JLR's profit recovery plan disappoints investors despite US growth push

JLR’s profit recovery plan disappointed investors even as it targets U.S. growth to counter weakness in China. Jaguar Land Rover said it expects a 4% profit margin for the year, after its margin fell to 0.7% last fiscal year, far below near double-digit levels earlier. The outlook triggered a selloff in Tata Motors, JLR’s Indian parent, with shares down as much as 10%; JLR accounts for about 80% of Tata’s revenues. Reuters cited headwinds including U.S. trade tariffs, a cyberattack that halted production, and cost and supply-chain disruptions tied to the Iran war. JLR also reiterated cost cuts of $2.3 billion over two years and aims to reduce breakeven volumes to 300,000 units from 425,000. The company kept an £18 billion ($24.12 billion) investment plan from fiscal 2024, while noting Stellantis would help expand in North America.