Car manufacturer Stellantis (Fiat, Jeep, Citroën) issues a profit warning

This article was last updated on September 30, 2024

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Car manufacturer Stellantis (Fiat, Jeep, Citroën) issues a profit warning

Car manufacturer Stellantis is achieving less profit than expected this year. Before the stock markets opened this morning, the company issued a profit warning.

With the profit warning, Stellantis (parent company of Citroën, Fiat and Jeep, among others) follows other European car manufacturers.

Stellantis attributes the setbacks to higher costs, strong competition and lower sales, especially in the United States. After the profit warning, the stock price of Stellantis shares plummeted by 13 percent in Milan and Paris.

Also setbacks in the German car industry

On Friday, Volkswagen issued a profit warning for the second time this year. The German group now expects to deliver 9 million vehicles to customers instead of 9.5 million. Mercedes-Benz and BMW also previously released disappointing news.

Last week there were crisis meetings in Germany about the car industry between the government, car companies, suppliers and trade unions. No concrete decisions regarding support for the industry were taken. The government says that measures are necessary with a view to the long term.

There is a lot of competition from China with electric cars. The German car industry wants the government to encourage consumers with subsidies to buy an e-car made in Germany. There was a subsidy scheme in Germany, but it was abolished at the end of last year.