(Boursier.com) — The warning of Stellantis tries to be overcome in the automobile sector this Tuesday with a jump of 0.8% in value to 12.50 euros after its fall of 15% yesterday… After Volkswagen Friday and Aston Martin who had already revised their forecasts downwards in recent hours, Stellantis, in difficulty in North America where decided “to significantly amplify the actions undertaken to correct performance problems”, Stellantis also having to face the sluggishness of the market global: “the deterioration of the global automotive context is marked by a 2024 market forecast down compared to the start of the year, even though competition has intensified due to the increase in supply and increased Chinese competition. Among the latest broker opinions, Wells Fargo maintains its recommendation to ‘underweight’ on Stellantis with a price target reduced from 12 to 11 euros, while Intesa Sanpaolo went back from buy to hold on Volkswagen with an adjusted target of 143 .10 to 119.70 euros.
Europe’s largest automaker has cut its 2024 revenue, profit and cash flow forecasts due to falling demand for its cars… The company now plans to deliver fewer vehicles this year only in 2023, its fourth annual decline in sales in five years. The German group is targeting a profit margin of around 5.6% in 2024, compared to 6.5 to 7% previously, with a net cash flow for its automotive division of around 2 billion euros, compared to 2.5 to 4.5 billion hoped for so far.
The Wolfsburg group is struggling in China where it has failed to keep pace with the rapid transition to electric vehicles and where competition is fierce. “Volkswagen’s scale advantages in China have likely peaked as local customers begin to favor domestic brands,” Matthias Schmidt, an independent auto analyst based near Hamburg, told ‘Bloomberg’, adding that the war “brutal” prices in this country harm VW’s results.
The French automobile market saw its new car registrations fall sharply by 11.07% in September, to 139,004 units. Over the first 9 months of the year, the market recorded a drop of 1.76%, with 1,265,905 registrations, show data from the Automotive Platform (PFA). The two major national manufacturers particularly suffered last month in France: Registrations of the group’s new cars Stellantiswhich includes the Peugeot, Citroën, DS and Opel brands, fell by 17.52% over one year. The group Renault (Renault, Dacia and Alpine brands) saw its registrations decrease by 14.27%. Conversely, Toyota (+19,2%) et Volkswagen (+4.3%) did well.
Europe lagging behind
As the transition to electric vehicles is in full swing in the world’s largest auto market, Europe remains lagging… Sales in the region have slowed sharply after countries like Germany and Sweden cut back or removed incentives for purchasing clean vehicles, catching VW and its European counterparts off guard. Volkswagen is far from being an isolated case on the other side of the Rhine since Mercedes-Benz et BMW have also issued a warning about their results in recent weeks.
Finally, Aston Martin has just announced that it has reduced its wholesale volume by around 1,000 units in 2024 to cope with disruptions in its supply chain and persistent macroeconomic weakness in China. The UK company now expects Q3 wholesale volumes and adjusted EBITDA to be lower than market forecasts. It also no longer expects to achieve positive free cash flow in the 2nd half of 2024…
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