Stellantis CEO Antonio Filosa has emphasized that the company’s significant strategic transformation will require time to yield results after the automaker, ranked as the world’s No. 4, reported second-quarter financial results below expectations on Thursday, leading to a drop in its stock value.
In May, Stellantis presented a $70 billion U.S. restructuring plan to investors, aiming to introduce 60 new vehicle models by 2030 and recapture the previously lost high-margin U.S. market share under the previous CEO, Carlos Tavares, who was removed in late 2024.
During a call with analysts, Filosa outlined three key priorities: expanding market reach, cutting operational expenses, and enhancing product quality. However, the company’s progress in these areas has been gradual.
Filosa stated, “Addressing these challenges requires time; they cannot be resolved overnight. We are making progress as planned, executing efficiently and swiftly.”
Stellantis witnessed a 6% increase in sales in North America, primarily driven by an 11% surge in sales of high-margin Ram pickup trucks and Jeep models, which Filosa has prioritized to regain market share in the U.S. This growth includes a 7% rise in year-over-year sales of the Windsor-manufactured Chrysler Pacifica minivan.
Revenue in Europe remained stagnant as Stellantis had to lower prices to fend off rising competition from Chinese automakers.
To counter the mounting competition from Chinese rivals like BYD and Chery, Filosa mentioned that Stellantis will rely on its Chinese joint-venture partner Leapmotor, whose sales in Europe surged nearly sixfold in the first half of 2026. Additionally, Stellantis is developing new vehicle platforms for Europe to match the level of competitiveness seen in Chinese vehicles.
The group reported second-quarter adjusted earnings before interest and tax of $884 million U.S., a significant increase from the previous year but fell short of analysts’ expectations in a Reuters survey. Consequently, Stellantis’ Milan-listed shares closed the day with a 4.31% decline.
Citi analysts highlighted that the adjusted operating income margin remained low at 1.8%, pointing to price reductions in Europe, increased administrative and R&D costs, unfavorable currency fluctuations, and tariffs.
Since assuming the CEO role in June last year, Filosa has concentrated on boosting volumes and reclaiming lost market share following a prolonged downturn, with the belief that reviving the core business will set the stage for a broader recovery.
Stellantis has downsized its electrification ambitions, with the group’s shares hitting a record low this month, down approximately 40% since Filosa’s appointment as CEO.
The company reaffirmed its full-year projections, including a mid-single-digit revenue growth and a low-single-digit adjusted operating income margin. Positive industrial free cash flow is not anticipated until the following year. Stellantis also estimated U.S. tariff expenses ranging from $1.15 billion to $1.38 billion U.S. for the year.
