Stellantis CEO Antonio Filosa cautioned that the company’s extensive strategic revamp will require time to yield results following the announcement of second-quarter results that fell below expectations, impacting its stock performance.
Earlier in May, Stellantis presented a $70 billion US restructuring plan to investors, aiming to introduce 60 new vehicle models by 2030 and recapture lost U.S. market share under the previous CEO Carlos Tavares. Filosa emphasized three key priorities during a call with analysts on Thursday: expanding market presence, cutting operational expenses, and enhancing product quality. Progress in these areas has been gradual, with Filosa acknowledging the time and effort needed to address these challenges effectively.
Stellantis witnessed a 6% sales uptick in North America, driven by an 11% surge in sales of high-margin Ram pickup trucks and Jeep models, which are focal points for Filosa in boosting U.S. market share. Notably, the Chrysler Pacifica minivan, manufactured in Windsor, saw a 7% increase in sales year-over-year. Conversely, revenue in Europe remained stagnant as Stellantis had to lower prices to combat increasing competition from Chinese automakers.
To counter the competitive threat posed by Chinese brands like BYD and Chery, Filosa disclosed plans to leverage its Chinese joint-venture partner Leapmotor, which experienced a substantial sales surge in Europe in the first half of 2026. Additionally, Stellantis is working on developing cutting-edge vehicle platforms for the European market to match the competitiveness standards set by Chinese automakers.
In the financial aspect, Stellantis reported second-quarter adjusted earnings before interest and tax of $884 million US, a significant improvement from the previous year but fell short of analysts’ expectations. The company’s Milan-listed shares closed down by 4.31% following the announcement.
Citi analysts highlighted that the adjusted operating income margin remained low at 1.8%, citing reasons such as price reductions in Europe, increased administrative and R&D costs, adverse currency fluctuations, and tariffs. Since assuming the CEO position in June last year, Filosa has concentrated on revitalizing sales volumes and regaining lost market share to pave the way for a broader corporate turnaround.
Despite the setbacks, Stellantis remains committed to its full-year projections, including mid-single-digit revenue growth and a low-single-digit adjusted operating income margin. The company anticipates achieving positive industrial free cash flow next year and estimates U.S. tariff expenses ranging from $1.15 billion to $1.38 billion US for the current fiscal year.