Stellantis CEO Antonio Filosa has acknowledged that significant changes in strategy will require time to yield positive results following the announcement of weaker-than-anticipated second-quarter financial results, causing a decline in the company’s shares.
In an effort to reposition the company, Stellantis presented a $70 billion US recovery plan to investors in May, which involves introducing 60 new vehicle models by 2030 and reclaiming lost market share in the high-margin U.S. sector. Filosa, who succeeded his predecessor Carlos Tavares in late 2024, emphasized three key priorities during a recent call with analysts: expanding market reach, cutting industrial expenses, and enhancing product quality. Despite ongoing efforts, progress in these areas has been gradual.
Filosa highlighted the necessity for patience in addressing these challenges, stressing that they cannot be resolved overnight. He assured reporters of the company’s commitment to executing its strategies efficiently and promptly.
Stellantis experienced a 6% sales increase in North America, driven by a notable 11% surge in sales of high-margin Ram pickup trucks and Jeep models, which are focal points for Filosa in regaining market share in the U.S. The Chrysler Pacifica minivan, manufactured in Windsor, also saw a significant 7% sales growth year-over-year. However, revenue in Europe remained stagnant as Stellantis had to reduce prices to compete against rising competition from Chinese automakers.
In response to the rise of Chinese competitors such as BYD and Chery, Stellantis plans to leverage its partnership with Chinese joint-venture partner Leapmotor, which witnessed a nearly sixfold increase in European sales in the first half of 2026. Additionally, Filosa mentioned the development of new vehicle platforms in Europe that aim to match the competitiveness levels seen in the Chinese market.
Despite a substantial increase in second-quarter adjusted earnings before interest and tax to $884 million US, primarily driven by strong revenue in North America, the results fell short of analysts’ expectations. Stellantis’ Milan-listed shares closed down by 4.31% following the announcement.
Citi analysts noted that the adjusted operating income margin remained low at 1.8%, attributing it to price reductions in Europe, higher administrative and R&D costs, currency fluctuations, and tariffs. Filosa’s focus since assuming the CEO position has been on revitalizing volumes and recapturing lost market share to lay the groundwork for a broader recovery. The company has also scaled back its ambitions in electrification.
Stellantis remains committed to its full-year projections, anticipating mid-single-digit revenue growth and a low-single-digit adjusted operating income margin. Positive industrial free cash flow is not expected until the following year. The company also foresees U.S. tariff costs ranging from $1.15 billion to $1.38 billion US for the current year.