Stellantis CEO Says Turnaround Will Take Time After Disappointing Quarterly Profit

Stellantis shares fell 4% as North American sales rose 6%.

Stellantis CEO Antonio Filosa said a major overhaul will take time to work after the company reported weaker-than-expected results, affecting its shares. The company's second-quarter results were not as good as expected.

In May, Stellantis presented a $70 billion US plan to investors to launch 60 new models by 2030 and regain US market share. The plan aims to improve the company's performance. Stellantis wants to regain its high-margin US market share.

Filosa told analysts the company is focused on three main goals: increasing market coverage, reducing costs, and improving quality. However, progress has been slow so far.

Filosa said the company needs time to address its challenges. He believes they are on track and executing their plans as fast as possible. The company is working hard to improve. Filosa is confident in their strategy. The company will take time to fix its problems. Filosa told reporters they are doing their best.

The long-term branding strategy of Stellantis may affect Canadian factories.

Stellantis is refreshing its North American products and plans to launch 11 new models by 2030.

Stellantis saw a 6% sales increase in North America, driven by an 11% rise in Ram pickup trucks and Jeep models. The company also saw a 7% sales jump for the Chrysler Pacifica minivan. This increase is good news for the company. Stellantis is happy with its North American sales.

Revenue in Europe was flat due to growing competition from Chinese automakers.

Other European automakers like Volkswagen and BMW also reported disappointing quarterly results due to Chinese competition and rising costs.

Filosa said Stellantis will work with its Chinese partner Leapmotor to counter the rise of Chinese rivals like BYD and Chery.

Stellantis is developing new vehicle platforms for Europe to compete with Chinese automakers.

The company posted second-quarter adjusted earnings of $884 million US, boosted by strong North American revenue.

This was more than triple the figure from a year earlier but was lower than expected.

The company's shares closed the day down 4.31%.

Stellantis CEO Filosa is working to recapture market share.

Citi analysts said the company's operating income margin was low at 1.8% due to price cuts and higher costs.

Since taking over, Filosa has focused on reviving sales and regaining lost market share.

Stellantis has scaled back its electrification plans, and its shares have touched a record low.

The company's second-quarter revenue rose 13% year-on-year, with a 32% increase in North America.

A fund manager said North American revenue performance was good but was supported by dealers raising stock.

Stellantis plans to produce small, low-cost electric cars.

A fund manager said the result was debatable and the company needs to improve before selling new models.

Revenue in Europe was flat in the quarter.

The company stuck with its full-year forecasts, including revenue growth and a low operating income margin.

The company does not expect positive industrial free cash flow until next year.

Stellantis forecast US tariff costs of $1.15 billion to $1.38 billion US this year. The company is preparing for these costs. Stellantis will have to pay these tariffs. The tariffs will affect the company's finances.

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