Stellantis CEO Antonio Filosa cautioned that the strategic changes underway will require time to yield positive results after the world’s fourth-largest automaker reported lower-than-anticipated second-quarter results on Thursday, leading to a decline in its stock value.
In May, Stellantis presented a $70 billion US transformation plan to investors, aiming to introduce 60 new models by 2030 and recapture the previously lost high-margin U.S. market share under Filosa’s predecessor, Carlos Tavares, who was removed 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.
Filosa informed reporters that addressing these challenges requires time and cannot be swiftly resolved. He assured that the company is on schedule, executing diligently and expediently.
Stellantis observed a 6% increase in sales in North America, driven partially by an 11% growth in high-margin Ram pickup trucks and Jeep models that Filosa has emphasized to enhance U.S. market share. Notably, sales of the Windsor-built Chrysler Pacifica minivan surged by 7% year-over-year.
Revenue in Europe remained flat as Stellantis had to reduce prices to fend off increasing competition from Chinese automakers. Similarly, European automakers Volkswagen and BMW faced disappointing quarterly results due to pressure from Chinese rivals, tariffs, and rising expenses.
To counter the competition from Chinese brands like BYD and Chery, Filosa mentioned that Stellantis will rely on its Chinese joint-venture partner Leapmotor, which witnessed a nearly sixfold sales increase in Europe during the first half of 2026. Additionally, Stellantis is developing new vehicle platforms for Europe to match the competitiveness level seen in China.
Stellantis reported second-quarter adjusted earnings before interest and tax of $884 million US, primarily boosted by robust revenue from North America. Although this figure was more than triple the previous year, it fell short of analysts’ expectations.
Citi analysts noted that the adjusted operating income margin remained low at 1.8%, attributing this to price reductions in Europe, elevated administrative and R&D costs, adverse currency fluctuations, and tariffs. Since assuming the role in June last year, Filosa has concentrated on reviving volumes and regaining lost market share, with hopes that a rebound in the core business will lay the groundwork for a broader recovery.
The company has scaled back its electrification ambitions, with its shares hitting a record low this month and declining approximately 40% since Filosa assumed the CEO position.
Stellantis stood by its full-year projections, including mid-single-digit percentage revenue growth, a low-single-digit adjusted operating income margin, and an expectation of positive industrial free cash flow next year. The company also anticipated U.S. tariff expenses ranging from $1.15 billion to $1.38 billion US for the current year.
