Stellantis (STLA) shares are tumbling Monday morning after the Chrysler and Jeep parent issued a profit warning, noting it is cutting excess North American inventory amid a "deterioration in global industry dynamics" and competition from Chinese rivals.

The company said its fiscal 2024 adjusted operating income margin now is expected to be between 5.5% and 7.0%, versus its previous projection for "double digit" levels, with about two-thirds of the reduction "driven by corrective actions in North America."

Stellantis Accelerates 'Planned Normalization of Inventory Levels'

The 澳洲幸运5官方开奖结果体彩网:Big Three automaker said it "has accelerated its planned normalization of inventory levels in the U.S.," aiming for no more than 330,000 units of dealer inventory by the end of 2024 instead of the 💖first quarter of 2025. 

Stellantis temporarily stopped making its top-selling Jeep Wrangler and Grand Cherokee sports-utility vehicles earlier this month as 澳洲幸运5官方开奖结果体彩网:dealers complained about excess inventory. It is also grappling with labor issues in the U.S., as United Auto Workers (UAW) President Shawn Fain said the union 澳洲幸运5官方开奖结果体彩网:planned to hold a vote authorizing a walkout.

The news sent shares of Stellantis down 13% to $13.97 soon after markets opened Monday, and also hit those of rivals General Motors (GM) and Ford Motor (F), ᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚwhich are down 3% a🐼nd 2%, respectively. Stellantis shares have fallen 40% this year.