Stellantis CEO Antonio Filosa has advised that the company’s significant strategic revamp will require time to yield positive results following the automaker’s below-expectation second-quarter performance, leading to a decline in its shares.
In May, Stellantis presented a $70 billion US revitalization plan to investors, outlining the launch of 60 new models by 2030 and the recovery of lost high-margin U.S. market share from 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 presence, cutting industrial expenses, and enhancing product quality. However, progress in these areas has been gradual. Filosa emphasized that addressing these challenges requires time and that the company is on the right track, executing diligently and swiftly.
Stellantis witnessed 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 has prioritized to regain U.S. market share. Notably, sales of the Windsor-built Chrysler Pacifica minivan soared by 7% year-over-year. Meanwhile, revenue in Europe remained stagnant as Stellantis had to reduce prices to combat mounting competition from Chinese automakers.
To counter the growing competition from Chinese rivals like BYD and Chery, Filosa mentioned that Stellantis will rely on its Chinese joint-venture partner Leapmotor, whose European sales surged nearly sixfold in the first half of 2026. Additionally, Stellantis is developing advanced vehicle platforms for Europe to match Chinese competitiveness levels.
The company reported second-quarter adjusted earnings before interest and taxes of $884 million US, a significant increase from the previous year but fell short of analysts’ expectations. The adjusted operating income margin remained low at 1.8%, attributed to price reductions in Europe, elevated administrative and R&D costs, adverse currency fluctuations, and tariffs.
Since assuming the CEO position in June last year, Filosa has concentrated on revitalizing sales volumes and reclaiming lost market share, anticipating that a rebound in the core business will pave the way for broader recovery. Stellantis has scaled back its electrification ambitions, with its shares hitting a record low and declining by approximately 40% since Filosa’s appointment.
Despite challenges, Stellantis maintained its full-year projections, including mid-single-digit percentage revenue growth, a low-single-digit adjusted operating income margin, and anticipated positive industrial free cash flow next year. The company also estimated U.S. tariff costs ranging from $1.15 billion to $1.38 billion US for the year.