Stellantis shares drop nearly 14% after profit warning on weaker sales and competition

Stellantis shares fell nearly 14% in Milan after the company lowered its profit and cash flow forecasts for 2024. The carmaker cited weaker global sales and increased competition from Chinese rivals as key factors in this decision. The company plans to reduce inventory in the U.S. and will ship 200,000 fewer vehicles to North American dealers in the second half of 2024. Stellantis also noted disappointing sales across most regions and increased incentives for older models. This warning follows a similar profit cut from Volkswagen, which is also facing challenges in the market. Both companies are dealing with declining demand and rising competition from Chinese electric vehicle manufacturers.