Why automakers have had a tough start to the week

 Russell Shor, Senior Market Specialist at Tradu commented:

“European automakers faced a tough start to the week as Stellantis, Aston Martin, and Volkswagen all issued profit warnings, citing industry challenges and competition from China. Stellantis revised its 2024 guidance, reducing its expected operating income margin to 5.5%-7%, down from double digits, due to weaker sales across most regions and increased competition from Chinese electric vehicle makers.

“Aston Martin also cut its production target, citing supply chain disruptions and China’s economic woes, while Volkswagen lowered its outlook for the second time in three months. This turmoil wiped nearly $10 billion from the STOXX Auto & Parts index, with Stellantis and Aston Martin stocks plummeting 14% and 20%, respectively.

“Analysts predict sector weakness will persist, with recovery unlikely until 2025.”