Britain’s highest-achieving car industry chief in living memory, Jaguar Land Rover CEO Sir Ralf Speth, slips into retirement with none of the fanfare that would usually attend such a high-profile departure. Another reason is that this is how he likes it.

Despite recent reverses, Speth and his Tata backers have trebled the company’s size in a decade, establishing it as the UK’s biggest car maker – with a respect and presence on the international stage never seen before. They have equipped it with last-word design and engineering facilities, spread its manufacturing capability around the world, moved it firmly into electrification with a new battery assembly centre and encouraged it to think far into the future via a project Speth dubs Destination Zero: no congestion, no pollution, no accidents.

We meet in JLR’s mighty Gaydon design and engineering hub, opened just a year ago, but to Speth’s regret the place isn’t buzzing as normal from the presence of its usual 12,000 inmates. Most are still working from home. He firmly believes ideas and innovation are fed by meetings in canteens or coffee shops and passionately looks forward to their reinstatement. Not that he’ll be around to participate. His new role as non-executive deputy chairman will keep him apprised of major JLR events but that’s as far as it will go. “Whoever needs my help can have it with pleasure,” he says, “but I will also make sure the new team has all the freedom I had. The CEO is the CEO. When I took over, Mr Ratan Tata explained our major objectives, then allowed my team and me to do things our way. He trusted us. It will be the same for Mr Bolloré.”

There is no handover period, it seems. Speth says he had met Bolloré a couple of times before the recruitment process began but doesn’t know him well. The new CEO’s first week, under way as you read this, started with Jaguar and Land Rover product reviews on Monday and Tuesday, then a ride-and-drive session on Wednesday. Speth won’t participate.

“Mr Bolloré is a seasoned manager,” says Speth. “He will have his own ideas and he knows what to do. He worked a lot in the supplier area, so he has seen car making from many angles, not just one. And he was the successor to Ghosn, so he has a good profile. We can rely on him.”