AIMS: Jaguar XF 2.2 diesel undercuts Germans

Jaguar has gone public with aggressive pricing for the new entry-level model to its XF range. Announced to coincide with the arrival of 2012 XF
range at the Australian International Motor Show in Melbourne, the XF Luxury 2.2 turbodiesel will go on sale at $78,900.

Undercutting its German rivals, specifically the $83,300 BMW 520d and $82,200 Mercedes-Benz E220 CDI, the new 2.2-litre diesel Jag is expected to account for as much as a third of XF sales in Australia says Jaguar Australia's Brand Manager Kevin Goult.

Talking to motoring.com.au during the car's international launch in Germany late last week, Goult says it's full steam ahead for the brand.

"The 2.2 diesel XF is available for order [in Australia] now. We will see the cars from mid-September with our first launch stock and by October we will be in full supply of vehicles," stated Goult.

"We're seen as an important market to the business. Australia is well recognised as a market that is in growth, and there's a high demand for our product here, which improves our ability to get cars here quickly."

Goult said that he expected the new four-cylinder turbodiesel model would boost sales of the XF in Australia, with the sub 80K price point an important factor.

"Somebody who has bought a Merc or BMW or Audi who has had it for two or three years now has an alternative with the XF diesel at this price point. They now have an opportunity to buy a premium British brand."

Sporting a new design that borrows several styling cues from the range-topping Jaguar XJ limousine, the new entry-level XF is powered by a 2.2-litre turbodiesel engine that outputs 140kW/450Nm, which is sent to the rear wheels via an eight-speed ZF automatic gearbox.

An 8.5 second 0-100km/h split earmarks the car as a relatively rapid leaper, though its stop-start engine system and a low fuel consumption figure of 5.4L/100km should deliver more than 1000km between refuelling stops if driven conservatively.

While the new Jaguar XF oiler is more efficient than the Benz E220 CDI (5.9L/100km), it's a couple of tenths behind the BMW's 5.2L/100km.

Due to its fuel consumption, the 2012 Jaguar XF 2.2 diesel avoids a chunk of the luxury car tax. Goult said that roughly $1200 of the car's 78,900 price is the LCT.

"We're answering [the LCT] question with our fuel consumption. On an RRP price, we've almost got price parity with UK cars -- which is possible via clever specification and low fuel consumption -- reducing the amount of luxury car tax that customers pay."

Jaguar has introduced a new trim level for the Jaguar XF 2.2 diesel called Luxury and this includes standard kit such as alcantara and bond grain leather seats (with electric adjustment for driver and front passenger), a 7-inch colour touch-screen infotainment display, Bluetooth phone connectivity and audio streaming, a 400W 10-speaker audio system, automatic dual zone climate control with air filtration, cruise control, and an electrically adjustable three-spoke softgrain leather steering wheel with gear shift paddles and remote controls for cruise, audio and phone.

Electric windows, mirrors, keyless start, an electric park brake, plus rain-sensing windscreen wipers and light-sensing HID xenon headlights are also standard, as is an interior mood lighting setup with 'Phosphor Blue Halo Illumination'.

External features fitted as standard include LED brake lights at the rear and LED daytime running light at the front, rear parking sensors and 17-inch alloy wheels.

Goult expects the newly positioned XF diesel model will bring new customers to the Jaguar fold but was also quick to point out the importance of existing customers, hence the new Jaguar XF 2.2 diesel 'Luxury' specification which was tailored to have as little impact as possible on the residual values of 2009, 2010 and 2011 XF vehicles.

"The new 2.2 priced at under $80K will attract a younger customer to Jaguar, but we know that we have to keep existing Jaguar owners happy. We've got to remember that whilst we're going for a new customer, we must continue to look after our existing customers.

"We're protecting our existing customer. There's nothing worse than doing a new model year and boning your existing customer. The old XF luxury is now the equivalent of an XF premium luxury. So what we've done is reset the scales.

"The whole idea here is that we don't want to burn existing customers. We don't want to sell a new car, and the older MY 11 car then dramatically drops in value. We don't want to do that. What we do want is to have the appeal for existing customers, and part of doing that is to make sure that when they come to trade in their car they haven't had a massive hit in residual value," Goult said.