Stellantis CEO Antonio Filosa has emphasized that the company’s significant strategic transformation will require time for tangible results to materialize following the lower-than-anticipated second-quarter performance, which led to a decline in its shares. In an effort to regain lost U.S. market share under the previous CEO Carlos Tavares, Stellantis presented a $70 billion U.S. turnaround strategy to investors, aiming to introduce 60 new models by 2030.
During a recent call with analysts, Filosa outlined three key priorities for the company: expanding market reach, reducing operational expenses, and enhancing product quality. Despite ongoing efforts, progress in these areas has been gradual. Filosa acknowledged the time needed to address these challenges, affirming that the company is on the right path and executing its strategies efficiently.
Stellantis observed a 6% increase in sales in North America, driven by a surge in demand for high-margin Ram pickup trucks and Jeep models, which Filosa has prioritized to boost U.S. market share. Notably, the Windsor-produced Chrysler Pacifica minivan recorded a 7% sales growth year-over-year. However, revenue in Europe remained stagnant as Stellantis had to lower prices to combat intensifying competition from Chinese automakers.
To counter the competitive threat posed by Chinese rivals like BYD and Chery, Filosa highlighted the company’s reliance on its Chinese joint-venture partner Leapmotor, whose European sales soared nearly sixfold in 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 China.
Despite posting a second-quarter adjusted earnings before interest and tax of $884 million U.S., 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% following the release of the financial results. Analysts from Citi noted that the adjusted operating income margin remained low at 1.8%, attributing it to price reductions in Europe, increased administrative and R&D costs, currency fluctuations, and tariffs.
Since assuming the CEO role in June of the previous year, Filosa has focused on reviving sales volumes and reclaiming lost market share, anticipating that a rebound in the core business will lay the groundwork for a broader turnaround. Stellantis has also scaled back its electrification ambitions. The company’s shares hit a record low this month, having dropped approximately 40% since Filosa’s appointment as CEO.
The company’s second-quarter revenue surged by 13% year-on-year, with a notable 32% increase in North American revenue driven by strong performances from models such as the Jeep Grand Wagoneer and Ram 1500 truck. Fabio Caldato, a fund manager at Stellantis investor AcomeA Sgr, commended the North American revenue performance but noted that it was supported by dealers increasing their inventory.
Stellantis has reaffirmed its full-year forecasts, including 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. Stellantis also projected U.S. tariff costs ranging from $1.15 billion to $1.38 billion U.S. for the current year.