Jaguar I-Pace

[Kandiru]

In China the leadership has made alternate energy a high priority, hence the EV boom in that country, with SAIC, FAW, Dongfeng, Chana, BAIC, GAC, Chery, BYD, and Geely being just some of the players. People are getting fed up with pollution.

Orders from up top in China are much easier to implement, it being a commie dictatorship with very indoctrinated citizenship.

 

[miimura]

Jaguar releases cheaper, less powerful I-Pace electric SUV - Electrek

Jaguar has basically software locked the iPace to lower powertrain output so that they can offer a cheaper version. I don't see any cost reduction, so it will inherently have lower margin. Therefore, I don't see this as a higher volume model. Almost certain to be offered in the UK and EU only.

 

[MP3Mike]

Jaguar releases cheaper, less powerful I-Pace electric SUV - Electrek

Jaguar has basically software locked the iPace to lower powertrain output so that they can offer a cheaper version. I don't see any cost reduction, so it will inherently have lower margin. Therefore, I don't see this as a higher volume model. Almost certain to be offered in the UK and EU only.

Yeah, I wondered if that was more to prevent warranty failures, and that is where the cost reduction comes from.

 

[Saghost]

Maybe it’s a face saving way to adjust the MSRP to reflect market conditions?

 

[miimura]

Maybe it’s a face saving way to adjust the MSRP to reflect market conditions?

In the States, Audi is more up-front with this issue. The MSRPs for basically the same e-Tron cars will be up to $9,000 less than the same trim for the 2021 compared to the 2020 model year. EPA range is also increased by 18 miles, most likely from opening up the usable energy from the pack. I get the impression Audi is basically moving the price reduction already in effect from the factory to dealer incentives to the MSRP.

Audi e-tron 2021 electric SUV gets $9,000 price cut and 18 more miles of range - Electrek

 

[FlatSix911]

In the States, Audi is more up-front with this issue. The MSRPs for basically the same e-Tron cars will be up to $9,000 less than the same trim for the 2021 compared to the 2020 model year. EPA range is also increased by 18 miles, most likely from opening up the usable energy from the pack. I get the impression Audi is basically moving the price reduction already in effect from the factory to dealer incentives to the MSRP.

Audi e-tron 2021 electric SUV gets $9,000 price cut and 18 more miles of range - Electrek

Jaguar releases cheaper, less powerful I-Pace electric SUV - Electrek

Jaguar has basically software locked the iPace to lower powertrain output so that they can offer a cheaper version. I don't see any cost reduction, so it will inherently have lower margin. Therefore, I don't see this as a higher volume model. Almost certain to be offered in the UK and EU only.

Both cases are perfect examples of the Invisible hand at work in the free market economy.

Invisible hand - Wikipedia

 

[alloverx]

Yes when you are the underdog you need to have something to force customers to consider your product.
-you've got to break through the noise.

Price is one option but obviously its a tricky equation with
-costs (of production)
-various government credits
-PR/Marketing
-Brand image
-cost of customer acquisition

If I was Jaguar, I would have a Black Friday sale/lottery of basic models along the lines of "40 for $40K".
-no choice in paint color or wheels or any other options.
i.e. Deposit of $4,000; 40 winners are drawn at random via a real-time webcast. You have 40 days to claim your item.
Naturally non-winners would get a full refund. Perhaps give them an option of $4,040 off any Jaguar.

 

[miimura]

Both cases are perfect examples of the Invisible hand at work in the free market economy.

Invisible hand - Wikipedia

The hand is not so invisible. I actually don't think this is free market forces at all. It is regulatory compliance and enticement for customers to help the manufacturers reach their compliance targets. The e-Tron is carrying all the ZEV regulatory burden for VW/Audi America since the e-Golf does not have any cars designated as 2020 model year. They are clearing out the 2019 e-Golf cars now. Certainly, the iPace EV320 will be made only in sufficient quantity for Jag to hit their European CO2 target.

 

[daktari]

Nah, they bumped the price for the EV400 10-15% a few months ago, now comes EV320 at the same price previously used for the EV400. Smart move to increase profit.

 

[FlatSix911]

The hand is not so invisible. I actually don't think this is free market forces at all. It is regulatory compliance and enticement for customers to help the manufacturers reach their compliance targets. The e-Tron is carrying all the ZEV regulatory burden for VW/Audi America since the e-Golf does not have any cars designated as 2020 model year. They are clearing out the 2019 e-Golf cars now. Certainly, the iPace EV320 will be made only in sufficient quantity for Jag to hit their European CO2 target.

Simple really... oversupply and limited demand for the Audi and Jag lead to price cuts of $9-10K per unit.

 

[miimura]

Simple really... oversupply and limited demand for the Audi and Jag lead to price cuts of $9-10K per unit.

Right. The oversupply is driven by the regulatory quotas they need to hit. On this side of the pond, the American division calculates how many they need to sell, they order them from the factory, then do what they have to in order to "move the metal". If the product is not appealing enough compared to alternatives in the marketplace, they have little choice but to "put cash on the hood".