Stellantis CEO Antonio Filosa cautioned that the significant strategic revamp would require time to yield results following the world’s fourth-largest automaker’s announcement of weaker-than-anticipated second-quarter financials on Thursday, leading to a dip in its shares.
In May, Stellantis presented a $70 billion U.S. restructuring plan to investors, outlining the launch of 60 new models by 2030 and aiming to regain the high-margin U.S. market share lost during Filosa’s predecessor Carlos Tavares’ tenure, which ended in late 2024.
During a call with analysts on Thursday, Filosa emphasized the company’s focus on three key priorities: expanding market reach, cutting industrial expenses, and enhancing product quality. However, progress in these areas has been gradual.
“We must allow time for these endeavors…they are not challenges to be resolved overnight,” Filosa stated to reporters on Thursday. “We are on the right track…executing diligently and swiftly.”
Stellantis witnessed a 6% uptick in sales in North America, driven partly by an 11% surge in sales of high-margin Ram pickup trucks and Jeep models, which Filosa has specifically targeted to elevate U.S. market share. This included a 7% sales increase year-over-year for the Windsor-assembled Chrysler Pacifica minivan.
Meanwhile, revenue in Europe remained stable as Stellantis had to reduce prices to counter the mounting competition from Chinese automakers.
In response to the escalating rivalry from Chinese manufacturers like BYD and Chery, Filosa disclosed plans to rely on its Chinese joint-venture partner Leapmotor, whose sales in Europe soared nearly sixfold in the first half of 2026. Additionally, Stellantis is developing new vehicle platforms for Europe designed to match Chinese competitiveness levels.
The group reported second-quarter adjusted earnings before interest and tax of $884 million U.S. on Thursday, primarily driven by robust revenue in North America. While this figure was more than triple the amount from a year ago, it fell short of analysts’ expectations in a Reuters poll.
Citi analysts highlighted that the adjusted operating income margin remained low at 1.8%, attributing it to price adjustments in Europe, increased 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 after a prolonged downturn, banking on a core business recovery to pave the way for broader improvements. Stellantis has also scaled down its electrification ambitions, with its shares hitting a record low this month, down roughly 40% since Filosa’s appointment.
Stellantis’ second-quarter revenue surged by 13% year-on-year, with a 32% spike in North American sales driven by popular models like the Jeep Grand Wagoneer and Ram 1500 truck. However, Fabio Caldato, a fund manager at Stellantis investor AcomeA Sgr, noted that the North American revenue boost was partly due to dealers increasing inventory.
Looking ahead, Stellantis reaffirmed its full-year projections, including mid-single-digit percentage revenue growth and a low-single-digit adjusted operating income margin. Positive industrial free cash flow is not anticipated until the following year. The company also predicted U.S. tariff costs between $1.15 billion and $1.38 billion U.S. for the current year.