The CEO of Jaguar Land Rover North America is calling for individual Jaguar and Land Rover dealerships to merge, in hopes that the larger selection of vehicles under one roof will offer an improved customer experience.
“We want to cut the number of rooftops to about 200,” said Andy Goss, CEO of Jaguar Land Rover North America. “At 200, the majority of dealerships would be Jaguar Land Rover.”
The company is not forcing dealers to buy or sell, but is also offering no incentives for them to merge. Chasing the business model of other large companies, Goss says that having both Jaguar and Land Rover under one dealership roof will give customers a wider range of vehicles to choose from. An assortment of small passenger cars all the way up to full size SUVs would be available at one place, a shopping experience that Goss is betting will help boost overall sales.
“Forty-five percent of people who own a Jaguar also own an SUV,” he said. “It is the same customer base. It would be foolish not to try and get those customers. ”
There are roughly 97 stand alone Jaguar or Land Rover dealerships in the U.S. today, and Goss would like at least half of them to merge. The company is focusing this plan in seven key markets: Chicago, San Francisco, Denver, Los Angeles, New Jersey, New York state and Portland, Ore.
No dealership will be forced to merge, but Goss is hoping that the prospect of better sales will convince dealership owners to make the move on their own.