Jaguar considers a compact luxury sedan

British automaker Jaguar, owned by Indian automaker Tata Motors, may be preparing a competitor for the popular segment-leading BMW 3 Series lineup. For Jaguar, a new model would be its second attempt to compete with BMW, ten years after introducing its first attempt, its X-Type sedan.

European competition

Jaguar must expand its line to compete against the strongest European brands, each based in Germany. Mercedes, BMW and Audi have been gaining market share, at the expense of Jaguar, Volvo and other premium brands. Jaguar, with Land Rover, is controlled by Tata and could use its Indian manager to provide the cheapest and most needed building capacity. Both brands currently employ old UK manufacturing plants for production, but may not have the space to undertake an entry-level model.

The news that Jaguar is interested in a new entry-level model comes from Adrain Hallmark, the company’s global brand director. New to the role, Hallmark hails from the Volkswagen Group and has a visionary intent to make Jaguar competitive. Jaguar competes well in larger, more luxurious segments, but requires an entry-level player to attract people to brands. This is important as all three German manufacturers are looking to introduce even smaller cars into their product mix, and Mercedes intends to introduce its compact front-wheel drive architecture in the United States by 2012.

Baby jaguar

A new Jaguar model will not appear before 2015, as the automaker is at the beginning of a process that takes about four years to complete. The automaker won’t rely on a makeshift model to fill the gap, preferring to get the job done right the first time. The previous Jaguar X-Type was based on the platform that underpins the Ford Mondeo, the European counterpart to the Ford Fusion. The new baby Jaguar will likely be built from the ground up, featuring a new line of engines and transmissions, incorporating current cabin and safety technologies.

Tata Motors bought Jaguar and Land Rover from Ford Motor Company in June 2008, just as world markets were beginning to collapse. The current Jaguar sells three model lines: its XF midsize sedan, full-size XJ sedan and the XK, its two-door coupe and two-door convertible. All three model lines are new or have been updated in recent years, giving Jaguar one of the most modern fleets among luxury brands.

Together, the Jaguar Land Rover (JLR) automotive group represents the last of the major British automakers, an industry that was once proud and independent and is now dominated by foreign brands and owners.