Stellantis’ (NYSE:STLA) efforts to trim inventory by reducing shipments and increasing incentive pricing on its key models came at the expense of EBITDA margins and, with the lagged effects of price reductions in North America,

Global ratings agency S&P Global said on Thursday it has downgraded Stellantis to "BBB" from "BBB+", citing weak margin prospects. S&P said it expects the price cuts implemented in North America and Europe late last year coupled with affordability concerns from buyers to limit the automaker's volume growth and margin expansion in those markets.