Jaguar on the brink of collapse – this stark description of the British manufacturer’s situation is more accurate than any marketing slogan. Following the complete shift to electric mobility, the company is facing a shortage of vehicles, sales, and trust, while the Jaguar crisis is visibly escalating. The announced electric relaunch was intended to rejuvenate the brand, but instead, the rebranding accelerated Jaguar’s economic decline. The slump in sales leaves no room for sugarcoating, even though the company’s management clung to its original plans for a long time. (blick: 15.12.25)
Jaguar on the brink of collapse: The risky break with the past
The strategic shift deliberately aimed for maximum distance from its own history. Jaguar said goodbye to combustion engines and presented itself as an electric luxury brand with a fashionable edge. An advertising clip without cars and the Type 00 prototype in vibrant colors garnered attention, but also rejection. The then design chief, Gerry McGovern, wanted a clean break because the electric relaunch was intended as a new beginning and was meant to deliberately leave old target groups behind.
But this repositioning came with a dangerous decision. Production of almost all previous models was halted until no new production vehicle was available. This triggered a sales slump that further exacerbated the Jaguar crisis, as dealers could no longer offer any products. A change in image thus became an operational blockage.
Production Stop and Sales Slump Without a Safety Net
The market effect was immediate. In Europe, sales temporarily plummeted by more than 97 percent, an exceptional figure even in the premium segment. Jaguar lost visibility while competitors expanded their model ranges. The planned launch of the new electric car was postponed again, turning the electric relaunch into a test of patience. From the perspective of many observers, the Jaguar rebranding thus appeared increasingly detached from reality.
Without vehicles, there is no market presence, and without a market presence, even an iconic brand loses relevance. The ongoing sales slump also reinforced doubts about the pricing strategy in the planned six-figure segment.
External Shocks Intensify the Jaguar Crisis
External pressures compounded the internal weaknesses. New US tariffs hit the automotive industry hard, and a cyberattack crippled Jaguar Land Rover’s factories for weeks. The British government provided £1.5 billion to stabilize the company. However, this aid could not resolve Jaguar’s structural crisis, but merely buy time.
At the same time, the political climate in the US shifted. The promotion of electric mobility lost priority, making the most important target market for the electric vehicle relaunch uncertain. Demand also remained sluggish in China, which is why Jaguar’s rebranding gained little traction internationally.
Power Shift and Loss of Trust in Management
The crisis had personnel consequences. CEO Adrian Mardell lost his position, underscoring the seriousness of the situation. Reports of a possible departure of design chief Gerry McGovern caused further unrest, although the company stated that “we have terminated Gerry McGovern’s employment” was not true. This contradictory communication deepened the loss of trust because clear lines of responsibility were lacking.
The end for Jaguar is evident here as well, since weak leadership is particularly destructive during periods of upheaval. Without credible decision-makers, even a long-established manufacturer loses its bearings.
Survival Thanks to the Group – Not Thanks to Strategy
Analysts now see Jaguar as a liability within Jaguar Land Rover. Land Rover generates stable profits, while Jaguar has been reporting declining figures for years. The Jaguar crisis existed even before the current change of course, but the radical electric relaunch accelerated it. The company is now presenting the prototype in more conservative colors, which is seen as a tacit admission of the false start.
Whether this correction will be sufficient remains to be seen. The sales slump continues, and the rebranding appears to be damaged. Unless a rapid operational turnaround is achieved, Jaguar’s fate is sealed.