A few thoughts:
- You would be surprised at how manufactures shave cost to increase margins. The HD package was a significant item on the BOM and it also increased vehicle weight which feeds into the CAFE rating.
- Agreed that many LR customers don't need HD so in consideration of higher manufacturing cost and the need to increase margins, slowly begin to reduce the mix of HD in the overall production.
- The LR4 was coming to the end of its production run so all parts need to be carefully managed such that, ideally, when the final one rolls off the line inventory is near zero. I would think the LR4 HD components would not work on the LR5.
- The LR5 is further down the "sport" path and likely will need even fewer HD "utility". It is beginning to look like your soccer mom van with AWD. Marketing will position traction control as "good as HD" but many will never use it and therefore not push back on that false position. CAFE requirements are increasing so save every pound of weight.
- Land Rover design director Gerry McGovern is watering down the brand and will be gone in a few years. His model is the Evoque. That was a fashion statement, not a vehicle in the spirit of LR. I've driven an Evoque and think it is a cramped low end vehicle. LR did need modernizing and sales have increased as more models are available but they have sacrificed much of their heritage. Will the Defender recover that heritage? TBD
