Shares in Jeep-maker Stellantis and Britain's luxury carmaker Aston Martin suffered a blow on Monday after both companies joined European rivals such as Volkswagen and BMW in cutting their profit forecasts. European auto giant Stellantis, whose other top brands include Peugeot, Ram and Fiat, cited efforts to improve its U.S.
business as well as competition from Chinese automakers. The company, which also makes Maserati, Dodge and Chrysler cars, said it now expected an adjusted operating income margin of 5.5 to 7.
0%. It had previously expected double-digit growth. Stellantis shares sank by almost 14.
7% to close at 12.40 euros ($13.82) on the Paris stock exchange.
"While this is a highly anticipated profit warning ...
the magnitude surprises," UBS bank analysts said in a note. For analysts at French brokerage Oddo BHF, the alert "raises major questions about the vision and direction for the company..
. and its credibility among investors." In a statement, the company said efforts to improve its business in North America accounted for about two-thirds of the revision of its financial guidance for the year.
Stellantis said it had brought forward to the end of this year plans to reduce its dealer inventory levels to 330,000 units in the United States. Stellantis offered promotional deals as U.S.
dealerships have struggled to reduce their inventories. The company, which previously expected a positive cash flow, also said it now forecasts negative cash flow ranging from 5 billion to .