Stellantis CEO warns turnaround will take time after weak quarter

Since taking over in June last year, Filosa has focused on reviving volumes and clawing back lost market share after a lengthy downturn, betting that a recovery in the core business will provide the foundation for a wider turnaround. Stellantis has also scaled back its electrification ambitions and the company took about €22 billion of charges in February tied to that retreat. The group's shares touched a record low of €4.59 this month and are down about 40% since Filosa became CEO. Stellantis' second-quarter revenue rose 13% year-on-year to €43.48 billion, with a 32% increase in North America on strength in models including its Jeep Grand Wagoneer and Ram 1500 truck. Fabio Caldato, a fund manager at Stellantis investor AcomeA Sgr, said North American revenue performance was good but supported by dealers raising stock. "Looking beyond the headline figure, the result is a bit more debatable," he said. "They need to clean things up there before they can really sell new higher-margin models." Revenue in Europe, the automaker's other main market, was flat in the quarter. The company stuck with its full-year forecasts, including for revenue growth of a mid-single-digit percentage and a low-single-digit adjusted operating income margin. Positive industrial free cash flow is not expected until next year. Stellantis forecast U.S. tariff costs of €1 billion to €1.2 billion this year. ($1 = 0.8744 euros) Stellantis saw sales rise 6% in North America, driven in part by an 11% increase in high-margin Ram pickup trucks and Jeep models that Filosa has prioritized to lift U.S. market share. Revenue in Europe was flat as Stellantis had to cut prices to fend off growing competition from Chinese automakers. Fellow European automakers Volkswagen VOWG.DE and BMW BMWG.DE 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 9863.HK - 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. MILAN, July 30 (Reuters) - Stellantis STLA.MI 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 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. "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." The Franco-Italian group posted second-quarter adjusted earnings before interest and tax (EBIT) of €773 million ($884 million) on Thursday, boosted by strong North American revenue. That was more than triple the figure a year earlier but was well short of the €914 million expected by analysts in a Reuters poll. The carmaker's Milan-listed shares were down 4.3% at €5.06 by 0950 GMT, among Europe's worst-performing stocks, after falling as much as 8% in early trading. Citi analysts said the adjusted operating income margin remained low at 1.8% and pointed to price cuts in Europe, higher administrative and R&D costs, an unfavourable currency swing and tariffs.

Stellantis CEO warns turnaround will take time after weak quarter

Outlook remains unchanged

North America offsets flat Europe

CEO says turnaround will take time

Quarterly results disappoint on margin

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