What's happened
Aston Martin and Stellantis have issued profit warnings due to declining sales in China and supply chain disruptions. Aston Martin plans to produce 1,000 fewer cars this year, while Stellantis anticipates lower profit margins amid increased competition from Chinese automakers. Both companies reflect broader challenges in the European automotive market.
Why it matters
What the papers say
According to BBC News, Aston Martin's CEO Adrian Hallmark emphasized the need for 'decisive action' due to supply chain issues and a downturn in the Chinese market. The Guardian noted that Stellantis's profit warning was driven by a 'deterioration in the global industry backdrop' and increased competition. The Independent highlighted that Aston Martin's production issues stem from delays in component arrivals, which have significantly impacted their operational efficiency. These insights collectively illustrate the challenges faced by both companies amid a shifting automotive landscape.
How we got here
The automotive industry is facing significant challenges, particularly in Europe, with declining sales in China and increased competition from Chinese brands. Supply chain disruptions have further complicated production for luxury carmakers like Aston Martin.
More on these topics
-
China, officially the People's Republic of China, is a country in East Asia. It is the world's most populous country, with a population of around 1.4 billion in 2019.
-
Aston Martin Lagonda Global Holdings plc is a British independent manufacturer of luxury sports cars and grand tourers. It was founded in 1913 by Lionel Martin and Robert Bamford.
-
Mercedes-Benz is both a German automotive marque and, from late 2019 onwards, a subsidiary of Daimler AG. Mercedes-Benz is known for producing luxury vehicles and commercial vehicles. The headquarters is in Stuttgart, Baden-Württemberg. The name first ap
-
Stellantis is the Dutch-based multinational automotive manufacturing corporation resulting of the merger of French automaker Groupe PSA and Italian-American automaker Fiat Chrysler Automobiles, following completion of a 50-50 merger agreement.
-
Volkswagen, shortened to VW, is a German automaker founded in 1937 by the German Labour Front, known for the iconic Beetle and headquartered in Wolfsburg.