Stellantis, the world's fourth-largest automaker, announced on Monday that it has lowered its full-year profit margin forecast due to deteriorating global market conditions and heightened competition in the electric vehicle sector from China.
The company now expects its adjusted profit margin to range between 5.5% and 7.0%, down from the previously anticipated "double-digit" figures. Additionally, Stellantis revised its industrial free cash flow forecast to between negative €5 billion and €10 billion, compared to the earlier positive outlook.
Stellantis noted that sales in most regions have been lower than expected in the second half of this year. The company attributed the intensified competitive landscape to increased industry supply and growing competition from China.
Last Friday, Volkswagen also lowered its annual profit forecast for the second time in three months, citing weaker-than-expected performance in its passenger car division.
