The automaker behind brands including Jeep (STLA), Chrysler, and Dodge slashed its full-year financial expectations on Monday, as CEO Carlos Tavares looks to fix the company’s so-called “disaster” in North America.

Stellantis cited performance issues in the market as well as “deterioration” in the global automotive industry, pointing to the rising threat of Chinese automakers and a growing supply of vehicles. Rivals such as BMW, Mercedes-Benz, and Volkswagen, as well as luxury carmaker Aston Martin, have all lowered their guidance in recent weeks, citing similar reasons.

The Netherlands-based automaker has pushed up its timeline to lower U.S. dealer inventory to about 330,000 units to the end of 2024, from the first quarter of 2025. To do so, it will cut shipments to North American over the second half of 2024 by more than 200,000 units compared to a year earlier, doubling its prior guidance.

Plus, Stellantis will offer more generous incentives on vehicles made for the 2024 model year and older, as well as launch “productivity improvement initiatives that encompass both cost and capacity adjustments.”

Stellantis’ performance in North America has been rough in recent months, plagued by big recalls, stagnating sales, plummeting profits, and quality issues. That’s in addition to the departure of several executives and bold offers to buy back at least one of the automaker’s brands. Dealerships earlier this month wrote to Tavares about the “rapid degradation” of Stellantis brands caused by “short-term decision making” that hit market share.

“A disaster not just for us, but for everyone involved — and now that disaster has arrived,” the U.S. Stellantis National Dealer Council wrote in the Sept. 10 letter.

Stellantis is also facing potential walkouts from members of the United Auto Workers (UAW) union, which filed a series of federal labor charges against the automaker earlier this month. The union accused it of failing to keep to the promises made in its labor contract and planning to transfer production of the Dodge Durango to Ontario from Detroit. Stellantis has denied both of the UAW’s allegations.

Stellantis lowered its adjusted operating income margin to between 5.5% and 7% for fiscal 2024, from its prior “double-digit” target. Expected industrial free cash flow was lowered to between negative 5 billion euros and negative 10 billion euros, from Stellantis’ prior “positive” prediction.”

“The Company will continue to leverage and expand its competitive differentiators and believes that the recovery actions being put in place will ensure stronger operational and financial performance in 2025 and beyond,” Stellantis said in a statement.

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