Stellantis weak. Deliveries, Moody's and production halt weighed down

(Il Sole 24 Ore Radiocor) Declining deliveries, production stoppages and Moody's downgrade weigh on Stellantis' stock, which loses share price at Piazza Affari, although recovering slightly from its initial drop.

The morning had already got off to a bad start, after the unexpected release of consolidated deliveries figures for the third quarter, estimated to have fallen to 1.148 million units (-20% year-on-year). The contraction exceeded that of sales to end customers in the period (-15%), discounting the temporary impact of inventory reduction initiatives at the network. "The weakness in volumes is not surprising, but creates some additional concerns in the coming quarters, even if several new models will be launched," Intermonte analysts commented, highlighting the possible downward impact on revenues and Ebit. A few hours later, the car giant announced to the unions new production stoppages in November at some Italian plants (Pomigliano d'Arco, Termoli and Pratola Serra). 'These measures are necessary to adapt production to current market conditions and to ensure efficient management of resources,' the group explains. Stellantis Italia, however, assures that it is 'determined to guarantee the continuity of our plants and activities'. To conclude, Moody's Ratings lowered Stellantis' outlook from stable to negative, due to the 'severe loss of liquidity' expected in the second half of 2024, following the recent profit warning, with the expectation that operating performance will recover next year. The agency reaffirmed its 'Baa1' long-term ratings, those of senior unsecured instruments and those of senior unsecured instruments.

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