Jaguar Land Rover might buy another luxury brand that it doesn't need
What it needs is a mainstream or ultra-luxury brand
What path would be ideal? Probably going even farther upmarket. Supercar
makers and ultra-luxury brands continue to sell well, and there's the
potential for significant profit by layering on features and content to
existing platforms. Perhaps the best possibility for a high-end
complement to Jaguar Land Rover would be Aston Martin. Not only does it have a strong reputation and line-up, it also could handle both supercars and luxury sedans, thanks to its Lagonda sub brand. Of course it would require Aston Martin to be receptive to a purchase.
Going to a mainstream brand would be riskier, since the profit margins
are slimmer, and the buyers are often less tolerant of reliability
issues. But if the company were to move downmarket, Mazda
could be a potentially strong brand, and one that would fit in with
Jaguar Land Rover. The cars are stylish, sporty, and generally more
upmarket than competitors, and the vehicles are reliable. Mazda would
also offer some unique technology that could be distributed among the
JLR line.
Regardless, adding more of the same to Jaguar Land Rover won't do much
for the company. If it wants to expand, it needs to look at other
markets, rather than locking itself up in the mainstream luxury world.
(AutoBlog.com)
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