Jaguar Graveyard: The I-Pace Is Being Destroyed

In 2019, the Jaguar I-Pace was hailed as the World Car of the Year, representing a promise of innovation in the electric vehicle market. However, significant problems with the batteries led Jaguar to take the drastic decision to buy back and destroy thousands of units of this model.

What happened

Sales of the Jaguar I-Pace never met initial expectations. In addition, the model faced several recalls, reliability issues and even fire incidents. The main problem was in the batteries provided by LG, which were prone to overheating, increasing the risk of fire. Attempts to correct this through software updates were unsuccessful.

By the end of 2024, Jaguar announced it would buy back approximately 2,800 units in the United States. Similar programs have been implemented in other countries, such as the United Kingdom. Images of a scrapyard in the United Kingdom showing several Jaguar I-Pace cars stacked together went viral on social media, symbolizing a melancholy end for the model.

Problem analysis

The defective batteries were manufactured by LG Chem in 2017. Similar problems have occurred with other electric vehicles, such as the Chevrolet Bolt EV, leading to recalls and significant financial compensation. The affected I-Pace models were produced between January 2018 and March 2019 by Magna Steyr, in Austria.

Financial and image impact

With a starting price of US$72,500 (approximately R$360,000), the I-Pace has had its reputation damaged. Buying back and destroying the affected units represents a significant cost to Jaguar, as well as damaging consumer confidence in the brand.

Jaguar's Response

In markets such as Portugal, Jaguar has chosen to replace the batteries of affected models or offer to buy back the vehicles, allowing customers to use the value towards the purchase of a new vehicle from the brand.

Conclusion

The Jaguar I-Pace situation highlights the challenges automakers face in transitioning to electric vehicles. Reliability issues can have significant impacts on a company’s reputation and finances. Jaguar, which plans to become an all-electric brand by the end of the decade, will need to address these challenges effectively to ensure its future success.