Selling your classic car? It's FREE to list your car on Honest John Classics | No thanks

Can Mike Dale fix Jaguar - again?

5 November 1990

FORTUNE
By MARK M. COLODNY

These must be humbling times for the legendary automaker that Ford Motor bought last year for $2.5 billion. The latest J.D. Power quality poll of owners ranks Jaguar No. 28 of the 29 cars surveyed. Only Korea's Hyundai -- which, at prices that start at $6,300, costs some $33,000 less -- did worse.

Complaints about the reliability of Jaguars seem to be part of owning one. Earlier this year, the company recalled all the 1988 and 1989 models it has sold in the U.S. Leaking brake fluid was an engine fire hazard. By the time of the recall, sales, which had picked up from 3,000 cars a year in 1980 to 24,000 in 1986, had already dropped to 19,000.

All of these problems have a familiar ring to British-born Michael Dale, 55, the airplane collector and weekend flier who is president of Jaguar Cars, the U.S. subsidiary. Dale was head of Jaguar's American sales when the company was British owned, and launched the previous turnaround strategy. Among other things, he bucked conventional automaker thought, buying out nearly 50% of the 250 dealers, going after those who flubbed repairs.

That cut down the number of times a customer had to make repeat visits to the dealer with the same problem. Jag and other importers face not only a weak dollar but also the challenge from Toyota's Lexus. Dale hopes that Ford can help Jaguar make more reliable cars in its British plant. But he's not counting on a bottomless wallet. ''They're not the International Red Cross,'' he says. For his part, Dale is putting his salespeople and mechanics through extra training and trying to hold down prices. Does Dale think this will be enough?

Says he: ''Compared with the other Europeans, we're doing well. It would be easy to read into this that Jaguar is in a reasonably safe position. But I don't believe anyone is safe.''

More news from the archive

Wed, 20 Jun 1990
THE GUARDIAN About 4,300 Jaguar workers will be laid off from today because of an unofficial stoppage by 300 night staff at the Castle...
Thu, 21 Jun 1990
NEW YORK TIMES Jaguar P.L.C., Coventry, England, the auto maker, said it laid off 4,200 workers, more than half its total manufacturing...
Fri, 29 Jun 1990
NEW YORK TIMES Britain said today that it had accepted a judgment by the European Community's Executive Commission against the Government's...
Thu, 26 Jul 1990
British Aerospace P.L.C. said it would appeal a European Commission order that it repay illegal Government subsidies it received when...
Mon, 29 Oct 1990
NEW YORK TIMES The new leaders of Jaguar Cars Ltd. are hoping that their first major victories are at hand in the battle to turn the...
Fri, 09 Nov 1990
NEW YORK TIMES Employees of Jaguar and the Rover Group have voted to accept new contracts that include double-digit pay increases...
Thu, 07 Feb 1991
JAGUAR AXES 1,000 JOBS AS UK VEHICLE MARKET SLUMP CONTINUES TO DEEPEN By Simon Beavis, Keith Harper, and Celia Weston Jaguar, the...
Thu, 07 Feb 1991
NEW YORK TIMES COMPANY NEWS; Jaguar Is Planning To Cut Production AP Published: Thursday, February 7, 1991 The Ford Motor Company's...
Tue, 12 Mar 1991
Jaguar P.L.C ., London, said its sales would fall again this year after dropping by 10 percent, to 42,000 cars, in 1990.
Wed, 18 Sep 1991
NEW YORK TIMES The Rover Group, the British car maker, announced today that it planned to eliminate distinctions between its 35,000...
 

Compare classic car insurance quotes and buy online. A friendly service offering access to a range of policies and benefits.

Get a quote