Stellantis CEO Antonio Filosa cautioned that the significant strategic revamp would require time to yield positive results after the fourth-largest automaker globally reported second-quarter results below expectations on Thursday, causing a decline in its shares. In May, Stellantis presented a $70 billion U.S. turnaround plan to investors, outlining the launch of 60 new models by 2030 and regaining lost high-margin U.S. market share. Filosa highlighted three key priorities during an analyst briefing: expanding market reach, cutting industrial expenses, and enhancing product quality. However, the company’s advancements in these areas have been gradual. Filosa emphasized that addressing these challenges is a process that cannot be resolved overnight, expressing confidence in the ongoing execution pace.
Stellantis witnessed a 6% sales increase in North America, primarily driven by an 11% surge in lucrative Ram pickup trucks and Jeep models, which Filosa prioritized to boost U.S. market share. Notably, the Windsor-manufactured Chrysler Pacifica minivan recorded a 7% sales growth year-over-year. In contrast, revenue in Europe remained stagnant as Stellantis had to lower prices to counter intensifying competition from Chinese automakers. Similarly, European automakers Volkswagen and BMW also faced disappointing quarterly results due to challenges like Chinese competition, tariffs, and escalating expenses.
To combat the rising competition from Chinese counterparts such as BYD and Chery, Filosa disclosed plans to leverage its Chinese joint-venture partner, Leapmotor, which experienced a nearly sixfold sales increase in Europe in the initial six months of 2026. Stellantis is actively developing new vehicle platforms for Europe that aim to match Chinese standards of competitiveness.
Regarding financial performance, Stellantis reported second-quarter adjusted earnings before interest and taxes of $884 million U.S., driven by robust revenue in North America. Although this figure was more than triple the previous year’s value, it fell short of analysts’ expectations. Consequently, the company’s Milan-listed shares closed the day with a 4.31% decline. Citi analysts highlighted that the adjusted operating income margin remained low at 1.8%, attributing this to factors like price reductions in Europe, increased administrative and research and development expenses, adverse currency fluctuations, and tariffs. Since assuming leadership in June last year, Filosa has been focused on revitalizing volumes and reclaiming lost market share, banking on a core business recovery to pave the way for a broader turnaround.
Stellantis has recalibrated its electrification ambitions and witnessed a significant drop in its shares since Filosa assumed the CEO role. The company remains committed to its full-year projections, anticipating mid-single-digit percentage revenue growth and a low-single-digit adjusted operating income margin. Positive industrial free cash flow is not anticipated until the following year. Stellantis also estimates U.S. tariff costs ranging from $1.15 billion to $1.38 billion U.S. for the current year.