It is not only the German car industry in crisis, but almost all European car manufacturers are in trouble. Many of them are now forced to adjust their financial expectations for 2024 downwards.
Stellantis thinks it will make a lower profit margin this year than previous estimates due to, among other things, rising costs at the struggling Jeep, Dodge and Chrysler brands in the United States. Previously, the group assumed a double-digit margin, but now it has been adjusted to 5.5 to 7 percent, it says. Jutarnji.hr.
The announcement is in line with other reports from German automakers, which recently announced that they could no longer meet their earlier forecasts for this year. Volkswagen warned investors on Friday that sales and profitability this year will be lower than the German car company previously expected. That’s partly because Volkswagen parts and new car sales have been disappointing. According to Volkswagen, this is due to “deteriorating economic conditions”.
Mercedes and BMW also cut profit expectations for this year, as did Britain’s Aston Martin. The German automotive industry is also suffering from weak demand for electric cars in the European Union. Economic problems in China are also working against the industry, while new competitors have emerged from China that are trying to shake up the market with their prices.
Because of all this, the car manufacturer’s shares fell on Monday on the European stock markets. On the stock exchange in Milan, Stellantis, parent company of Peugeot, Citroën, Fiat and Opel, among others, fell by almost 13 percent. Aston Martin fell almost 20 percent on the London Stock Exchange. Volkswagen, Mercedes-Benz and BMW lost almost three percent of their value on the stock exchange in Frankfurt, and Renault almost 4 percent on the stock exchange in Paris.
Source: Jutarnji.hr
Photo: Arhiva Autoblog.rs / BMW
Source: autoblog.rs
