Stellantis lowers 2024 financial outlook, warns of challenges for Ford and GM investors

Stellantis has lowered its 2024 financial guidance, warning investors of significant challenges ahead. The company now expects adjusted operating income between 5.5% and 7%, down from previous double-digit forecasts. Free cash flow is projected to be negative, between $5.6 billion and $11.2 billion. The automaker cited increasing inventory and tough conditions in China as key factors for the downgrade. Stellantis plans to reduce production by 200,000 vehicles in the second half of 2024 to manage inventory levels more effectively. China's competitive electric vehicle market poses additional difficulties for foreign automakers. Analysts suggest that companies like Ford and GM may need to reconsider their strategies in China as they face declining sales and excess production capacity.