INTERNEWSTIMES.COM – Stellantis, the world’s fourth-largest automaker, has slashed its earnings forecast for the year, citing challenges in its U.S. operations and growing competition from Chinese carmakers. The company is facing pressure from dealers and the United Auto Workers union after a disappointing first half of the year.
The company is accelerating efforts to turn around its North American business, including reducing dealer inventory and offering higher incentives. However, the company now expects a negative cash flow for the year, a significant revision from its previous positive forecast.
Stellantis is also facing pressure in Italy, where production cuts have led to a one-day strike by autoworkers.
The company’s struggles highlight the challenges facing the global automotive industry, which is grappling with rising costs, supply chain disruptions, and a shift towards electric vehicles. Stellantis’s efforts to turn around its U.S. business will be crucial to its future success. (Red)
