European carmaker Stellantis on Monday joined bigger rival Volkswagen and others in warning about the worsening outlook for auto demand and rising costs, wiping billions of euros off the sector's market value.

Europe's auto makers face challenges as electric cars stall, overall sales weaken, profits fall, plant closures loom, and challenges mount from China’s cheaper EVs.

Shares in Chrysler parent Stellantis plunged almost 14% in Milan Monday after the Italian-American carmaker slashed its forecasts for full-year profitability and cash flow, citing weaker global sales and increased competition from Chinese rivals.

The struggling maker of Jeep and Ram is looking for a new CEO to succeed Carlos Taveres, who is under fire from US dealers and the United Auto Workers union after a dismal first-half financial performance.