Stellantis CEO Antonio Filosa has indicated that the company’s significant strategic revamp will require time to yield results after the automotive giant unveiled second-quarter figures that fell below expectations, causing a decline in its stock value.
In a bid to bounce back, Stellantis unveiled a $70 billion US transformation plan earlier this year, aiming to introduce 60 new vehicle models by 2030 and recapture lost U.S. market share. Filosa emphasized during a recent analyst call that the firm is concentrating on expanding market reach, cutting operational expenses, and enhancing product quality. However, progress on these fronts has been gradual.
Filosa acknowledged the challenges, stating, “We need time… these are not issues that can be resolved overnight.” He reassured reporters that the company is on the right path, executing strategies efficiently and swiftly.
Notably, Stellantis witnessed a 6% sales upturn in North America, attributed partly to an 11% surge in sales of high-margin Ram pickups and Jeep models. The Windsor-manufactured Chrysler Pacifica minivan also saw a 7% increase in sales year-over-year. On the other hand, revenue in Europe remained flat as Stellantis had to lower prices to combat rising competition from Chinese automakers.
To counter the growing competition from Chinese brands like BYD and Chery, Filosa disclosed plans to leverage its Chinese joint-venture partner, Leapmotor, whose European sales skyrocketed nearly sixfold in the first half of 2026. Stellantis is additionally working on new vehicle platforms tailored for the European market to match the competitiveness seen in China.
Despite posting adjusted earnings before interest and tax of $884 million US in the second quarter, primarily driven by robust North American revenue, the figure fell short of analysts’ expectations. The company’s Milan-listed shares closed down by 4.31%.
Citi analysts highlighted that Stellantis’ adjusted operating income margin remained low at 1.8%, citing price reductions in Europe, increased administrative and R&D costs, adverse currency fluctuations, and tariffs as contributing factors. Since assuming the CEO role last year, Filosa has been dedicated to revitalizing sales volumes and reclaiming market share, banking on these efforts to pave the way for a broader recovery.
Furthermore, Stellantis has scaled back its electrification ambitions, with its shares hitting a record low and dropping around 40% since Filosa took the helm.
Despite the challenges, the company reported a 13% year-on-year revenue increase in the second quarter, driven by a 32% surge in North American revenue fueled by successful models like the Jeep Grand Wagoneer and Ram 1500 truck. However, Fabio Caldato, a fund manager at Stellantis investor AcomeA Sgr, cautioned that the North American revenue growth might be inflated by dealers increasing their stock levels.
Stellantis maintained its full-year projections, anticipating mid-single-digit percentage revenue growth and a low-single-digit adjusted operating income margin. The company does not foresee positive industrial free cash flow until the following year and anticipates U.S. tariff costs ranging from $1.15 billion to $1.38 billion US in 2026.