Volkswagen, Mercedes, and BMW have all slashed their forecasts this month, with Aston Martin and Stellantis following suit on Monday morning. The broader picture reveals that the European auto industry has stalled.
Aston Martin wrote in a statement Monday that it expects annual adjusted earnings before interest, taxes, depreciation and amortization margin in the high teens percentage, compared with a previous outlook of around 20s percentage.
The British luxury sports car maker anticipates wholesale volumes will decline for the full year versus its prior growth expectation. The good news is the level of hemorrhaging cash in the first half will be lower in the second half. Management previously expected positive free cash flow in the second half.
The revision was blamed on “instability” across its supply chain and a slowdown in Chinese vehicle demand.
“What is different now over the past six-to-nine months is the blue-chip suppliers have had fires, floods or administrators appointed to an extent and a scale that I personally haven’t seen in my career,” Chief Executive Officer Adrian Hallmark told analysts during a call.
