Jaguar Land Rover - comment

Q1 numbers were slightly disappointing but broadly irrelevant in the credit analysis of Jaguar LandRover. The chip shortages, Covid-related lockdowns and impact of inflation are all well-flagged issues for all auto manufacturers and JLR is no different. But with a record-breaking order book, and strong traction on new models the upcoming quarters is all about the delivery of the promise of significant positive EBIT margins (5%) and £1bn positive Free Cashflow. We will update our model once JLR publishes its financial statements.