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S&P Global Mobility’s May forecast has altered to an oil price scenario that assumes a more sustained impact through 2027, increasing pressure on vehicle demand, production costs, and supply chains. This is a modification from an earlier forecast from the respected consultancy that assumed the Iranian war and the Strait of Hormuz shut down would have only temporary negative effects on the global auto industry. [S&P Global Mobility is different from S&P Global Ratings, which is a separately managed division of S&P Global- AutoCrat.]*
“For May, S&P Global Mobility has shifted to an oil price scenario that assumes a more sustained impact through 2027, increasing pressure on vehicle demand, production costs, and supply chains. There is some early evidence that automakers are pulling forward select production as a hedge against potential feedstock and parts shortages, though existing inventories and limited alternative supply sources are helping cushion the immediate effect,” said Mike Wall, Executive Director, Automotive Analysis, S&P Global Mobility. “At the same time, region-specific challenges, especially weaker near-term demand in mainland China, are contributing to broader downward revisions across the short-term forecast horizon. The most meaningful cuts this month are concentrated in Greater China, Japan/Korea, and South Asia,” said Wall. Continue reading →
Stellantis FaSTLAne 2030 Financial Reform Revealed
Stellantis (NYSE: STLA) said today that there are six core pillars of its recovery strategy moving forward dubbed FaSTLAne 2030.* The financially challenged global automaker claimed that sharper management of its brand portfolio combined with investments in global platforms, powertrains and technology and partnerships complementing Stellantis’ core strengths will optimize its manufacturing. Empowerment of regions and local teams with excellence in execution of FaSTLAne 2030 are central to long term growth and probability. Much of the plan is a continuation and expansion of initiatives undertaken after Stellantis posted a 2025 full year loss of €22.3 Billion. The company’s brand challenges are ultimately at the whims of customers. A previous similar initiative at Jaguar Land Rover (JLR) provoked a backlash from existing and former customers.**
“FaSTLAne 2030 is the result of months of disciplined work across the Company and is designed to drive long-term profitable growth. With the customer at the center of everything we do, the plan will deliver our purpose – ‘to move people with brands and products they love and trust’ – powered by our unique combination of strengths,” said Stellantis CEO Anthony Filosa. *** Continue reading →