Stellantis Cuts Forecasts in Further Blow to Besieged Carmakers
- Shares plunge on reduced outlook for profit margin, cash flow
- Jeep maker joins VW, Aston Martin in lowering guidance
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Stellantis NV slashed its forecasts for the year, citing plans to lower production and spend more on promotional incentives in a slowing and more competitive auto market.
Adjusted operating income margin will slump to 5.5% to 7% this year, down from a previous forecast for a double-digit percentage, the carmaker said Monday. Stellantis is also now projecting industrial free cash flow will range from negative €5 billion ($5.6 billion) to negative €10 billion, a dramatic pullback from prior guidance for a positive result.