Auto stocks such as Ford Motor and General Motors crashed by three per cent and nearly four per cent, respectively, on Monday, September 30, after Stellantis NV slashed its 2024 forecast. The world’s fourth largest carmaker, Stellantis NV, has revised its 2024 financial forecast as it is focusing on US operations amid an industry slump and rising competition from China.
“The company has accelerated its planned normalization of inventory levels in the US, targeting no more than 330,000 units of dealer inventory by year-end 2024, from a prior timing objective of the first quarter of 2025,” the carmaker said in a statement.
“Actions include North American shipment declines of more than 200,000 vehicles in the second half of 2024 (up from 100,000 prior guidance), compared to the prior year period, increased incentives on 2024 and older model year vehicles, and productivity improvement initiatives that encompass both cost and capacity adjustments.” it added.
The carmaker expected to end the year with a negative cash flow of 5 billion euros to 10 billion euros, from the positive cashflows expected earlier.
About Stellantis NV
The company was founded after merging PSA Peugeot with Fiat Chrysler Automobiles in 2021.
In related events, the carmaker is searching for a new CEO to succeed Carlos Taveres, whose term ends in early 2026. Tavares is facing the heat of US dealers and the United Auto Workers union due to disappointing first-half financial performance, reported AP.
Stellantis net profits were down 48% in the first half of the year compared with the same period the previous year.
The company is also under pressure in Italy because of production cuts. The workers announced a one-day strike on October 18, it added.
Earlier, carmaker Volkswagen had slashed its earning outlook due to underperformance in its passenger car division and poor demand.
Additionally, major German automakers, such as BMW and Mercedes-Benz too have slashed their financial forecasts due to low demand in China.
