Jaguar cutting wagons and manual transmissions from US market

As Jaguar looks to recover from poor financial results the past couple of years, the British company has implemented some major cost-cutting programs. The latest victims of the plans are wagons and manual transmissions in the United States.

Speaking in an interview last Monday, Jaguar USA CEO Joe Eberhardt noted Jaguar will drop the manual transmission, and the wagon body style will go away in the U.S., according to the The Detroit Bureau. Eberhardt named the shocking shift to crossovers and SUVs in the market as one major area that simply took the company by surprise. That’s not to say Jaguar wasn’t prepping for the shift; the brand didn’t prep quickly enough.

Jaguar has two cost-cutting plans, called “Charge” and “Accelerate,” which aim to save $3.3 billion over time. However, Jaguar will also have to take a closer look at some of its sedans and sports cars. Manuals will disappear from the U.S. after 2019, but timing wasn’t disclosed on when the wagon body style will run its course. Jaguar only offers one wagon in the U.S., the XF Sportbrake.

2018 Jaguar XF Sportbrake

Discussions will also continue whether other models are still viable, such as the XJ range-topping sedan. Diesels may be on the chopping block as well as demand slides in the U.S. and Europe alike.

How unpopular are Jaguar sedans? Two crossover models, the F-Pace and E-Pace, make up 70 percent of the brand’s volume. The other 30 percent is divided up among the XE, XJ, XF, and F-Type. The I-Pace electric crossover is just now reaching showrooms.

2020 Jaguar XE

2020 Jaguar XE

We’ve previously heard rumors that Jaguar plans to turn into an all-electric brand. The move would supposedly see Jaguar drop the XE and XJ in favor of another electric crossover. The XF, however, would remain and rival new electric flagship sedans coming from other brands, as well as the Tesla Model S.

Yet, the potential plan runs counter to news we heard from Jaguar CEO Ralf Speth. In January, he said Jaguar sedans would be safe and play an important part in future electrification efforts. It’s possible Speth wasn’t speaking on behalf of U.S. operations, however.

Editor’s Note: This story has been updated to note that timing has not been determined for the end of wagon sales in the U.S.

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