Stellantis CEO Antonio Filosa has emphasized that the company’s strategic revamp will require time to yield results after the automaker reported second-quarter results below expectations, causing a decline in its shares. In May, Stellantis presented a $70 billion turnaround plan aiming for 60 new models by 2030 to regain lost U.S. market share under the previous CEO, Carlos Tavares. Filosa outlined three key areas of focus: expanding market reach, cutting industrial costs, and enhancing quality, although progress has been gradual.
Despite challenges, Filosa assured that the company is on the right path and striving to execute efficiently. Notably, Stellantis observed a 6% sales increase in North America, attributed to a surge in high-margin Ram pickup trucks and Jeep models, which are central to Filosa’s strategy to boost U.S. market share. On the other hand, revenue in Europe remained stagnant as Stellantis had to lower prices to compete against rising competition from Chinese automakers.
To counter the growing competition from Chinese rivals like BYD and Chery, Stellantis is relying on its Chinese joint-venture partner Leapmotor, which witnessed a substantial increase in sales in Europe in the first half of 2026. Stellantis is also developing advanced vehicle platforms in Europe to match the competitiveness seen in the Chinese market, as stated by Filosa.
The company reported second-quarter adjusted earnings before interest and tax at $884 million, driven by robust North American revenue. Despite a significant improvement from the previous year, this fell short of analyst expectations. Stellantis’ Milan-listed shares closed down by 4.31% following the announcement.
Citi analysts highlighted that the adjusted operating income margin stayed low at 1.8%, citing factors such as price reductions in Europe, higher administrative and R&D expenses, unfavorable currency fluctuations, and tariffs. Since assuming the CEO role last year, Filosa has been dedicated to reviving volumes and reclaiming lost market share, envisioning a core business recovery as the foundation for an overall revitalization.
Stellantis has revised its electrification ambitions and witnessed a decline in its shares since Filosa’s appointment. Despite challenges, the company remains committed to its full-year outlook, projecting mid-single-digit revenue growth and a low-single-digit adjusted operating income margin. Industrial free cash flow is anticipated to turn positive next year, with estimated U.S. tariff costs for the year ranging from $1.15 billion to $1.38 billion.