Stellantis CEO Antonio Filosa has acknowledged that the company’s significant strategic reorganization will require time to yield results, following the automaker’s second-quarter performance falling below expectations and impacting its stock value.
In a presentation made in May, Stellantis outlined a $70 billion US restructuring plan to investors, aiming to introduce 60 new vehicle models by 2030 and recapture the high-margin market share in the U.S. previously lost under former CEO Carlos Tavares, who was removed in late 2024.
Filosa emphasized three key priorities during a recent analyst call: expanding market presence, cutting industrial expenses, and enhancing product quality. Nonetheless, progress in these areas has been gradual, with Filosa expressing the necessity for time to address these challenges effectively.
The company observed a 6% sales growth in North America, primarily driven by an 11% surge in sales of high-margin Ram pickup trucks and Jeep models, which Filosa has prioritized to regain U.S. market share. Notably, sales of the Windsor-produced Chrysler Pacifica minivan marked a 7% increase year-over-year.
Meanwhile, revenue in Europe remained stagnant as Stellantis was compelled to reduce prices to withstand escalating competition from Chinese automakers.
To counter the rise of Chinese rivals such as BYD and Chery, Filosa mentioned leveraging Stellantis’ Chinese joint-venture partner, Leapmotor, which witnessed a nearly sixfold sales increase in Europe in the initial half of 2026. Additionally, Stellantis is actively developing new vehicle platforms for the European market aiming to match the competitiveness levels seen in China.
While Stellantis reported a second-quarter adjusted earnings before interest and tax of $884 million US, primarily driven by robust North American revenue, this figure fell short of analysts’ expectations. Consequently, the company’s Milan-listed shares closed down by 4.31% following the announcement.
Citi analysts noted 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 been focused on revitalizing volumes and reclaiming lost market share, banking on a core business recovery to pave the way for a broader transformation.
Stellantis has scaled back its electrification ambitions, with the group’s shares hitting a record low this month and declining approximately 40% since Filosa’s appointment.
Stellantis maintained its full-year projections, including expectations for mid-single-digit revenue growth, a low-single-digit adjusted operating income margin, and the anticipation of positive industrial free cash flow in the coming year. The company also projected U.S. tariff costs ranging from $1.15 billion to $1.38 billion US for the current year.
