CO2 Regs Make Jaguar a Better Buy Than Land Rover?
First, T he Wall Street Journal reports that forthcoming European CO2 regs are casting a pall over Ford's sale of Jaguar and Land Rover. The European Union has announced its intention to reduce the new car CO2 levels by roughly 20% by 2012. As the British brands don't have more-fuel-efficient cars to offset their less-efficient models (i.e. all of them), potential suitors are worried that the new regs will price the automakers out of existence. Using that logic, Just-auto [sub] reports Management consultants Arthur D Little fancy Jag more than Landie. "While we do not foresee near- or mid-term legislation that would actually ban high footprint SUVs (chiefly due to the European job losses that would result) legislation will inevitably toughen. We consider this to threaten over half Land Rover's volume – only Range Rover and Defender are relatively secure… There is no alchemy involved in a Jaguar turnaround; good financial performance can be achieved through realigning the strategy with the brand values, leading to a lower volume (50-60,000 units a year), high gross margin business producing premium sporting saloons and grand tourers." Sounds like a plan to us.
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