Stellantis CEO Antonio Filosa has cautioned that significant strategic changes will require time to yield results, following the automaker’s below-par second-quarter performance which led to a decline in its shares. In an effort to recover from lost U.S. market share under the previous CEO, Carlos Tavares, Stellantis unveiled a $70 billion turnaround plan in May, aiming to introduce 60 new models by 2030.
During a call with analysts, Filosa highlighted three key priorities: expanding market reach, cutting industrial expenses, and enhancing product quality. However, progress in these areas has been gradual, with Filosa acknowledging the need for time to address these challenges effectively. Despite the slow progress, Filosa assured reporters that the company is on track and executing its strategies promptly.
Stellantis witnessed a 6% sales increase in North America, driven by an 11% surge in sales of high-margin Ram pickup trucks and Jeep models, which are focal points for boosting market share in the U.S. The Windsor-produced Chrysler Pacifica minivan also recorded a notable 7% sales growth year-over-year. On the other hand, revenue in Europe remained flat as Stellantis had to lower prices to compete with emerging Chinese automakers.
To counter the growing competition from Chinese brands like BYD and Chery, Stellantis plans to leverage its Chinese joint-venture partner, Leapmotor, whose European sales escalated nearly sixfold in the first half of 2026. Filosa emphasized that Stellantis is developing new vehicle platforms for Europe with a focus on achieving a competitive edge similar to Chinese standards.
Despite a significant increase in adjusted earnings before interest and tax to $884 million US in the second quarter, surpassing last year’s figures threefold, the results fell short of analysts’ expectations. Stellantis’ Milan-listed shares closed down by 4.31% post-announcement. Citi analysts noted that the adjusted operating income margin remained low at 1.8%, attributing it to various factors like price adjustments in Europe, increased administrative and R&D expenses, unfavorable currency fluctuations, and tariffs.
Since assuming the CEO role in June last year, Filosa has concentrated on revitalizing volumes and recapturing lost market share, banking on a core business recovery to spearhead a broader transformation. Stellantis has reined in its electrification ambitions and witnessed a drop of about 40% in its shares since Filosa took the helm, touching a record low recently.
The company’s second-quarter revenue surged by 13% year-on-year, primarily driven by a 32% growth in North America propelled by models like Jeep Grand Wagoneer and Ram 1500 truck. While the North American revenue performance was commendable, Fabio Caldato, a fund manager at Stellantis investor AcomeA Sgr, pointed out that it was partly supported by dealers increasing their inventory.
Stellantis has reaffirmed its full-year projections, including mid-single-digit revenue growth and a low-single-digit adjusted operating income margin. The company anticipates positive industrial free cash flow to materialize in the next year and expects U.S. tariff costs between $1.15 billion and $1.38 billion for the current year.