Stellantis CEO Antonio Filosa emphasized that a significant strategic transformation will require patience to yield results after the world’s fourth-largest automaker reported second-quarter results below expectations on Thursday, causing a drop in its stock value.
Earlier in May, Stellantis proposed a $70 billion US restructuring plan to investors, aiming to introduce 60 new models by 2030 and recapture the high-margin U.S. market share lost during the tenure of previous CEO Carlos Tavares, who was removed in late 2024.
During a call with analysts, Filosa outlined the company’s key goals as expanding market reach, cutting operational expenses, and enhancing product quality. However, progress on these fronts has been gradual.
Filosa acknowledged the time needed to address these challenges, stating that quick solutions are not feasible. He assured reporters that Stellantis is on the right path, executing strategies diligently and promptly.
Stellantis observed a 6% sales increase in North America, driven partially by an 11% surge in sales of high-margin Ram pickup trucks and Jeep models, which Filosa prioritized to boost U.S. market share. Notably, the Chrysler Pacifica minivan, manufactured in Windsor, recorded a 7% sales growth year-over-year.
In contrast, revenue in Europe remained stagnant as Stellantis had to slash prices to compete against rising competition from Chinese automakers.
To counter the growing competition from Chinese brands like BYD and Chery, Filosa mentioned leveraging their Chinese partner, Leapmotor, whose sales in Europe surged nearly sixfold in the first half of 2026. Additionally, Stellantis is developing new vehicle platforms for the European market to match the competitiveness levels seen in China.
The company’s second-quarter adjusted earnings before interest and tax reached $884 million US, predominantly driven by robust revenue in North America. While this marked a significant increase from the previous year, it fell short of analysts’ expectations in a Reuters poll, leading to a 4.31% decline in Milan-listed shares.
Citi analysts highlighted the continued low operating income margin of 1.8%, attributing it to price reductions in Europe, increased administrative and R&D costs, adverse currency fluctuations, and tariffs.
Since assuming the role in June last year, Filosa has concentrated on revitalizing volumes and reclaiming lost market share to lay the groundwork for a broader turnaround. Stellantis has adjusted its electrification ambitions and seen a decline in its stock value by approximately 40% since Filosa’s appointment as CEO.
Despite the challenges, Stellantis maintained its full-year forecasts, including expectations for mid-single-digit percentage 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 costs between $1.15 billion and $1.38 billion US for the current year.
