Stellantis announced today cut in estimates for the current yearbut she is not alone: also Aston Martin worsened the outlook and last Friday Volkswagen has worsened the forecasts for the financial year, following the example of its compatriot BMW. A confirmation of crisis in which the sector finds itself automotivewhich has staked everything on the energy transition and electric vehicles and found itself faced with fierce Chinese competition, after having suffered the long-term effects of the pandemic and the war in Eastern Europe (the bottlenecks in the supply chains and the increase in the costs of raw materials and energy).
Stellantis cuts 2024 guidance
Stellantis revised guidance on 2024 results is downwardin the face of “performance issues in North America” and the “deterioration in global dynamics” of the sector.
The Group has accelerated the plan normalization of stock levels in the United States with a goal of no more than 330,000 units in network inventory by the end of 2024 rather than Q1 2025. The actions include a reduction in deliveries to the network of more than 200,000 vehicles in the second half of 2024, an increase in incentives on 2024 and previous year models and productivity increase initiatives that include adjustments to both costs and production capacity.
“The deterioration in the global conditions of the sector – explains the Turin Group – translates into a market forecast for 2024 at a lower level compared to the beginning of the year while the competitive dynamics have intensified due to both the greater offer and the ‘increased Chinese competition’.
There new guidance report a Adjusted Operating Result Margin between 5.5% and 7.0% for the whole of 2024, down compared to the previous “double digit” (double digit); a Industrial Free Cash Flow expected in a range between -5 and -10 billion euros compared to the previous “Positive”.
Stock market crash
As a result of the cut in estimates for the current year, the Stellantis shares are plummeting on the stock market. This morning the stock slipped to 12.674 euros, recording a decline of 12.89%. The Turin car manufacturer thus continues a strongly negative performance, leading to -40% difference of price compared to the beginning of the year and others – 52% performance over the last six months. In the last month alone, Stellantis has lost 16% of its value.
Cut even for his peers
This morning also English Aston Martin has issued a warning for the current year. The company has revised downwards the forecasts on operating margin and on free cash flow industrial for 2024reflecting steps taken to address problems in North America and the global slowdown in the automotive industry.
Same move on Friday by the German Volkswagenwhich cut guidance Friday night for the second time this year, anticipating a profit margin of 5.6% in 2024, down from the previous 6.5-7% and below the conseneus (6.5%), while waiting declining sales compared to an initial growth estimate of 5%.
