Car industry Opel parent company Stellantis cuts profit forecast

The automotive industry is currently in crisis. Stellantis is not immune to this. The Group and its numerous brands sold fewer cars than expected, particularly in the USA.

The car manufacturer Stellantis is cutting its profit expectations for this year due to the problems in the North American market and the weak industry situation. Group CEO Carlos Tavares now only expects an operating profit margin of 5.5 to 7.0 percent adjusted for special effects, as Stellantis announced in Amsterdam. Previously, a double-digit percentage was expected to remain.

The US business of the multi-brand group (including Opel, Peugeot, Citroën, Fiat, Chrysler, Jeep, Alfa Romeo) had already deteriorated significantly recently. The car manufacturer usually makes the lion's share of its profits on the North American market with large SUVs and pick-ups. However, there are currently too many unsold cars in dealers' yards, which is reducing sales prices. The half-year results had already noticeably disappointed investors.

The action program for North America accounts for around two thirds of the cuts in the margin forecast, it was said. In addition, sales in most other regions were weaker than expected. Before Stellantis, many car manufacturers had already had to cut their profit forecasts for the current year, including the German carmakers Mercedes-Benz, BMW and Porsche - and the struggling Volkswagen Group twice.

SDA