Cheapest Jags get kicked to the curb

USA TODAY, March, 2005 by James R. Healey

NEW YORK -- Money-losing Jaguar is killing the cheapest versions of its entry-level X-Type sedan and adding more-expensive X-Types and a $115,000, high-power XJ sedan to regain an image of exclusivity and the profit it hopes that brings.

Jag's move shows that European luxury brands can go too far downscale, or use the wrong products when they do.

BMW moved down-market in the 1990s, but by 1999 had dumped the very cheapest, four-cylinder versions of its 3 Series entry cars because they conflicted with the brand's high-performance image.

Mercedes-Benz sells a relatively low-price, lower-power C-Class lineup, starting with the $27,000, four-cylinder C230. C-Class is Mercedes-Benz's biggest seller in the USA, but C-Class sales are down 29% the first two months...