Part 6/14:
Lesson Three: Growth Masks Weaknesses. Rapid sales increases can hide underlying problems. In Jaguar’s case, the brand still lacked a clear identity, and most profits stemmed from Land Rover, not Jaguar itself. Industry insiders noted that Jaguar was likely selling cars at a loss by the late 2010s, subsidized by Land Rover profits—a precarious situation for long-term sustainability.
As early as 2017, sales growth stalled. By 2021, US sales plunged from nearly 40,000 to just 17,000, and by 2022, the figure fell below 10,000—less than a rounding error in the market share. Several factors contributed: aging product lineup, waning novelty of SUVs, a failed strategic bet on diesel engines post-VW’s diesel scandal, and inability to compete with Tesla’s electric innovation.