By 1966, trade unions and the effects it had on wages took a toll on the British automotive industry and the now Sir William Lyons decided that in order for his company to survive, he would merged with the with the British Motor Corporation. Lyons retained his title of chairman and chief executive of Jaguar Cars, Ltd. up until his retirement in 1972, even through BMC's merger with British Leyland in 1968.
Jaguar and other brands barely survived into the 1980's under British Leyland due to labor strikes, supplier problems and a lack of quality control. By 1985, the year Sir William Lyons passed away, Jaguar Cars, Ltd was spun off and became an independent company again, even though their XJ-S sports coupes and XJ salons began to sell in significantly larger quantities than in the previous 10 years.
It's just that the reputation of the E-Type set standards that the XJs just never managed to live up to. And only having a gas guzzling V12 in the middle of multiple oil crises didn't help much either. But in the end, it was the perceived lack of build quality that really destroyed the company's aspirations and reputation. Problems with complicated and unreliable cooling and electrical systems in the XJ models began to drive away customers.
In 1990 Ford Motor Company acquired Jaguar for $2.6 billion and worked on improving the XJ models, and overhauled the assembly line in Coventry. But in addition, Jaguar really needed Lyon's unique sense of design and style and the subtle way he included a little of his character into every car he built. Sir William once said that a car "was the closest thing we can create to something that is alive", a sentiment that has stood the test of time.
Indian car maker Tata Motors purchased Jaguar in 2008 and their new XK and XF models seem to capture a Jag's sleek feline qualities along with a mix of quaint British charm and strong performance. But they haven't reached the bar the E-Type set so high almost fifty years ago.
