Stellantis cuts earnings forecast as U.S. operations struggle with industry downturn and Chinese competition
Stellantis has reduced its earnings forecast, citing the need for investments to improve its U.S. operations amid a downturn in the auto industry and rising competition from China. The company plans to cut dealer inventory levels more aggressively than previously intended. Stellantis expects a negative cash flow of 5 billion to 10 billion euros for the year, a significant shift from earlier projections. It has also lowered its operating profit margin guidance to 5.5% to 7.0%, down from double digits. The company is searching for a new CEO following disappointing financial results, including a 48% drop in first-half net profits. U.S. sales fell nearly 16%, despite a slight increase in overall new vehicle sales.