LONDON: European carmaker Stellantis joined on Monday bigger rival Volkswagen and others in warning about the worsening outlook for auto demand and rising costs, wiping billions of euros off the sector’s market value. The automakers are struggling with weak demand in China and the United States and a potential trade war between Beijing and the EU as the bloc prepares to finalize import tariffs on Chinese electric vehicles over alleged subsidies. British luxury carmaker Aston Martin also issued a full-year profit warning on Monday, partly blaming falling demand in China, as Mercedes-Benz and BMW also did earlier this month.
Aston Martin’s shares plunged as much as 20 percent to their lowest in nearly two years. Shares in Stellantis were down nearly 11 percent, hitting their lowest since December 2022 as investors digested the scale of the world No 4 automaker’s problems. Stellantis shares have lost 38 percent in value this year, making it Europe’s worst performing automaker.
The latest warnings follow Volkswagen’s announcement late on Friday that it was cutting its 2024 profit outlook for the second time in under three months. Its shares were down a little over 2.8 percent in mid-morning trading on Monday.
The German car giants have been reliant on China for around a third of their sales and have been hit by a weaker economy there and fiercer competition from domestic Chinese automakers and a vicious EV price war. Misjudging US cash cow Falling European demand has no.
