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Auto stocks took a hit as Stellantis NV, the world's fourth largest carmaker, revised its 2024 financial forecast. Following this update, Ford shares fell over three per cent, and General Motors saw a decline of nearly four per cent on Monday, September 30. Stellantis NV is focusing on its US operations amidst industry challenges and increasing competition from China. The revised forecast includes accelerated normalization of inventory levels and cost-cutting measures to address the current market conditions. Stay informed about the automotive industry's evolving landscape. #AutoIndustry #Finance #StellantisNV

Stellantis Lowers 2024 Profit Forecast Amid Worsening US Sales Crisis Stellantis cut its 2024 profit forecast on Monday and warned it would burn through more cash than expected as Europe’s No.2 carmaker vowed to cut production and offer deep discounts to revive its U.S. business , wiping billions off its market value. The world’s fourth-biggest carmaker by sales said it faces weakening global demand and stiff competition from China, echoing similar comments from rivals including Volkswagen ( ETR:VOWG_p ) which cut its full-year profit outlook on Friday. “Competitive dynamics have intensified due to both growing industry supply and increased Chinese competition,” Stellantis (NYSE:STLA) said in its guidance. Instead of positive cash flow, it now expects negative cash flow of between 5 and 10 billion euros ($5.58-11.17 billion). Italian brokers Equita and Akros said it put the carmaker’s dividend and share buyback programs at risk. Stellandis said he would have no further comment beyond his guidance on Monday. The company also said it now expects an adjusted operating profit margin of between 5.5% and 7% this year, lower than the double-digit forecast investors expect from the automaker because of its profitable U.S. operations. “This warning confirms how difficult the situation is at the company,” Bernstein analysts wrote in a client note. “The scale of the hit to margins far exceeds our already lowered expectations.” Its shares fell as much as 14 percent by 1052 GMT, wiping about 6 billion euros ($6.7 billion) off the company’s market value and hitting their lowest level since October 2022. They have fallen around 40% this year, the worst performance among European carmakers. BMW (ETR:BMWG) and Mercedes have also warned of lower-than-expected earnings. https://lnkd.in/esGhSAff

BMW Backs FY24 Profit View After Q2 Results Drop; Stock Down Shares of BMW Group were losing around 2 percent in the German trading after the automajor reported Thursday weak profit, revenues and deliveries in its second quarter. Looking ahead for fiscal 2024, the company continues to expect Group profit before tax to decrease slightly due to higher manufacturing and fixed costs. For fiscal 2024, the company continues to expect an EBIT margin of between 8 and 10 percent for the Automotive segment, compared to prior year's 9.8 percent. BMW Group expects to see slight growth in customer deliveries worldwide in the full year. In China, the company expects the economic situation to begin to stabilize in the third quarter. #BMW #Germanstocks #Germanautomakers #DAX #earnings

Europe automaker shares slump after Mercedes becomes latest to cut 2024 guidance Mercedes shares fell more than 8% Friday after becoming the latest carmaker to cut its guidance this year as sluggish demand in China and trade disputes weigh on the sector. The company said late Thursday that it now expects group earnings before interest and taxes (EBIT) to come in “significantly below” the previous year and that its adjusted return on sales would be between 7.5% and 8.5%, down from its earlier forecast of 10% to 11%. Shares pared losses slightly to trade 6.9% lower as of 9:40 a.m. London time. The auto sector was dragged lower, down 3.2%, as Volvo and Stellantis fell 4% and 2.7%, respectively. Mercedes’ revision was triggered by a “further deterioration of the macroeconomic environment,” primarily driven by weaker Chinese consumption and a prolonged downturn in the country’s real estate sector, the firm said in its Thursday statement. “This affected the overall sales volume in China including sales in the Top-End segment. Overall, the sales mix in the second half of 2024 is expected to remain unchanged versus the first half, and therefore weaker than originally expected,” the company said. Fellow German automaker BMW also recorded steep losses last week after lowering its 2024 profit margin outlook due to slumping sales in China and an issue with a braking system supplied by Continental. Source: https://lnkd.in/dtmKp4xm

Mercedes-Benz Shares Tumble After Profit Warning Due to Weak China Demand Mercedes-Benz, the German luxury automaker, has seen a significant drop in its share price following a profit warning issued on September 20, 2024. The company cited weakening demand in China as the primary reason for the downgrade, which has had ripple effects across the European automotive sector, reports CNBC. Profit Warning Details Mercedes-Benz announced a substantial revision to its 2024 financial guidance. The company now expects an adjusted return on sales to be between 7.5% and 8.5%, down from the previous forecast of 10% to 11%. Additionally, full-year EBIT (Earnings Before Interest and Taxes) is expected to be “significantly below” […] by Haye Kesteloo #ev #BMW #China #Europe #GM #Make #MercedesBenz #Porsche #SEC #Tesla #Volkswagen

I’m excited to share my latest analysis on Magna International, a leading player in the automotive industry with consistent above-industry ROIC, a strong balance sheet, and robust cash flow profile. I explore how improving margins and strategic EV investments position Magna for future growth. Check out the full report here and share any feedback. #EquityResearch #Investing #MagnaInternational #AutomotiveIndustry #Finance

3 Automotive Parts Makers Growing at Double-Digit Rates

New Post: The Auto Magazine - Stellantis Reports Lower Q3 2024 Net Revenues - https://lnkd.in/dGMhaiCC Stellantis reports lower Q3 2024 Net revenues amid transitional period of product upgrades and inventory reduction actions. The Company reiterates its 2024 financial guidance, which was updated on September 30, 2024. Net revenues declined 27% year-over-year, primarily due to lower shipments and unfavorable mix, as well as pricing and foreign exchange impacts. Consolidated shipments(1) for the […]

New Post: The Auto Magazine - Stellantis Reports Lower Q3 2024 Net Revenues - https://lnkd.in/dhWZw44Y Stellantis reports lower Q3 2024 Net revenues amid transitional period of product upgrades and inventory reduction actions. The Company reiterates its 2024 financial guidance, which was updated on September 30, 2024. Net revenues declined 27% year-over-year, primarily due to lower shipments and unfavorable mix, as well as pricing and foreign exchange impacts. Consolidated shipments(1) for the […]

Both Stellantis and Aston Martin Lagonda Ltd have issued profit warnings partly due to China. A word to the wise...if China is your only future, think again. Chrysler, Dodge, Jeep and Maserati are looking at continued weakness across ALL REGIONS (U.S!!) in the second half of 2024. We continue to be bullish on Aston Martin with new leadership. At Stellantis, replacing Carolos Tavares is an appropriate first step. ➡ Aston said it no longer expects to achieve positive free cash flow....its full-year gross margin is anticipated to come in below 40%, compared with a previous target of around that threshold. ➡ "Volkswagen Group once more slashed its own annual outlook on Friday, now guiding for an operating return on sales of 5.6% in 2024, from a 6.5-7.0% range previously." PLEASE NOTE: We are currently soliciting for OEM, DEALER GROUP, SUPPLIER, SaaS contracts/other projects. Feel free to reach out to me directly. 416.993.9356 [email protected] #automotive #automotiveindustry #innovation #branding #technology #business #leadership #dealership #retail #OEM