The auto sector is jolted by gloomy updates out of Europe

Auto manufacturer stocks and auto supplier names traded lower on Monday after a wave of guidance updates from European automakers sent waves of worry through the sector.

The wave of negative news included Stellantis N.V. (NYSE:STLA) lowering its financial outlook for 2024, citing challenges in North America and a downturn in the global industry landscape. The automaker announced that it anticipates an adjusted operating income margin between 5.5 and 7% for 2024, a significant decrease from the previously projected “double-digit” range. Stellantis (STLA) sunk to a 52-week low in early trading and was down 13.6% at 10:20 a.m. Meanwhile, Aston Martin Lagonda (OTCPK:AMGDF) (OTCPK:ARGGY) fell sharply in early trading on Monday after the automaker became the latest to issue a profit warning as it struggles to ramp up production volumes. The British luxury carmaker warned of lower annual core profit and said that it no longer expects to be positive free cash flow in the first half of the year. There was also more concern over Volkswagen AG (OTCPK:VLKAF) (OTCPK:VWAGY), which fell 3.3% as investors wait for key production announcements.

General Motors (GM) was down 2.7% and Ford Motor Company (F) dropped 2.3% in reaction to the developments.

As for auto industry suppliers, Cooper-Standard Holdings (CPS) was down 3.4% in early Monday morning trading, while Adient plc (ADNT) shed 3.0% and Aptiv PLC (APTV) peeled off 2.9%. Magna International (MGA), American Axle & Manufacturing (AXL), PHINIA (PHIN), Dana (DAN), Goodyear Tire &Rubber (GT), Garrett Motion (GTX), Lear Corp. (LEA), and Gentex (GNTX) were also all down at least 2%.