Stellantis stock (STLA) tumbled 13% early Monday after the company issued a stark warning about its North American operations, dragging other auto stocks lower in sympathy.

Stellantis — which counts Dodge, Ram, and Jeep vehicles in its product portfolio — said it would have to “enlarge remediation actions” it was planning to take due to performance issues in North America and “deterioration” in the global market, in particular, China.

“Actions include North American shipment declines of more than 200,000 vehicles in the second half of 2024 (up from 100,000 prior guidance), compared to the prior year period, increased incentives on 2024 and older model year vehicles, and productivity improvement initiatives that encompass both cost and capacity adjustments,” Stellantis said in a statement.

As a result of these strategic changes, Stellantis now sees adjusted operating income margin of between 5.5% and 7% for the fiscal year 2024, down from prior “double digits,” with two-thirds of this hit coming from actions taken in North America. Industrial free cash flow is now expected to come in at a loss of 5 billion euros to 10 billion euros ($5.58 billion-$11.17 billion), a drop from the “positive” it had seen prior.

Shares of General Motors (GM), Ford (F), and Toyota (TM) all slipped on Monday as well.

Deterioration in Stellantis’ North American business was no secret, with inventories swelling, price cuts expanding, and dealers complaining about company mismanagement.

Meanwhile, the United Auto Workers (UAW) is considering labor strikes, as it believes Stellantis violated its agreements to restart operations with various projects at Stellantis’ shuttered Belvidere, Ill., assembly plant.

Stellantis isn’t the only automaker facing structural and macroeconomic issues. German automaking giant Volkswagen (VWAGY) is planning to lay off workers in Germany due to overcapacity and downbeat sales, with workers planning to strike in retaliation.

Meanwhile, Japan’s Nissan will cut production of its Rogue SUV and Frontier pickup due to rising inventories, with global sales dropping over 5% in August. Nissan’s product mix in the US, where it lacks hybrids, is also hurting its sales performance.

Last week Morgan Stanley’s autos and mobility team, led by analyst Adam Jonas, downgraded the entire US auto sector, citing rising inventories and concerns from China as the main catalysts.

“At a high level, our downgrade is driven by a combination of international, domestic and strategic factors that we believe may not be fully appreciated by investors,” the Morgan Stanley team wrote in the note. “US inventories are on an upward slope with vehicle affordability … still out of reach for many households. Credit losses and delinquencies continue to trend upward for less-than-prime consumers. And China’s 2-decade-long growth engine has not stalled.”

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Interestingly, Morgan Stanley maintains its Overweight rating on Tesla (TSLA), citing Tesla’s AI and self-driving prowess. Tesla’s highly anticipated robotaxi event is slated for next week, on Oct. 10.

Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.

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