Stellantis CEO Antonio Filosa acknowledged that implementing a significant strategic transformation will require time before yielding positive results, as the global automotive giant, ranked fourth, reported second-quarter earnings below expectations on Thursday, leading to a decline in its stock value.
Earlier in May, Stellantis presented a $70 billion US turnaround plan to investors, which aims 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 on Thursday, Filosa emphasized the company’s key objectives, which include expanding market reach, reducing operational expenses, and enhancing product quality. However, progress in these areas has been gradual, with Filosa highlighting the need for patience, as addressing these challenges is not an immediate process.
Stellantis experienced a 6% sales growth in North America, driven by an 11% surge in sales of high-margin Ram pickup trucks and Jeep models, which Filosa has prioritized to regain market share in the U.S. The Chrysler Pacifica minivan, manufactured in Windsor, also saw a notable 7% sales increase year-over-year.
In contrast, revenue in Europe remained stagnant as Stellantis had to lower prices to compete against increasing pressure from Chinese automakers. Similar struggles were faced by fellow European car manufacturers Volkswagen and BMW, who also reported underwhelming quarterly results due to intensified competition from China, tariffs, and escalating expenses.
To counter the competitive threat posed by Chinese automakers like BYD and Chery, Filosa revealed plans to rely on Leapmotor, Stellantis’ Chinese joint-venture partner, whose sales in Europe surged nearly sixfold in the first half of 2026. Stellantis is actively developing new vehicle platforms for the European market to match the competitiveness levels seen in China.
Despite a significant year-over-year increase, Stellantis’ second-quarter adjusted earnings before interest and tax stood at $884 million US, falling short of analysts’ expectations. The adjusted operating income margin remained low at 1.8%, attributed to price adjustments in Europe, increased administrative and research costs, adverse currency fluctuations, and tariffs.
Since assuming the CEO role in June of the previous year, Filosa has concentrated on revitalizing sales volumes and reclaiming lost market share, banking on a rejuvenation of the core business to pave the way for a broader recovery. Stellantis has also scaled back its ambitions in electrification. The company’s shares hit a record low this month and have decreased by approximately 40% since Filosa’s appointment.
Stellantis maintains its full-year projections, anticipating mid-single-digit revenue growth and a low-single-digit adjusted operating income margin. Positive industrial free cash flow is anticipated in the following year, with estimated U.S. tariff expenses ranging from $1.15 billion to $1.38 billion US for the current year.
