The most revenue collapse automotive industries how Nissan: and Stellantis, reignited investors’ worst fears about a global industrial downturn. The decline already seen in the individual electric vehicle segment points in this direction, which has also been seen Tesla also reduced productivity.
early today Stellantis, which controls 14 leading brands including Jeep, Peugeot, Alfa Romeo and Fiathe announced an impressive 48% drop in profits a total of 5.6 billion euros in the first six months of the year, well below expectations. In fact, its profits collapsed by 99% in the first fiscal quarter.
Its sales fell by 14% to 85 billion euros, mainly due to a decline in both Europe and the American market.
Accordingly, the Japanese giant Nissan announced worst quarterly performance in three yearsas well as its operating profit fell 99% to ¥995 million in the quarter ended June 30, compared to 128.6 billion yen in the same period last year. In fact, following this development, the company was forced to revise its estimated forecast for the year.
These elements naturally “knocked” their shares down by about 10%. how did they train and wider pressures on the industry because the danger points are common for most car manufacturers; tough competition in the US market, moderate levels of consumption in Europe and of course low growth rate of EV sales;in which all companies have invested billions to follow the green transition.
The latter appears to be more visible in the electricity generation companies themselves, such as Tesla, which also announced a sharp 45% cut in second-quarter profits; to $1.47 billion, well below the already-shrinking $1.9 billion expected by analysts. In fact, the free fall of Tesla shares, by about 12%, was one of the main elements that “knocked down” Wall Street in the “black” session on Wednesday.
“What’s happening in the industry and the competition is moving much faster and harder than we expected this year, so the transition is quite bumpy,” admitted CFO Natalie Knight of Stellantis.
Accordingly, Nissan executives admitted that the company failed to see a recovery in hybrid car salesas growing consumer objections to electricity usage and pricing have kept industry sales low, certainly lower than what automakers around the world wanted and hoped for.
The latter, moreover, is a problem whose change is not expected soon or easily. High prices, questions about EV batteries, the availability of charging networks and the performance of electric vehicles They are expected to continue to maintain a cautious attitude of consumers.