Stellantis CEO Antonio Filosa has emphasized that the company’s significant strategic revamp will require patience to yield positive results, following the announcement of lower-than-anticipated second-quarter financial performance on Thursday, leading to a decline in its stock value. In a presentation made in May, Stellantis proposed a $70 billion transformation plan aimed at introducing 60 new vehicle models by 2030 and reclaiming the profitable U.S. market share that had been lost during the tenure of former CEO Carlos Tavares, who was removed in late 2024.
During a conference call with analysts on Thursday, Filosa outlined the firm’s key focuses, which include expanding market reach, cutting down on production costs, and enhancing product quality. Despite the company’s dedicated efforts in these areas, progress has been gradual. Filosa informed reporters that addressing these challenges is a gradual process that cannot be resolved overnight, emphasizing that Stellantis is on track with its execution pace.
Stellantis recorded a 6% surge in sales in North America, driven by an 11% spike in sales of high-margin Ram pickup trucks and Jeep models – products that Filosa has prioritized to regain market share in the U.S. Notably, the Windsor-manufactured Chrysler Pacifica minivan also experienced a notable 7% sales growth year-over-year. Conversely, revenue in Europe remained stagnant as Stellantis had to reduce prices to counter increasing competition from Chinese automakers.
Addressing the competition from Chinese rivals such as BYD and Chery, Filosa mentioned that Stellantis will leverage its partnership with Chinese joint-venture partner Leapmotor. Leapmotor observed a nearly sixfold increase in sales in Europe during the initial half of 2026. Stellantis is actively developing new vehicle platforms tailored for the European market, aiming to achieve a competitive edge similar to that of Chinese counterparts.
In terms of financial performance, the Franco-Italian automaker reported second-quarter adjusted earnings before interest and tax of $884 million US, largely bolstered by robust revenues in North America. However, this figure fell short of analysts’ expectations. Consequently, the company’s Milan-listed shares closed down by 4.31% on that day. Citi analysts highlighted that the adjusted operating income margin remained low at 1.8%, attributing this to various factors such as price adjustments in Europe, increased administrative and R&D costs, unfavorable currency fluctuations, and tariffs.
Since assuming his role in June last year, Filosa has concentrated on reviving sales volumes and regaining lost market share, envisioning a recovery in the core business as the cornerstone for broader organizational improvement. Stellantis has also scaled back its electrification plans. The company’s shares hit a record low and have declined by about 40% since Filosa took over as CEO.
Looking ahead, Stellantis remains committed to its full-year projections, which include expectations of mid-single-digit percentage revenue growth, a low-single-digit adjusted operating income margin, and the anticipation of positive industrial free cash flow in the following year. The company estimates U.S. tariff expenses ranging between $1.15 billion and $1.38 billion US for the current fiscal year.