EVs Are Fundamentally Changing Jaguar's Dealership Philosophy
[Feb. 21, 2020]
In December, Jaguar released a software update for its electric I-Pace SUV, essentially upping the range of its 90 kWh SUV to 292 miles (“essentially,” because this upgrade doesn’t actually impact the I-Pace’s official EPA rating). The software update, Jaguar said at the time, utilized a series of upgrades made possible through lessons learned in its eTrophy race series. According to Jaguar, the software update ultimately adds 8% to its EV SUV’s range, resulting in about 12 miles of additional in-town driving. But, in this world of over-the-air software updates, a strange line appeared in the press release announcing the I-Pace’s improvement: “Customers are being invited to take vehicles to their Jaguar retailer to receive the complimentary update.” That’s weird.
Now armed with more information, however, a dealership-installed software upgrade actually makes sense. As does a Hot Wheels racetrack. Stay with me here...
During an interview at the 2020 Chicago Auto Show in early February, Jaguar North America President and CEO Joe Eberhardt revealed that Jaguar is purposefully pushing customers to Jaguar’s dealership network.
“There is a new business model that retailers will have to get their head around, and we’re working with them to work it out,” Eberhardt said of the fact that service intervals for EVs are longer than those of ICE vehicles. “There are still going to be mechanical issues with the car; [but] yes, there’s less of them. But then [dealers will] need to provide other reasons for consumers to spend time, and ultimately money, at dealerships, and that’s the whole experience economy that we started to transition to at the OEM level where we’re spending money curating things like our [Land Rover] 4xFAR festival.”
“If we just use the old model of the dealer sells the car and the customer comes back when it breaks, that doesn’t work anymore,” Eberhardt added. “[EVs] still will break, but to a lesser degree [and] with a lesser volume of repairs. So we need to give customers other reasons to come spend time at the point of retail, and connect with them through experiences, through events, and offer other value-added experiences.”
Jaguar’s most recent dealership experience involves a partnership between Jaguar and Hot Wheels for the Ultimate Track Engineering Challenge, which debuted at the 2020 Chicago Auto Show. At that auto show, Jaguar set a Guinness Book of World Records record for the most loop-the-loops in a gravity-fed Hot Wheels track.
This Jaguar and Hot Wheels challenge is part of a national engineering scholarship contest, encouraging others to design the most challenging track, with a $50,000 donation going to the winning institution’s scholarship fund. And this ties into Jaguar dealerships how?
Per Jaguar’s press release:
“Students interested in participating in the #JaguarHotWheels challenge should work with their local Jaguar retailer to come up with a concept. Jaguar retailers will have a set amount of track components (over 100 feet) to work with to create their vision of the ‘Most Challenging Track.’ Students will build their track at their local Jaguar retailer and attempt to set a record lap at the retailer launch events for the new F-Type by April 30, 2020.”
“All Hot Wheels track components supplied to dealers are required to be used and students may not add additional track components to their set. Students are able to modify track components, such as cutting turns and reducing the length of straight sections, as they deem appropriate. Students will then be judged on the Jaguar vehicle that completes the full track with more loops than the new current world record in the shortest amount of time; they must also incorporate both the F-Type and dealership elements into the track design. Students and Jaguar Retailers will need to document a Hot Wheels Jaguar vehicle successfully completing the track with an unedited, continuous video of one full circuit to be deemed eligible, with proof of timing from start to finish.”
Indeed, as odd as it may have seemed in December 2019 that the I-Pace’s software update was only offered through Jaguar’s dealership network, it’s now obvious that this is, in fact, part of a calculated plan to assist Jaguar’s dealership network transition to EV sales, especially as Jaguar sets to release an EV version of its XJ.
What will happen if Jaguar’s dealerships fail to transition to an “experience economy”? Tesla has been busy battling for a dealership-free future, so one day we may see established OEMs like Jaguar join the fray.
(Image courtesy Jaguar)
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