MILAN (AP) — The carmaker Stellandis is the fourth largest car maker in the worldIt cut its earnings forecast on Monday, citing investments to turn around its U.S. operations amid a broader industrial slowdown and increased Chinese competition.
Stellandis said this will accelerate efforts To travel around North AmericaIncluding bringing dealer inventory levels to no more than 300,000 vehicles by the end of the year, instead of the first quarter of 2025.
The move comes on the back of a 200,000-vehicle drop in shipments in the second half of this year from a year earlier, more than double the company’s forecast. The company will offer more offers for 2024 and older models.
In its profit warning, Stellandis expected to end the year with a negative cash flow of 5 billion to 10 billion euros ($5.6 billion to 11.2 billion) instead of positive.
The carmaker, formed in 2021 from PSA Peugeot’s merger with Fiat Chrysler Automobiles, cut its operating profit margin guidance to 5.5% to 7.0% instead of double digits.
The maker of struggling Jeep and Ram is looking for something new CEO after Carlos Tavares After a poor first-half financial performance, he was condemned by American dealers and the United Auto Workers union. The company has portrayed the search as a normal leadership succession plan.
Stellantis is also under pressure in Italy, one of its key partners, due to production cuts. Auto workers announced a one-day strike on Oct. 18.
The company said Net profit fell 48% in the first half Compared to the same period last year. While overall new vehicle sales rose 2.4%, first-half sales in the U.S. fell nearly 16%.
2024-09-30 15:17:46