Jaguar Dealers in Canada Prepare Lawsuit Over JLR’s EV Strategy

Jaguar’s Brand Reinvention

Jaguar Land Rover (JLR) dealers in Canada are gearing up for a joint lawsuit as the company plans to overhaul the Jaguar brand. Jaguar’s new strategy involves transitioning to an all-electric lineup, which will significantly impact how cars are sold and reduce sales expectations.

Dealers Discontent

Dealers who heavily invested in the Jaguar brand are dissatisfied with the changes and are seeking compensation. The company’s plan to downsize sales numbers from 8,000 units to just 700 per year has caused tension among Canadian partners.

Challenges Ahead

Despite initial success, Jaguar has faced challenges in implementing its new electric vehicle strategy in Canada. The brand aims to move upmarket and focus on ultra-luxury EVs, mirroring brands like Aston Martin and Bentley. However, this shift has not been well-received by dealers who fear the impact on their businesses.

Legal Action Looms

If a resolution is not reached soon, Canadian dealers are prepared to take legal action against JLR. The company’s plans to reduce sales volume and transition to online retail have created uncertainty and discontent among dealers who were promised ambitious sales targets in the past.

Compensation Demands

Dealers who invested millions in expanding their facilities to accommodate both Jaguar and Land Rover brands are now seeking adequate compensation. The offer to drop the Jaguar franchise in exchange for additional Land Rover allocations is not as appealing as dealers had hoped, leading to growing impatience for a resolution.