Carmaker Stellantis slashes forecasts as it faces industry slump and Chinese competition

MILAN (AP) — Carmaker Stellantis has slashed its earnings forecast, citing investments to turn around its U.S. operations as the wider automobile industry faces a slump and increased Chinese competition. Stellantis said in its profit warning on Monday that it expects to finish the year with a negative cash flow of 5 billion euros to 10 billion euros, ($5.6 billion to 11.2 billion)  instead of positive. The carmaker is the fourth in the world and it was created in 2021 from the merger of PSA Peugeot with Fiat Chrysler Automobiles. The forecast also dropped its operating profit margin guidance to 5.5% to 7.0%, instead of double digits.