Stellantis CEO Antonio Filosa has emphasized that significant strategic changes will require time to yield results, following the automaker’s announcement of below-par second-quarter results, which led to a drop in its shares. The company outlined a $70 billion US turnaround plan in May, aiming to introduce 60 new models by 2030 and recapture lost high-margin U.S. market share. Filosa highlighted three key priorities during a recent call with analysts: expanding market reach, cutting industrial expenses, and enhancing product quality. Despite the ongoing efforts, progress in these areas has been gradual, with Filosa stating that addressing these challenges is a process that cannot be rushed.
Stellantis experienced a 6% sales increase in North America, driven by a notable 11% rise in sales of high-margin Ram pickup trucks and Jeep models, which Filosa has prioritized to bolster the company’s U.S. market share. Notably, the Windsor-built Chrysler Pacifica minivan saw a 7% sales surge year-over-year. Conversely, revenue in Europe remained stagnant as Stellantis had to lower prices to combat escalating competition from Chinese automakers. Other European car manufacturers like Volkswagen and BMW also reported disappointing quarterly results due to similar challenges from Chinese rivals, tariffs, and escalating operational expenses.
To counter the growing competition from Chinese automakers like BYD and Chery, Filosa revealed that Stellantis will rely on its Chinese joint-venture partner Leapmotor. This partnership has already led to a substantial sixfold increase in Leapmotor’s sales in Europe during the first half of 2026. Additionally, Stellantis is actively developing new vehicle platforms for the European market with a focus on achieving a competitive edge similar to Chinese standards, as stated by Filosa.
Despite a significant improvement compared to the previous year, Stellantis posted second-quarter adjusted earnings before interest and tax of $884 million US, falling short of analysts’ expectations in a Reuters poll. The company’s Milan-listed shares closed down by 4.31% following the announcement. Analysts from Citi highlighted that the adjusted operating income margin remained low at 1.8%, attributing this to various factors such as price reductions in Europe, increased administrative and R&D costs, currency fluctuations, and tariffs.
Since assuming the CEO role in June last year, Filosa has been focused on reviving sales volumes and reclaiming lost market share after a prolonged downturn. Stellantis has scaled back its electrification ambitions, with the company’s shares hitting a record low recently and dropping by approximately 40% since Filosa took the helm. Looking ahead, Stellantis maintains 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 coming year. The company also estimates U.S. tariff costs ranging from $1.15 billion to $1.38 billion US for the current year.