Stellantis CEO Antonio Filosa has emphasized that the company’s significant strategic reorganization will require time to yield results. This statement comes after the automaker, ranked fourth globally, posted second-quarter results below expectations on Thursday, causing a decline in its stock value.
Stellantis presented a $70 billion US transformation plan to investors in May, aiming to introduce 60 new models by 2030 and recapture the high-margin U.S. market share lost during the tenure of former CEO Carlos Tavares, who was removed in late 2024. During a call with analysts, Filosa outlined the company’s key focuses on expanding market reach, cutting industrial expenses, and enhancing product quality. However, progress in these areas has been gradual.
Filosa acknowledged the challenges ahead, highlighting that addressing these issues is a long-term endeavor rather than a quick fix. He assured reporters that Stellantis is on the right path, executing its plans efficiently and expeditiously to achieve its goals.
Notably, Stellantis observed a 6% sales increase in North America, driven partly by an 11% surge in sales of high-margin Ram pickup trucks and Jeep models, which Filosa prioritized to regain market share in the U.S. This growth included a 7% rise in year-over-year sales for the Chrysler Pacifica minivan built in Windsor.
Revenue in Europe remained stagnant as Stellantis had to lower prices to combat rising competition from Chinese automakers. Similar struggles were faced by fellow European car manufacturers Volkswagen and BMW, who also disclosed disappointing quarterly results due to Chinese competition, tariffs, and escalating expenses.
To counter the threat posed by Chinese rivals like BYD and Chery, Filosa mentioned that Stellantis will leverage its Chinese joint-venture partner, Leapmotor, whose sales in Europe surged nearly sixfold in the first half of 2026. Moreover, Stellantis is developing advanced vehicle platforms for Europe to match the competitive standards set by Chinese automakers.
Regarding financial performance, Stellantis reported second-quarter adjusted earnings before interest and tax of $884 million US, driven by robust revenue in North America. While this figure more than tripled compared to the previous year, it fell short of analysts’ expectations. Consequently, the company’s Milan-listed shares closed the day with a 4.31% decline.
Analysts from Citi noted that the adjusted operating income margin remained low at 1.8%, attributing this to price reductions in Europe, increased administrative and research and development costs, adverse currency fluctuations, and tariffs. Since assuming leadership in June the previous year, Filosa has concentrated on boosting sales volumes and reclaiming lost market share to lay a foundation for a comprehensive recovery.
Additionally, Stellantis has scaled back its plans for electrification. The company’s shares hit a record low this month, dropping approximately 40% since Filosa assumed the CEO position.
Stellantis experienced a 13% year-on-year revenue increase in the second quarter, with a notable 32% growth in North America driven by strong sales of models such as the Jeep Grand Wagoneer and Ram 1500 truck. Fabio Caldato, a fund manager at Stellantis investor AcomeA Sgr, commended the performance of North American revenue while cautioning that it was somewhat influenced by dealers stocking up.
The company maintained its full-year forecasts, expecting mid-single-digit percentage revenue growth and a low-single-digit adjusted operating income margin. Positive industrial free cash flow is projected for the next year, with anticipated U.S. tariff costs ranging from $1.15 billion to $1.38 billion US for the current year.