Jaguar Land Rover to reduce the number of dealerships in the U.S.

Article by Christian Andrei, on July 17, 2012

Within three years, the number of Jaguar Land Rover’s dealerships in the U.S. will be lower by around 20%. To accomplish this, the two brands will be consolidated into single locations. Andy Goss, CEO of Jaguar Land Rover North America, said that they want to limit the number of dealerships to around 200. He said that most of the dealerships would then be for Jaguar Land Rover.

Goss said that the company, which is owned by India-based Tata Motors, won’t compel dealers to buy or sell. It also won’t be giving financial incentives. Goss added that the dealers are being encouraged to sit with them and get to a solution.

Goss said that this plan seems reasonable, according to Autonews. There are currently 243 Jaguar or Land Rover dealerships in the country. He said he hopes that about half of the 97 stand-alone Jaguar or Land Rover dealerships will merge. He said that it’s sensible for the two brands to be housed in the same building. He is focused on consolidating seven markets where the two brands are strong.

These include Chicago, San Francisco, Denver, Los Angeles, New Jersey, New York state and Portland, Ore. He said that the retailers in these markets have already received notices. Goss said that he had been to these seven markets and had talked with targeted dealers.

He said that to succeed in the luxury car market, the key is to study the actions of BMW and Mercedes-Benz. Goss said that BMW and Mercedes stores presently offer potential consumers with a variety of passenger cars and SUVs under one roof, Goss said, while stand-alone Jaguar or Land Rover stores are unable to do so.

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