The car company Stellantis is slashing its profit expectations for this year due to problems in the North American market and the weak industry situation. CEO Carlos Tavares (66) now only expects an operating profit margin of 5.5 to 7.0 percent adjusted for special effects, as Stellantis announced in Amsterdam. So far there should be a double-digit percentage left.
At the multi-brand group (among others Opel, Peugeot, Citroën, Fiat, Chrysler, Jeep, Alfa Romeo), US business had recently deteriorated significantly. In the North American market, the carmaker usually makes the lion’s share of its profits from large SUVs and pickup trucks. However, there are currently too many unsold cars on dealer lots, which is reducing sales prices. The half-year results had already noticeably disappointed investors.
The North American action program accounts for about two-thirds of the reductions in margin guidance, it said. In addition, sales in most other regions would be weaker than expected. Before Stellantis, many car companies had already had to trim their profit prospects for the current year, including the German car manufacturer Mercedes-Benz, BMW, Porsche – and that crisis-hit Volkswagen Group twice.
Aston Martin also cuts the forecast
Another profit warning came from Aston Martin on Monday. Broken supply chains and a weakness in China are affecting the British sports car manufacturer. The board therefore expects a lower core profit for the year as a whole than previously forecast, Aston Martin announced on Monday. In addition, the cash flow will probably not be positive in the first half of the year.
Aston Martin is experiencing increasingly late component receipts due to disruptions at several of its suppliers. The group will therefore cut its wholesale volume by around 1,000 vehicles in 2024 to address the problems.