Stellantis CEO, Antonio Filosa, cautioned that the company’s significant strategic revamp would require time to yield positive results following the announcement of lower-than-anticipated second-quarter financial results, which led to a decline in the company’s stock value. In May, Stellantis unveiled a $70 billion turnaround plan aiming to introduce 60 new vehicle models by 2030 and recapture the previously lost high-margin U.S. market share under the leadership of Carlos Tavares, the former CEO who was removed in late 2024.
During a call with analysts, Filosa outlined the company’s focus on enhancing market coverage, reducing industrial expenses, and elevating quality standards. However, progress on these fronts has been gradual, as Filosa emphasized that addressing these challenges requires time and cannot be resolved instantly. He assured reporters that Stellantis is on course, executing operations efficiently and swiftly.
Stellantis experienced a 6% sales rise 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 U.S. market share. Notably, the Chrysler Pacifica minivan, produced in Windsor, saw a 7% increase in sales compared to the previous year. Meanwhile, revenue in Europe remained stagnant as Stellantis had to decrease prices to combat mounting competition from Chinese automakers.
In response to the increasing competition from Chinese rivals like BYD and Chery, Filosa revealed plans to leverage its Chinese joint-venture partner, Leapmotor, whose sales in Europe surged nearly sixfold in the first half of 2026. Stellantis is also developing new vehicle platforms tailored for the European market to match the competitive standards set by Chinese manufacturers.
Despite posting second-quarter adjusted earnings of $884 million US, a significant increase from the previous year, the figure fell short of analysts’ expectations, leading to a 4.31% decline in the company’s Milan-listed shares. Citi analysts noted that the adjusted operating income margin remained low at 1.8%, attributing the shortfall to price reductions in Europe, increased administrative and R&D costs, unfavorable currency fluctuations, and tariffs.
Since assuming the CEO position in June last year, Filosa has concentrated on revitalizing sales volumes and reclaiming lost market share, anticipating that the recovery in core business operations will lay the groundwork for a broader turnaround. Stellantis has also scaled back its electrification ambitions, as the group’s shares hit a record low and have plummeted approximately 40% since Filosa’s appointment.
Stellantis reaffirmed its full-year projections, including mid-single-digit revenue growth, a low-single-digit adjusted operating income margin, and the expectation of positive industrial free cash flow in the upcoming year. Additionally, the company estimated U.S. tariff costs ranging between $1.15 billion and $1.38 billion for the current year.