Stellantis is a big company that makes cars. They told people they made a lot of cars, but actually, they made fewer cars. This made some people worried, so the price of their stock went down. It means that now, people think Stellantis is not as good at making cars as they thought before.

### Henry:
Stellantis (stock symbol: STLA) is an auto manufacturing company that combines the assets of Fiat Chrysler Automobiles and Groupe PSA to create a comprehensive line-up of vehicles. In the third quarter of 2024, Stellantis announced a decrease in their sales of vehicles in the US by 20% when compared to the same period in 2023.

The company's Q3 sales reported 305,294 vehicles sold, a significant decrease year-over-year. This announcement has resulted in a drop in the stock price of STLA. The FIM-CISL union states that the company's vehicle production in Italy would worsen, with overall production projected to fall below 500,000 units in 2024.

Matt Thompson, Head of US Retail Sales at Stellantis North America, mentioned that the company had introduced an aggressive incentive program at the start of the third quarter and combined it with competitive updates in August and September. These actions helped reduce dealer inventory by over 50,000 units, marking an 11.6% decrease by the end of the quarter.

Stellantis' recent performance has been less than expected, and the company has revised its fiscal 2024 guidance. The revision reflects the company's remediation actions on North American performance issues and the deterioration in global industry dynamics. The company now projects a fiscal 2024 adjusted operating margin of 5.5%-7.0%, down from its prior double-digit growth expectations.

Additionally, Stellantis expects fiscal 2024 industrial free cash flow of negative 5 billion euros to negative 10 billion euros, as opposed to its prior positive cash flow expectations. The negative cash flow is primarily due to a planned increase in investments, which will help the company achieve its goal of one million vehicles produced in Italy by 2030.

Stellantis shares are trading lower by 3.96% to $13.10 at last check Thursday. Read from source...

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Stellantis STLA shares are trading lower on Thursday.

The automaker reported Wednesday total U.S. sales of 305,294 vehicles in the third quarter of 2024. That's down 20% year over year.

Matt Thompson, head of U.S. retail sales at Stellantis North America, mentioned that an aggressive incentive program launched at the start of Q3, combined with significant competitive updates in August and September, led to a reduction of dealer inventory by over 50,000 units, marking an 11.6% decrease by the end of the quarter.

According to the FIM-CISL union, Stellantis' vehicle production in Italy would worsen with cars under 300 thousand. Overall production, considering commercial vehicles, would fall below 500 thousand, with less than a third of the volumes of 2023 (751 thousand).

In order to meet the government-set target of 1 million vehicles in 2030, the Stellantis Group would have to double production.

Also Read: Stellantis Extends Fiat 500 Electric Production Halt Due To Low Demand

According to Benzinga Pro, STLA stock has lost over 27% in the past year.

Last month, the company was in the headlines for revising its fiscal 2024 guidance. The decision reflects its remediation actions on North American performance issues and deterioration in global industry dynamics. The company projects a fiscal 2024 adjusted operating margin of 5.5%-7.0%, down from its prior double-digit growth expectations. It now expects fiscal 2024 industrial free cash flow of negative 5 billion euros-negative 10 billion euros versus the prior positive cash flow expectations.

Price Action: Stellantis shares are trading lower by 3.96% to $13.10 at last check Thursday.

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A new report from the IABSAF Foundation details some of the key risks and challenges faced by the Royal Bank of Scotland (RBS), including the need for the bank to take on more risk in order to achieve its targets.

The report, entitled "A Review of the Royal Bank of Scotland's Risk Management Framework", examines the bank's risk management practices, with particular focus on the potential impact of a worst-case scenario on its solvency position. The IABSAF Foundation is a non-profit organization dedicated to promoting best practice in risk management and financial stability.

According to the report, RBS faces several key challenges in the coming years, including the need to take on more risk in order to achieve its targets. This could involve investing in riskier assets, such as high-yield bonds and sub-prime mortgages, in order to boost its profits.

The report also highlights the need for RBS to improve its governance and risk management processes, in order to better manage its exposure to potential risks. This could involve implementing more robust risk management systems, as well as improving the bank's overall decision-making process.

The IABSAF Foundation also emphasizes the importance of regular and comprehensive reporting on risk management practices, in order to provide investors and regulators with a clear picture of the bank's exposure to potential risks.

Overall, the report concludes that RBS needs to make significant improvements to its risk management framework in order to ensure its long-term financial stability. This will require a concerted effort from the bank's management team, as well as increased scrutiny from regulators and investors alike.