Stellantis CEO Antonio Filosa emphasized that the company’s significant strategic transformation would require time to yield positive results, following the announcement of lower-than-anticipated second-quarter financial performance, causing a decline in its shares. In a bid to recover its previously lost high-margin U.S. market share, Stellantis unveiled a $70 billion turnaround plan in May, promising 60 new models by 2030.
During a recent call with analysts, Filosa highlighted the company’s key focus areas, which include expanding market reach, cutting industrial expenses, and enhancing product quality. Despite ongoing efforts, progress in these areas has been gradual, as Filosa acknowledged the complexities involved in addressing these challenges swiftly.
Stellantis witnessed a 6% sales increase in North America, boosted by a notable 11% surge in sales of Ram pickup trucks and Jeep vehicles, the models prioritized by Filosa to reclaim market share in the U.S. The Windsor-manufactured Chrysler Pacifica minivan also saw a 7% sales growth year-over-year. However, revenue in Europe remained flat, as Stellantis had to reduce prices to compete against the rising threat from Chinese automakers.
To counter the 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 mentioned the development of new vehicle platforms for the European market, aiming to achieve a level of competitiveness comparable to Chinese standards.
Despite a significant increase in second-quarter adjusted earnings before interest and tax to $884 million US, primarily driven by strong North American revenue, the figure fell short of analysts’ expectations, leading to a 4.31% drop in Stellantis’ Milan-listed shares. Citi analysts highlighted the company’s low adjusted operating income margin of 1.8%, attributing it to various factors such as price reductions in Europe, increased administrative and R&D costs, unfavorable currency fluctuations, and tariffs.
Since assuming leadership in June last year, Filosa has been concentrating on revitalizing sales volumes and recapturing lost market share, aiming for a holistic recovery in the core business to lay the foundation for a broader turnaround strategy. Stellantis has scaled back its electrification ambitions, with its shares hitting a record low recently, marking a 40% decline since Filosa’s appointment as CEO.
Amidst these challenges, Stellantis maintained its full-year outlook, projecting mid-single-digit revenue growth, a low-single-digit adjusted operating income margin, and anticipating positive industrial free cash flow in the following year. The company also estimated U.S. tariff expenses ranging from $1.15 billion to $1.38 billion for the current year.