Automotive Giant Stellantis Downgrades 2024 Projections Amid Global Industry Challenges
In a move that sent shockwaves through the market, Stellantis, the French-Italian conglomerate behind iconic brands like Chrysler, Dodge, Jeep, and Maserati, has revised its 2024 annual guidance downward. The company cited deteriorating global industry dynamics and intensified competition from Chinese manufacturers as key factors contributing to the adjustment.
Stellantis now anticipates lower-than-expected sales across most regions in the second half of the year, resulting in an adjusted operating income margin between 5.5% and 7.0% for the full-year 2024 period. This marks a significant departure from the company’s initial “double-digit” outlook.
Furthermore, the automaker has reduced its projections for industrial free cash flow to a range of -€5 billion to -€10 billion, down from its previous “positive” guidance. This revision is attributed to the anticipated decrease in adjusted operating income margin and temporarily higher working capital requirements during the second half of the year.
The news sent Stellantis’ Milan-listed shares tumbling by 9% in early trading. This development comes on the heels of German automaker Volkswagen’s decision to slash its own annual outlook, citing similar challenges in the passenger car and commercial vehicle markets.
As the global automotive industry navigates uncertain terrain, Stellantis’ revised projections serve as a stark reminder of the sector’s vulnerabilities. With intensifying competition and shifting macroeconomic conditions, companies like Stellantis must adapt quickly to stay ahead of the curve.
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