Michael Foundoukidis

Michael Foundoukidis asked for reconciliation between the intense competitive environment in Europe and improved order intake, inquiring if Europe can realistically return to profitability in 2026 or 2027. He also asked if Stellantis expects to be back in positive AOI territory from Q1 2026.

Answer

CFO João Laranjo stated that Stellantis expects to be profitable at the group level throughout all of 2026, acknowledging competitive pressure and expected pricing headwinds in Europe. He noted positive momentum in European market share at the start of the year. CEO Antonio Filosa reiterated the expectation of group profitability throughout 2026.

Michael Foundoukidis sought to reconcile the intense competitive environment in Europe with the reported meaningful improvement in H2 order intake. He asked if Europe could realistically return to profitability in 2026 or if 2027 was a more plausible timeline. He also inquired whether the company expected to be back in positive AOI territory as early as Q1 2026.

Answer

João Laranjo, Chief Financial Officer, stated that the group expects to be profitable throughout all of 2026. He acknowledged significant competitive pressure in Europe and anticipated some pricing headwinds in 2026, but did not provide specific regional forecasts. Antonio Filosa, Chief Executive Officer, reiterated the expectation for group profitability throughout 2026.

Michael Foundoukidis asked about the implications of the $13 billion U.S. investments on cost structure and pricing environment, and if efficiency gains could offset higher costs. He also inquired about October or Q4 volume trends, especially in the U.S., and whether the improved momentum in the next 6-12 months would be driven by retail, fleets, or both equally.

Answer

CEO Antonio Filosa confirmed expected volume improvements in North America for Q4, driven by the Ram 1500 Hemi V8 and upcoming Jeep Cherokee and Dodge Charger IZ launches, with major impacts visible in Q1 next year. He stated that the pricing scenario is stable and that the investments are meant to drive growth in the largest market, expecting only positive impacts, supported by ongoing cost efficiencies globally.

Michael Foundoukidis asked about the implications of the $13 billion U.S. investment on Stellantis' cost structure and the U.S. pricing environment, questioning if efficiency gains could offset higher costs. He also sought comments on October/Q4 volume trends, especially in the U.S., and whether the improved momentum would be driven by retail, fleets, or both equally in the next 6-12 months.

Answer

CEO Antonio Filosa confirmed expected volume improvement in North America, particularly the U.S., in Q4 and Q1 next year, driven by new launches like the Ram 1500 Hemi V8 and Jeep Cherokee. He anticipates a stable pricing scenario in the U.S. and believes the investment will lead to positive impacts through growth in the largest market, supported by cost efficiencies.

Michael Foundoukidis of ODDO BHF asked about the competitive pricing environment in Europe. He questioned whether Stellantis expects pricing pressure to continue and how the company positions itself, as either a price follower or a more active player.

Answer

CEO Antonio Filosa responded that Stellantis has 'turned the corner' in Europe, evidenced by a market share increase to 17% driven by new product launches. He emphasized that the ramp-up of the new 'smart car' platform will boost both volumes and profitability. While acknowledging industry-wide pressures, particularly in LCVs, he highlighted ongoing dialogues with regulatory bodies to unlock market potential.