European Automakers Struggle Amid Profit Warnings and Chinese Competition
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.
Russell Shor
Senior Market Strategist
Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.
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