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Carmaker Stellantis slashes forecasts as it faces industry slump and Chinese competition

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MILAN (AP) — Carmaker Stellantis, the world’s fourth largest carmaker, slashed its earnings forecast on Monday, citing investments to turn around its U.S. operations amid a wider industry slump and increased Chinese competition.

Stellantis said it was accelerating efforts to turn around North America, including bringing dealer inventory levels to no more than 300,000 vehicles by the end of the year, instead of the first quarter of 2025 as previously planned.

The action is in the back of a decrease in shipments of 200,000 vehicles in the second half of this year compared with a year earlier, twice as many as the company had forecast. The company will offer higher incentives on 2024 and older models.

In its profit warning, Stellantis said it expected to finish the year with a negative cash flow of 5 billion euros to 10 billion euros, ($5.6 billion to $11.2 billion) instead of positive.

The carmaker, which was created in 2021 from the merger of PSA Peugeot with Fiat Chrysler Automobiles, also dropped its operating profit margin guidance to 5.5% to 7.0%, instead of double digits.

Stellantis shares were down 14.45%, trading on midday Monday in Milan at 12.45 euros.

The struggling maker of Jeep and Ram is looking for a new CEO to succeed Carlos Taveres, who is under fire from U.S. dealers and the United Auto Workers union after a dismal first-half financial performance. The company has portrayed the search as a normal leadership succession plan.

UAW leadership met last week to review contract violations and what they called illegal behavior by Stellantis. UAW President Shawn Fain advised Stellantis in a letter that the union is moving toward a strike. An autoworkers’ strike last year cost the company 3 billion euros ($3.2 billion) in revenues.

Stellantis is also under pressure in Italy, home to one of the main shareholders, due to production cuts. Autoworkers announced a one-day strike on Oct. 18.

The company reported that first-half net profits were down 48% compared with the same period last year. First-half sales in the United States were down nearly 16%, even though overall new vehicle sales rose 2.4%.

The Canadian Press. All rights reserved.



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NHTSA: Cruise to pay $1.5M penalty after failing to fully report crash involving pedestrian

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General Motors’ Cruise autonomous vehicle division will pay a $1.5 million penalty after the unit failed to fully report a crash involving a pedestrian, the National Highway Traffic Safety Administration said Monday.

The crash on Oct. 2, 2023 prompted Cruise to suspend driverless operations nationwide after California regulators said that its cars posed a danger to public safety. The state’s Department of Motor Vehicles revoked the license for Cruise, which was transporting passengers without human drivers throughout San Francisco.

A month after the incident, Cruise recalled all 950 of its cars to update software.

The NHTSA said on Monday that as part of a consent order, Cruise will also have to submit a corrective action plan on how it will improve its compliance with the standing general order, which is for crashes involving automated driving systems.

“It is vitally important for companies developing automated driving systems to prioritize safety and transparency from the start,” NHTSA Deputy Administrator Sophie Shulman said in a statement. “NHTSA is using its enforcement authority to ensure operators and manufacturers comply with all legal obligations and work to protect all road users.”

The consent order’s base term is two years. The NHTSA has the option to extend the order for a third year.

“Our agreement with NHTSA is a step forward in a new chapter for Cruise, building on our progress under new leadership, improved processes and culture, and a firm commitment to greater transparency with our regulators,” said Steve Kenner in a prepared statement, the chief safety officer for Cruise. “We look forward to continued close collaboration with NHTSA as our operations progress, in service of our shared goal of improving road safety.”

Cruise will meet quarterly with the NHTSA to talk about the state of its operations, and to review the periodic reporting and progress on the requirements of the consent order. Cruise will also submit a final report detailing its compliance with the consent order and state of operations 90 days before the end of the base term.

The Canadian Press. All rights reserved.



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One person dead after morning shooting in Toronto’s Weston neighbourhood

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Toronto police say one person is dead after being shot in the northwestern part of the city on Monday morning.

Police say officers were called to the scene in the Weston neighbourhood just before 7:30 a.m.

They say they found the male shooting victim on the northwest corner of the Jane Street and Lawrence Avenue West intersection.

Police say the victim was pronounced dead at the scene.

They have not identified him or indicated his age.

Police say officers are investigating and anyone with information should contact them.

This report by The Canadian Press was first published Sept. 30, 2024.

The Canadian Press. All rights reserved.



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Ontario marks National Day for Truth and Reconciliation, Toronto opens spirit garden

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TORONTO – A monument to honour residential school survivors is set to be unveiled in Toronto’s Nathan Phillips Square today.

It’s one of dozens of events in Ontario marking the National Day for Truth and Reconciliation, including a ceremony on Parliament Hill.

The new spirit garden in front of Toronto’s city hall comes in response to the Truth and Reconciliation Commission’s call for governments to establish publicly accessible, highly visible monuments honouring survivors and thousands of children who died in residential schools.

The garden’s centrepiece is a large turtle sculpture positioned in a reflecting pool that has the names of the 18 residential schools that once operated in Ontario inscribed on its north wall.

Beginning in the 19th century, more than 150,000 Indigenous children were separated from their families and communities and sent to church-run residential schools, where abuse, malnutrition and inadequate health care were rampant.

The Truth and Reconciliation Commission found the school system, which operated for more than 150 years, was a central element of a state-backed policy that attempted cultural genocide.

Ontario Regional Chief Abram Benedict says the lasting intergenerational impacts of the schools “must never be forgotten.”

“Our unique Nations and cultures exist today because survivors of the residential school system fought to keep them alive — often in the face of serious personal harm,” Abrams said in a statement.

“They passed on the traditions, languages and teachings these institutions sought to destroy so that all of us today know who we are, where we come from and how we got here.”

Monday is also recognized as Orange Shirt Day, an Indigenous-led grassroots commemorative day recognizing the effects of residential schools.

The initiative began in 2013, inspired by Phyllis Webstad’s story of having the orange shirt her grandmother gave her taken away when she arrived at a residential school in 1973 at the age of six.

In a statement, Premier Doug Ford said a number of Ontario government buildings would be lit orange. He encouraged people to “learn more and reflect on this dark and disturbing period in our country’s history and acknowledge the intergenerational harm it has caused.”

The day is a federal statutory holiday, but not a provincial one in Ontario.

New Democrat deputy leader Sol Mamakwa, the only First Nation representative at the provincial legislature, said he aims to table legislation in his own Indigenous language to have the day declared a paid provincial holiday.

This report by The Canadian Press was first published Sept. 30, 2024.

— With files from Liam Casey.

The Canadian Press. All rights reserved.



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