Jaguar Land Rover (JLR) dealers in Canada are considering joint legal action as the company plans to reconfigure its operations, particularly its Jaguar brand, as part of a new ultra-luxury, all-electric strategy. This shift, aimed at emulating the success of brands like Aston Martin and Bentley, involves significant changes in how cars are sold and a drastic reduction in sales expectations.
The move comes as Jaguar, in particular, has been undergoing a transformation, moving away from the German-dominated premium space to focus on higher-end, lower-volume models. This shift has created tension with its Canadian partners, especially regarding the reduction in sales numbers from a target of 8,000 units to just 700 per year, as well as the transition to an online retail model.
Dealers have been in discussions with JLR’s Canadian arm to resolve these issues but are prepared to file legal action if an agreement is not reached soon. A spokesperson for the company declined to comment on retailer issues but affirmed the company’s commitment to a franchised retail network.
This development reflects a broader trend of change and challenge within JLR. In 2013, the company announced ambitious global expansion plans, aiming to sell 1 million units annually. Canadian dealers invested heavily in this vision, with one dealer recalling a sales goal of 12,000 Land Rovers and 8,000 Jaguars.
Despite early success, with Jaguar sales reaching a high of 4,620 units in 2017, numbers dwindled to just 1,118 in 2023. The new Reimagine strategy, which focuses on ultra-luxury EVs, has left dealers skeptical about achieving even the reduced goal of 700 units when a new model is introduced in 2025.
In the US, dealers have been offered the chance to drop the Jaguar portion of the franchise in exchange for additional Land Rover allocations. A similar strategy was reportedly offered in Canada, including the retention of servicing and the sale of certified used Jaguars. However, Canadian dealers, who have made substantial investments in their Jaguar-Land Rover combined facilities, are seeking adequate compensation if they relinquish their Jaguar franchises.
