Stellantis’ CEO, Antonio Filosa, emphasized that the company’s significant strategic transformation will require time to yield results following the announcement of weaker-than-anticipated second-quarter financial outcomes, leading to a decline in its stock value. In a recent briefing, Filosa outlined the $70 billion US turnaround plan presented to investors in May, which includes the introduction of 60 new vehicle models by 2030 and the reclamation of lost high-margin U.S. market share from the previous CEO, Carlos Tavares.
During a conference call with analysts, Filosa highlighted three key priorities for the company: expanding market reach, reducing operational costs, and enhancing product quality. Despite the gradual advancement in these areas, Filosa stressed that addressing these challenges is a time-consuming process that cannot be resolved overnight. He reassured reporters of the company’s progress and commitment to executing the strategic plan efficiently and swiftly.
Stellantis witnessed a 6% sales escalation in North America, driven by an 11% surge in sales of high-margin Ram pickup trucks and Jeep models, which Filosa has prioritized to boost market share in the U.S. Specifically, sales of the Windsor-manufactured Chrysler Pacifica minivan soared by 7% year-over-year. In contrast, revenue in Europe remained stagnant as Stellantis had to slash prices to counter mounting competition from Chinese automotive manufacturers.
To counter the competitive threat posed by Chinese rivals like BYD and Chery, Filosa revealed plans to leverage the company’s Chinese joint-venture partner, Leapmotor, whose European sales surged nearly sixfold in the first half of 2026. Additionally, Stellantis is developing cutting-edge vehicle platforms for the European market that aim to match the competitiveness levels seen in China.
Despite reporting a second-quarter adjusted EBIT of $884 million US, a substantial increase compared to the previous year, the figure fell short of analysts’ expectations. The company’s Milan-listed shares closed down by 4.31% following the announcement. Citi analysts highlighted the persistently low adjusted operating income margin of 1.8%, attributing it to price reductions in Europe, heightened administrative and R&D costs, adverse currency fluctuations, and tariffs.
Since assuming his role in June of the previous year, Filosa has concentrated on revitalizing sales volumes and reclaiming lost market share, anticipating that a resurgence in the core business will lay the groundwork for a broader recovery. Stellantis has recalibrated its electrification ambitions, with the company’s shares plummeting to a record low and declining by approximately 40% since Filosa assumed the CEO position.
In terms of revenue, Stellantis witnessed a 13% year-over-year increase in the second quarter, fueled by a 32% surge in North American sales, driven by popular models such as the Jeep Grand Wagoneer and Ram 1500 truck. While Fabio Caldato, a fund manager at Stellantis investor AcomeA Sgr, acknowledged the strong performance in North America, he noted that it was partly supported by dealers bolstering inventory.
Looking ahead, Stellantis maintained its full-year projections, including expectations of mid-single-digit percentage revenue growth and a low-single-digit adjusted operating income margin. The company does not anticipate 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 for the current year.