CLASSIC CARS
Born to Perform
James Nicholls, of the Classic Throttle Shop in Sydney, reviews the models that has made Jaguar one of the most distinguished marques in history Photo by Karen Linz/Classic Throttle Shop
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nly a few marques that are still on the road today have the distinguished heritage and rich history of Jaguar. Evolving from the Swallow Sidecar Company founded by William Lyons in 1922, the name “Jaguar” was born in 1935 to reflect the speed and sleek power of the cars that his company was then producing. It was really in the period after World War II, that Jaguar created the cars for which it has become so famous. In 1948 Jaguar launched the XK120 (so called because it could do 120mph), the first of one of the greatest sports car series of all time. Jaguar soon realised that it also had the successful makings of a potentially winning competition car. The XK120C, or C-type as it is more commonly known, was ready just in time for the 1951 Le Mans 24hour race. Car number 20 driven by Peter Walker and Peter Whitehead won on its debut. In 1953, Jaguar introduced the disc brake (developed in conjunction with Dunlop) to the C-type and the world. This meant that the car’s brakes did not ‘fade’ and that the Jaguar could brake much later than the competition – a very important aspect when reducing speed from 150mph on the three-and-a-halfmile straight, Mulsanne. Jaguar finished 1st, 2nd and 4th at Le Mans that year. The XK120 was followed by updates XK140 and XK150 and the C-type by the famous D-type. In 1956 Jaguar became the first manufacturer to win Le Mans and the Monte Carlo Rally in the same year which led to a knighthood for Lyons. If the 1950s was a golden era for Jaguar with five victories at Le Mans by the end of the decade, then the “Swinging ‘60s” was perhaps an even more special decade. Building upon its racing success and popularity amongst Hollywood film stars, such as Robert Mitchum who drove XKs, the world beating XK engine and the cars needed to be updated and Jaguar needed to come up with a sensational new car. This duly arrived in 1961 with the launch of the E-type (or the XKE as it was 12
HK GOLFER・AUG/SEP 2009
HKGOLFERMAGAZINE.COM
LIQUID ASSETS
Shifting Markets
There’s never been a better time to buy, explains Robert Rees
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have a confession to make. I have been involved in the wine business for over 20 years in many different roles, having worked at the following: wineries, restaurants, bars, bottle shops, event managers, investment advisors, auctions and now internet wine sales. Basically, there is not much that I haven’t done in the grape to glass chain. However, like poacher turned gamekeeper, I believe that I can also claim redemption and forgiveness for mistakes made along the way. One of the less auspicious links in the chain was my time in wine investment advising. This rather obscure asset class was thrust into the limelight earlier this decade as spiraling wine prices attracted buyers from all colours and creeds. My extensive experience in matters vinous inevitably drew me towards the roar of this exciting, explosively bullish market. Astounded by the extraordinary leap in the prices of top end wines at auctions and in retail windows, I went about using my experience to guide investors towards what I believed would be the next shooting star in the wine price gain game. The skill was to correctly asses a wine’s pedigree, volume of production, anticipated RPJ or WS rating, recent trading history of past vintages and public appeal of the winemakers, and to thereby select those that in my genuine belief would be most likely to appreciate in value over the next three to five years. Given that the corks would be pulled on more than half of a wine’s total production within three years of it being released also helped to tip the scales in favour of future price appreciation. Thus the usual investment package would include three years storage and insurance in a professional, climate-controlled environment. All very sensible and chugging along nicely until someone asked to cash in the profits. Oops! Whilst at face value there was apparently going to be no problem to achieve that objective, the reality proved to be much more difficult. Once the costs of storage, insurance, freight, taxes, auction and agent fees were taken into account there wasn’t much in the way of profits left, if any at all. The punters were understandably royally annoyed but no-one had really thought the whole process through in detail. It was deceptively complex. Let’s do some basic math. Assume a wine has a retail value of US$130 and you buy it for US$100 with three years storage and insurance included. At the end of those three years you decide to extend storage and insurance for a further three years at approx US$3 per bottle HKGOLFERMAGAZINE.COM
per year with a view to selling it then. Taking into account cost of carry at say three percent per annum your bottle has cost you approx US$127 (yes I know, excluding compounding effect: I am trying to keep this simple). In the meantime you are pleasantly informed that the wine has been gleefully quaffed the world over and now has a retail value of US$200. It is considered rare and difficult to procure. Not bad, eh? Show me the money! You set out to sell your prized bottle. Your local retailer stares blankly back at you and surreptitiously reaches for the shotgun beneath the counter when you offer it to him for what you think is a bargain at US$175. His margin is a minimum of 40% otherwise he cannot cover costs. He offers you US$150 as you have been a good client for many years. Miffed, you decide to list the wine for auction, having seen that it has just traded at US$180. Problem is that the auctioneer is charging 10-20 percent fees. Worse still, your wine is actually being stored in London and that price is only available in Hong Kong’s red hot wine market, fuelled into frenzy by the Chinese miracle economy and the infinite wisdom of the local authorities to abolish customs tax. How do I move this stuff to Hong Kong? Answer: freight plus insurance plus another round of storage until it sells. Hmmm. Best sell it in London then. The London auction price is US$160, but you have to first take the wine out of bonded storage and pay 17.5 percent VAT to sell it domestically. Or you can sell it in bond for $140 but that requires finding a buyer who uses your storage facility, otherwise there are extra freight costs. Getting confused? All a bit harder than you first thought? Let’s not even discuss what it takes to get the wine to market in the USA. Thousands of investors are now facing this dilemma. Reputable wine investment houses are proactively working very hard to get the best exits for their clients, but supply is far outweighing supply at the moment, and I believe it may get worse. Consequently, volumes on offer at auction have increased dramatically but reserves have been unrealistically high, resulting in very low turnover and mounting frustration amongst investors. This is undeniably a buyer’s market. The best in a decade. Professionally cellared and carefully matured wines are now often being offered at prices below current vintage releases of the same wine. This is causing major indigestion for some producers and distributors who are trying to sell new stock into a market that is now awash with older, highly rated wines that are actually cheaper than the new offerings. As always, markets adapt to new conditions. Traditional auction houses are struggling and are reviewing their commissions. Cue the plug: we at Wine Exchange Asia have reacted by creating a live market for wines in Asia. SPECIAL READER OFFER To reflect the reality that sellers vastly outnumber buyers, Kalleske Pirathon Shiraz 2007: Winner of the London we have created a market International Wine Challenge where no buyer’s premium is 2009 – Best Australian Shiraz. applicable and where buyers US$440 per case including and sellers can adjust prices delivery. until transactions occur. If you To place an order, or if you are at all interested in buying have any other enquiries, please quality wines at unrepeatable contact Robert at wine@ prices, get involved at www. hkgolfermagazine.com wineexchangeasia.com. HK GOLFER・AUG/SEP 2009
Illustration by Christine Berrie
known in the US). This is a car which perfectly captured the spirit of the time. Perhaps the most famous sportscar (if not car) of all time, this automotive icon was built for the next 13 years. It is a car that is still beautiful and yet eminently useable today, and whilst the Series III is perhaps the most practical to drive, the Series I is still the pursist’s choice in either coupe or roadster form. Another very practical and useable, yet stylish and iconic Jaguar from t h is period is t he 3.8 Ma rk 2 sa lo on. W it h an enlarged 3.8litre XK engine producing around 220hp, the Mark 2 was favoured by crooks and villains as a getaway car, and subsequently utilized by the British Police to chase them. Fast and powerful, this was a very sophisticated vehicle with a luxurious and elegant interior filled with leather and wood veneer. Fitted with air-conditioning, a Jaguar Mk 2 is a car that makes a very good classic that can be used everyday in all conditions, including heavy traffic. Perhaps the finest Jaguar saloon car – the XJ6 – was introduced in 1968. This was the last masterpiece of Sir William, who retired in 1972. The XJ6 met with immediate public approval, with its distinctive looks and well-appointed refinement. Again an excellent useable classic, it is also available in the larger engine V12 version. In 1975 the XJ-S was launched. The sports car of the XJ series, the XJ-S replaced the incredible E-type. Like the E, available as a coupe or convertible, the XJ-S is a wonderful sports tourer and another classic that is well suited to the rigours of modern motoring. Jaguar has a great racing pedigree and continues to make some lovely cars to this day. The Jaguar name (along with its sister, Daimler) epitomises grace and style and is synonymous with classic cars of the best kind. There is a model for everyone and every budget. Whether a sporting saloon like the Mk 2 or XJ, a sports car like the XK or an iconic E-type, or perhaps the legendary C or D-type, Jaguar truly does provide, “a unique blend of style, luxury and performance.”
A rare breed: the Jag XK150
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