Summary
Stellantis, the world’s fourth-largest car manufacturer, has significantly reduced its dealer inventory and profit margin forecasts as it grapples with a downturn in the automotive industry and intensified competition from Chinese manufacturers. The company anticipates a negative cash flow between €5 billion to €10 billion for the year, a stark contrast to its previous expectations of positive cash flow.
Amid these challenges, Stellantis is accelerating efforts to bring dealer inventory levels down to 300,000 vehicles by the end of the year, a move that reflects a substantial decrease in vehicle shipments—200,000 fewer than anticipated for the second half of 2023. The company has also revised its operating profit margin forecast to between 5.5% and 7.0%, down from earlier goals of double digits. These adjustments come in light of a 48% drop in net profits for the first half of the year compared to the same period last year and a nearly 16% decline in U.S. sales, despite a slight overall increase in new vehicle sales across the market. Stellantis is actively seeking a new CEO following criticism from U.S. dealers and the United Auto Workers union regarding its financial performance and production strategies.
Carmaker Stellantis slashes forecasts, faces industry slump and Chinese competition
Sep. 30 / Abc News “ MILAN -- Carmaker Stellantis, the world’s fourth largest carmaker , slashed its earnings forecast on Monday, citing investments to turn around its U.S....
Sep. 30 / Google News / Highlights Stellantis' strategic pivot in response to a challenging market, emphasizing the company's drastic inventory reduction and profit margin adjustments, while providing a clear overview of its financial struggles. Offers a comprehensive look at Stellantis' operational challenges and future plans, including the urgency of leadership changes and detailed context on its competitive landscape, enhancing understanding of the automotive sector's dynamics. “ Carmaker Stellantis slashes forecasts as it faces industry slump and Chinese competition The Associated PressJeep Owner Stellantis Warns of Deterioration...