Stellantis CEO Antonio Filosa acknowledged that the company’s significant strategic transformation will require time to yield positive outcomes, following the automaker’s below-par second-quarter results announcement on Thursday, leading to a decline in its stock value.
Earlier in May, Stellantis presented a $70 billion U.S. revival strategy to investors, outlining plans for the introduction of 60 new models by 2030 and the regaining of 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 emphasized the company’s focus on three key priorities: enhancing market reach, reducing operational expenses, and enhancing product quality. However, progress in these areas has been gradual.
Filosa emphasized the need for patience, stating that such challenges cannot be resolved overnight. He reassured reporters that the company is on track, executing plans efficiently and expeditiously.
Stellantis witnessed a 6% growth in sales in North America, attributed in part to an 11% surge in sales of high-margin Ram pickup trucks and Jeep models, which Filosa has prioritized to enhance the company’s U.S. market share. Notably, sales of the Windsor-manufactured Chrysler Pacifica minivan saw a 7% increase year-over-year.
On the other hand, revenue in Europe remained stagnant as Stellantis had to slash prices to counter increasing competition from Chinese automakers.
In response to the mounting competition from Chinese rivals like BYD and Chery, Filosa disclosed plans for Stellantis to rely on its Chinese joint-venture partner Leapmotor, which witnessed a nearly sixfold sales increase in Europe during the first half of 2026. Additionally, Stellantis is in the process of developing new vehicle platforms for Europe that will match the competitiveness levels seen in China.
Regarding financial performance, the group reported second-quarter adjusted earnings before interest and tax of $884 million, primarily driven by robust revenue in North America. However, this figure fell short of analysts’ expectations.
Citi analysts highlighted that the adjusted operating income margin remained low at 1.8%, attributing this to price reductions in Europe, higher administrative and R&D costs, adverse currency fluctuations, and tariffs.
Since assuming the role in June of the previous year, Filosa has concentrated on revitalizing sales volumes and reclaiming lost market share, with the belief that a rebound in the core business will serve as the foundation for a broader turnaround. Stellantis has also scaled back its electrification ambitions.
Despite challenges, Stellantis affirmed its full-year outlook, maintaining forecasts for 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 coming year. The company also projected U.S. tariff costs ranging from $1.15 billion to $1.38 billion for the year.
