Jaguar drops X-Type from 2009 U.S. lineup

Jaguar will pull the entry-level X-Type from the U.S. market next March when the sporty new XF sedan goes on sale. The automaker had been expected to keep the X-Type in the U.S. market until 2010.

Jaguar's most affordable model has always struggled in the U.S., and after peaking with sales of around 5000 cars in its launch year in 2003, sales have tailed off to below half that level, despite a wagon being added to the range.

U.S.-spec production will cease in December when Jaguar's factory switches over to a new facelifted 2009 model X-Type. That model will never make it to the U.S.; cars sold in the U.S. through March will be built to today's specifications prior to the model changeover.

Jaguar blames increasingly tough competition in the compact premium segment and the disadvantageous dollar to British pound ratio, which has affected profitability.

"Over the past 18 months Jaguar has been conducting a strategic review of its positioning in the premium luxury market," said a Jaguar spokesman, "and there were a number of unique circumstances in the North American market."

The new XF is a bigger and more expensive car than the X-Type. Jaguar expects sales of the rakish-looking sedan to compensate for the loss of the smaller Jag.

U.S. specifications and prices for the XF will be announced at the Los Angeles show in November, but the rumor is that XF volume is slated at around 5000 cars a year, similar to the combined volume of the X-Type and the bigger S-Type, the car that the XF directly replaces.

Jaguar's U.S. line-up of XFs is expected to consist solely of two V8 models--the lesser V6 not crossing the pond.

original: http://autoweek.com/