^{E07 with Erwin Bakker :  The New Era of Driving: EVs, Subscriptions & Circular Design}

Exploring Automotive Transformation with Erwin Bakker from Jaguar Land Rover Financial Services

The automotive industry is undergoing remarkable changes, and episode seven of the Auto Futurecast podcast offers a closer look at this shift. Hosted by Chris Kirby and featuring Erwin Bakker, a key figure within Jaguar Land Rover’s Global Financial Services team, this episode explores evolving financial strategies, innovative business models, and the changing nature of vehicle ownership.

If you are keen to understand how the automotive sector is adapting to new consumer demands, cutting-edge technologies, and novel financing structures, this episode deserves your attention. Below is an overview of the key insights shared during this fascinating discussion.

Highlights From the Episode

1. Jaguar Land Rover Financial Services – Using Partnerships for Advantage

Erwin introduces the mission of Jaguar Land Rover Financial Services, explaining its unique position in the market. Unlike many competitors that utilise in-house financing solutions, Jaguar Land Rover collaborates with leading financial institutions globally. By adopting this model, they can:

· Offer tailored financing options for vehicle purchases.

· Maintain liquidity through wholesale financing, empowering their retailer network.

· Introduce adaptable and innovative models that respond to market trends.

2. Rethinking Automotive Financing Beyond Transactions

The conversation transitions into how automotive financial services are evolving. Erwin highlights his role in driving innovation and aligning finance strategies with the business’ core objectives. Key initiatives include:

· Cultivating strong, strategic partnerships that encourage innovation.

· Exploring opportunities like risk-sharing to enhance financing models.

· Ensuring financial services stay ahead of market needs to meet client expectations effectively.

3. Subscription Models and the Shift to “Vehicles as a Service”

An emerging trend is the growing popularity of flexibility over traditional car ownership. The shift towards "vehicles as a service" is enabled by subscription models, which offer adaptability to consumers. Topics discussed include:

· Subscription Services: Jaguar Land Rover’s Pivotal programme provides premium car subscriptions, designed for customers who value convenience and flexibility over ownership.

· Premium Rentals: Tailored for urban drivers or those who use cars occasionally, JLR offers short-term rental possibilities to adapt to varying requirements.

· Global Experiments: Pilots in specific markets, like Germany, continue to inform the expansion of scalable subscription options.

They also consider key challenges, such as managing vehicle depreciation within subscription models, and the strategies being deployed to address these concerns.

4. Electrification and New Business Opportunities

The global pivot to battery-electric vehicles (BEVs) plays a critical role in Jaguar Land Rover’s road ahead. Erwin elaborates on how electrification influences business operations and customer preferences, including these standout developments:

· Shifting Ownership Dynamics: Many customers prefer leasing or subscribing to BEVs due to uncertainties around battery life and technology, prioritising flexibility over outright ownership.

· Extended Vehicle Lifecycles: Erwin cites the example of the Jaguar I-Pace fleet used by Waymo, which demonstrates significant mileage while maintaining high battery health, showcasing the potential for BEVs to deliver strong performance even after prolonged use.

· Repurposing Batteries: Jaguar Land Rover is exploring second-life applications for BEV batteries. With up to 70% usable capacity even after their vehicle lifecycle, these batteries can be repurposed for functions such as energy storage, promoting a circular economy.

5. Long-Term Relationships Built on Exceptional Service

Throughout the episode, the focus remains firmly on enhancing the customer experience beyond the point of purchase. Jaguar Land Rover aims to sustain strong client relationships through the entire lifecycle of vehicle ownership. Examples shared during the discussion include:

· Exclusive experiences, like Land Rover’s renowned off-road adventures, to deepen brand loyalty.

· Delivering seamless after-sales service, incorporating OTA updates to maintain vehicle quality and features.

· Adopting modular vehicle designs to allow upgrades over extended lifecycles, further broadening the appeal of pre-owned vehicles.

Erwin adds an interesting analogy comparing subscription models to dining options, highlighting how flexibility and pricing can cater to varying customer preferences and demographics.

6. Facing the Future of Mobility

The episode concludes with an exploration of how OEMs, dealers, and financial services must adapt to keep pace with changes in customer behaviour and expectations. Key developments include:

· Harnessing data and software for sustained desirability over time.

· Understanding the priorities of younger generations who value access over ownership.

· Aligning internal structures to support sustainability efforts, such as cradle-to-cradle lifecycle models.

Takeaway and Final Thoughts

This episode of the Auto Futurecast podcast provides a detailed look at Jaguar Land Rover’s forward-thinking approach to the auto industry’s transformation. With innovative financing models, customer-centric services, and sustainable electrification strategies, Jaguar Land Rover consistently demonstrates its ability to stay ahead of the curve.

For those in the automotive and mobility industries, this discussion is packed with actionable insights that can help businesses remain competitive in a fast-evolving market.

Don’t miss out on the full conversation. Tune in to the episode now and discover how Jaguar Land Rover is setting new benchmarks in the automotive sector.