Jaguar Land Rover, when the financial crisis swept through the planet in 2009, looked as though it could topple over at any second. Vast amounts of stock remained unsold in the United States, nobody was going into European dealerships and the resultant, immediate downsizing required for the company to survive was sharp and painful.
Yet now, just five years on, it’s as though none of that happened. Riding the crest of a wave that seems to have no end in sight, the company is in the rudest imaginable health and cannot, no matter how hard it tries, keep up with worldwide demand for its products.
Part of this turnaround is attributable to success in emerging markets like China and South America, but there’s no denying that the vehicles rolling off its various production lines are the best that it’s ever made. Whether you’re talking about the new Jaguar F-Type or the Range Rover Evoque, these are cars that have woken up and shaken a newer, younger section of the marketplace. No longer do you need to be a retired dentist to drive a Jaguar, or a pompous landed gentry toff to drive a Range Rover.
It’s a hugely exciting time to be a key player in the success of Jaguar Land Rover right now, and Bruce Robertson knows this. He’s the new managing director for the company in the Mena region, filling the rather large shoes left for him by Robin Colgan, who has relocated back to the United Kingdom. Robertson has been with the company for 19 years, starting out in 1995 as a PR manager in his home country of South Africa, before traversing the globe as he moved onward and upward through the company, including a lengthy stint in the UK, where he was the sales director for Land Rover. So it’s safe to say that he’s experienced.
But the company that he’s spent so long working for isn’t completely out of the woods – there’s much work to be done in this region to improve sales for the Jaguar and Land Rover brands, not to mention the after-sales care and service standards. Jaguar sales, in particular, are nowhere near what they should be (it sells roughly two-thirds what Porsche is currently doing) and that needs to be addressed urgently if the brand is to succeed on its own merits, rather than being propped up by its more utilitarian cousin.
“It’s not our plan to become a mass manufacturer,” he says, “and it never will be. We appeal to a limited sector in the marketplace; we sold roughly 440,000 cars last year [the vast majority Land Rovers] – we’re not aiming to sell a million a year.”
The next big launch for Jaguar will be the XE in 2015; a 3-Series rival that promises to wipe the horrible X-Type from our memories – but, when you look at the rampant success of Porsche, surely an SUV is the way to go for increased sales, particularly in China and here in the UAE?
“The US, UK and parts of Europe are areas where there’s a huge amount of downsizing taking place,” says Robertson, “and we need to ensure survivability in these countries. Look at the CO2 emissions issue, the taxation – we need to keep Jaguar relevant to those markets first. There is a large opportunity here and in China in the XE segment, too.”
Robertson admits that there’s work to do in making the brands more acceptable and appealing to those with requirements for luxury cars, but says that growth will be manageable and progressive, rather than overnight. And, yes, he agrees that a Jaguar SUV (we all know it’s coming) will massively help sales. Last year, we got to experience the concept C-X17 and immediately saw the enormous potential of it to send Jaguar’s sales skywards. It can’t come soon enough, but, talking to Robertson, it’s obvious that there’s a plan.
New production lines are required (current demand for Land Rovers has resulted in lengthy lead times, and this will not do, he says) and customer service is still an issue that needs sorting – but they’re getting there. The cars are uniformly excellent these days – vibrant, exciting, capable and, at long last, extremely well made – and Jaguar’s inevitable rise will be something that’s both well deserved and, five short years ago, entirely unthinkable.
khackett@thenational.ae
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
THE BIO
Age: 30
Favourite book: The Power of Habit
Favourite quote: "The world is full of good people, if you cannot find one, be one"
Favourite exercise: The snatch
Favourite colour: Blue
Killing of Qassem Suleimani
The biog
Age: 32
Qualifications: Diploma in engineering from TSI Technical Institute, bachelor’s degree in accounting from Dubai’s Al Ghurair University, master’s degree in human resources from Abu Dhabi University, currently third years PHD in strategy of human resources.
Favourite mountain range: The Himalayas
Favourite experience: Two months trekking in Alaska
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The biog
Name: Capt Shadia Khasif
Position: Head of the Criminal Registration Department at Hatta police
Family: Five sons and three daughters
The first female investigator in Hatta.
Role Model: Father
She believes that there is a solution to every problem
SHAITTAN
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NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
SPECS
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Company%20profile
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”