[ad_1]
(Reuters) – Stellantis lowered its annual forecast on Monday, citing deteriorating industry trends, higher costs of overhauling its U.S. business and Chinese competition for electric vehicles.
On the Paris Stock Exchange, around 08:32 GMT, the action dropped 14.03%, compared to a loss of 1.24% for the CAC 40 at the same time.
Within the sector, Volkswagen lost 2.45%, Mercedes 1.85%, BMW 1.92% and Aston Martin 26.14%.
The car manufacturer indicates in a press release that it must “take into account the decision to significantly amplify the actions undertaken to correct performance problems in North America”.
“The actions include a drop in network sales in North America of more than 200,000 vehicles in the second half of 2024 (compared to 100,000 according to previous forecasts) compared to the same period of the previous year,” specifies Stellantis.
The group now forecasts a current operating margin between 5.5% and 7.0% for the 2024 financial year, down from the “double-digit” current operating margin previously targeted by Stellantis.
Industrial free cash flow is expected between -5 billion and -10 billion euros, compared to the “positive” industrial free cash flow targeted previously, adds the press release.
The owner of the Fiat, Citroën, Peugeot, Jeep and even Chrysler brands has brought forward its objective of not exceeding stocks of 330,000 units at dealerships to the end of 2024.
To achieve this, Stellantis will reduce its deliveries to North America in the second half of the year by more than 200,000 units compared to the previous year, double the previous instructions. The auto giant will offer incentives for vehicles from 2024 or earlier, and invest to improve productivity.
Stellantis’ warning comes as Volkswagen, Mercedes, BMW and Aston Martin also cut their annual outlooks, increasing pressure on the European Union which must finalize plans on tariffs for Chinese electric vehicles.
“The deterioration of the global automotive context is marked by a 2024 market forecast down compared to the start of the year, even though competition has intensified due to the increase in supply and increased competition. increased Chinese demand,” says Stellantis.
Earlier this year, U.S. shareholders sued the company, accusing the company of defrauding them by hiding rising inventories and other weaknesses before reporting disappointing results that caused its stock price to plummet. .
The group also announced in August its intention to lay off up to 2,450 workers at its assembly plant near Detroit, due to the cessation of production of its Ram 1500 Classic truck.
(Reporting by Makini Brice, Tassilo Hummel and Valentina Za; French version Leo Marchandon and Florence Loève, editing by Augustin Turpin and Kate Entringer)
Copyright © 2024 Thomson Reuters
Are you following this action?
Receive all the information on STELLANTIS in real time:
[ad_2]
Source link -84