Stellantis CEO Antonio Filosa emphasized that the company’s significant strategic transformation will require time to yield results following the announcement of underwhelming second-quarter financial results on Thursday, leading to a decline in its stock value.
In a presentation made in May, Stellantis outlined a $70 billion US revitalization plan to shareholders, entailing the introduction of 60 new vehicle models by 2030 and reclaiming the profitable U.S. market share that had been lost during the tenure of former CEO Carlos Tavares, who was removed in late 2024.
During a call with analysts on Thursday, Filosa highlighted the company’s primary objectives, which include expanding market presence, cutting operational expenses, and enhancing product quality. However, progress in these areas has been gradual.
Filosa informed reporters that addressing these challenges will require time and cannot be swiftly resolved. He affirmed that the company is on schedule and executing its strategies efficiently and promptly.
Stellantis witnessed a 6% sales increase in North America, primarily driven by an 11% surge in sales of high-margin Ram pickup trucks and Jeep models, which Filosa prioritized to regain U.S. market share. Notably, sales of the Windsor-manufactured Chrysler Pacifica minivan rose by 7% year-over-year.
Revenue in the European market remained stagnant as Stellantis had to lower prices to combat escalating competition from Chinese automakers.
In response to the intensified competition from Chinese rivals like BYD and Chery, Filosa mentioned that Stellantis will leverage its Chinese joint-venture partner, Leapmotor, whose European sales soared nearly sixfold in the first half of 2026. Additionally, Stellantis is developing cutting-edge vehicle platforms for Europe to match the competitiveness level seen in Chinese markets.
Addressing margin concerns, the group reported adjusted second-quarter earnings before interest and taxes of $884 million US, driven by robust revenue in North America. Despite this increase from the previous year, the figure fell short of analysts’ expectations.
Citi analysts pointed out that the adjusted operating income margin remained low at 1.8%, citing price reductions in Europe, higher administrative and R&D costs, unfavorable currency fluctuations, and tariffs as contributing factors.
Since assuming leadership in June last year, Filosa has concentrated on revitalizing sales volumes and regaining lost market share, anticipating that a resurgence in the core business will serve as the cornerstone for a broader recovery. Stellantis has also scaled back its electrification ambitions.
Stellantis affirmed its full-year projections, including a mid-single-digit percentage growth in revenue and a low-single-digit adjusted operating income margin. Positive industrial free cash flow is anticipated in the following year, with projected U.S. tariff costs ranging from $1.15 billion to $1.38 billion US for the current year.