PARIS (Reuters) -Stellantis NV revised on Monday its guidance downward, citing a deterioration in global industry dynamics and Chinese competition on electric vehicles among other factors.
Its adjusted profit margin is now expected to be between 5.5 and 7.0% for the year, down from “double digit” previously forecast, the company said, adding industrial free cash flow is now expected to range between -5 billion to -10 billion euros, down from a prior “positive” projection.
The French-Italian carmaker said sales had been lower than expected in the second half of the year in most regions.
The profit warning comes days after Volkswagen cut its annual outlook for the second time in three months, blaming it on weaker-than-expected performance at its passenger car division.
It also adds pressure to the European Union which is in the process of finalising plans on possible tariffs on Chinese electric vehicles.
Stellantis said “competitive dynamics have intensified due to both rising industry supply, as well as increased Chinese competition.”
(Writing by Makini Brice, editing by Tassilo Hummel)
Read the full article here