Stellantis CEO Antonio Filosa has emphasized that the company’s significant strategic reorganization will require time to yield positive results. This statement comes after the automaker, ranked fourth globally, released second-quarter results that fell below expectations, causing a decline in its shares.
In a move to regain lost high-margin U.S. market share from previous CEO Carlos Tavares, Stellantis unveiled a $70 billion turnaround plan earlier this year, aiming to introduce 60 new vehicle models by 2030. Filosa outlined three key priorities to analysts: expanding market presence, cutting industrial expenses, and enhancing product quality. However, progress in these areas has been gradual.
Filosa acknowledged the challenges faced by the company, stating that addressing them would not happen overnight. He assured reporters that Stellantis is on track, executing its strategies efficiently and promptly.
The company experienced a 6% sales increase in North America, driven by strong performances from high-margin Ram pickup trucks and Jeep models, which Filosa has targeted to boost U.S. market share. Notably, sales of the Windsor-built Chrysler Pacifica minivan surged by 7% year-over-year. Revenue in Europe remained stagnant as Stellantis had to lower prices to combat rising competition from Chinese automakers.
To counter the growing competition from Chinese rivals like BYD and Chery, Stellantis plans to leverage its Chinese joint-venture partner Leapmotor, whose sales in Europe surged nearly sixfold in the first half of 2026. Filosa also revealed plans to develop new vehicle platforms for the European market, aiming to match the competitiveness seen in Chinese offerings.
Despite posting a second-quarter adjusted earnings before interest and tax of $884 million, a significant increase from the previous year, Stellantis fell short of analysts’ expectations. This resulted in a 4.31% decrease in its Milan-listed shares.
Citi analysts highlighted that the company’s adjusted operating income margin remained low at 1.8%, attributing this to factors 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 volumes and reclaiming lost market share to lay the groundwork for a broader company turnaround.
Stellantis has scaled back its ambitions for electrification, with its shares hitting a record low recently and dropping by approximately 40% since Filosa assumed leadership.
In Europe, second-quarter revenue surged by 13% year-on-year, driven by a 32% increase in North American revenue, buoyed by successful models like the Jeep Grand Wagoneer and Ram 1500 truck. However, Fabio Caldato, a fund manager at Stellantis investor AcomeA Sgr, raised concerns about the company’s need to address internal issues before introducing new high-margin models.
Stellantis affirmed its full-year projections, including expectations of mid-single-digit revenue growth, a low-single-digit adjusted operating income margin, and the anticipation of positive industrial free cash flow in the coming year. The company also forecasted U.S. tariff costs ranging from $1.15 billion to $1.38 billion for the current year.