Stellantis CEO warns turnaround will take time after quarterly profit

Stellantis CEO Antonio Filosa cautioned that a major strategic overhaul would take time to bear fruit ​after the world’s No. 4 automaker reported weaker-than-expected second-quarter results on Thursday, knocking its shares.

In May, Stellantis pitched a $70 billion US turnaround ‌strategy to investors involving 60 new models by 2030 and regaining high-margin U.S. market share lost under Filosa’s predecessor Carlos Tavares, who was ousted in late 2024.

He told analysts in a call on Thursday that the company is focused on three priorities: increasing market coverage, reducing industrial costs, and improving quality. ​Still, the company’s progress on those points has been gradual.

“We need time … these are not challenges that you address overnight,” Filosa told reporters on Thursday. “We are on track … we are executing properly and as fast as possible.”

Stellantis saw ​sales rise 6 per cent in North America, driven in part by an 11 per cent increase in high-margin Ram pickup trucks and Jeep models ​that Filosa has prioritized to lift U.S. market share. This includes a seven per cent sales jump year-over-year for the Windsor-built Chrysler Pacifica minivan.

Revenue in Europe was flat as Stellantis had to cut prices to ⁠fend off growing competition from Chinese automakers.

Fellow European automakers Volkswagen and BMW opens new tab also reported disappointing quarterly results, pressured by Chinese competition, tariffs and rising costs.

Filosa told ​reporters that to counter the rise of rivals from China like BYD and Chery, Stellantis will lean on its own Chinese joint-venture partner Leapmotor — ​whose sales jumped almost sixfold in Europe in the first six months of 2026.

Stellantis is also developing new vehicle platforms for Europe that will be “at the Chinese level of competitiveness,” Filosa said.

Margin disappoints analysis

The Franco-Italian group posted second-quarter adjusted earnings before interest and tax $884 million US on Thursday, boosted by strong North American revenue.

That was ​more than triple the figure a year earlier but was well short of what analysts expected in a Reuters poll.

The carmaker’s ‌Milan-listed shares closed the day down 4.31 per cent.

Citi analysts said the adjusted operating ‌income margin ⁠remained low at 1.8 per cent and pointed to price cuts in Europe, higher administrative and R&D costs, an unfavourable currency swing and tariffs.

Since taking over in June last year, Filosa has focused on reviving volumes and clawing back lost market share after a…