Stellantis Chief Executive Officer Antonio Filosa cautioned that significant strategic changes would require time to yield results following the world’s fourth-largest automaker’s disappointing second-quarter performance, which led to a drop in its stock value.
Earlier in May, Stellantis presented a $70 billion US transformation plan to investors, envisioning the introduction of 60 new models by 2030 and the recovery of the lost high-profit U.S. market share, which occurred during the tenure of the previous CEO, Carlos Tavares, who was removed in late 2024.
During a call with analysts, Filosa emphasized the company’s focus on three main priorities: expanding market reach, cutting operational expenses, and enhancing product quality. However, progress in these areas has been gradual.
Filosa acknowledged the need for time to address these challenges effectively, stating that immediate solutions were not feasible. He reassured reporters that the company was on the right path, executing its plans efficiently and promptly.
Stellantis experienced a 6% sales growth in North America, driven partly 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. This included a seven percent increase in sales year-over-year for the Chrysler Pacifica minivan produced in Windsor.
Revenue in Europe remained stable as Stellantis had to lower prices to compete against the rising competition from Chinese automakers.
To counter the growing competition from Chinese rivals like BYD and Chery, Filosa mentioned that Stellantis would leverage its Chinese joint-venture partner Leapmotor, which witnessed a nearly sixfold surge in sales in Europe during the first half of 2026.
Stellantis is also working on developing new vehicle platforms for the European market that will match the competitiveness levels seen in Chinese markets.
Despite posting second-quarter adjusted earnings before interest and tax of $884 million US, mainly driven by robust North American revenue, the figure fell short of analysts’ expectations. The adjusted operating income margin remained low at 1.8%, attributed to price reductions in Europe, increased administrative and research and development costs, adverse currency fluctuations, and tariffs.
Since assuming the CEO position in June last year, Filosa has been concentrating on increasing production volumes and reclaiming lost market share, banking on a recovery in the core business to pave the way for a broader turnaround.
Stellantis has scaled back its electrification plans, with its shares hitting a record low recently and declining by approximately 40% since Filosa took the helm.
The company maintained its full-year outlook, projecting mid-single-digit revenue growth and a low-single-digit adjusted operating income margin. Positive industrial free cash flow is anticipated in the next year, while U.S. tariff costs for the current year are estimated to range from $1.15 billion to $1.38 billion US.
