Stuart Pearson

Stuart Pearson asked about the trend in warranty cash outflow, noting that spending was relatively flat despite high provisions, and if this gap is expected to narrow. He also inquired about Stellantis's thoughts on capacity-sharing partnerships with Chinese OEMs, similar to its Leapmotor JV, and if this model could expand to other regions or legal entities.

Answer

CEO Antonio Filosa emphasized dramatic improvements in product quality, evidenced by over 50% improvement in one-month in-service KPI in North America and over 30% in Europe in 2025, supported by 2,000 new engineers. He stated that Stellantis is pioneering capacity sharing with Leapmotor in Europe, South America, and Middle East/Africa, benefiting both parties. CFO João Laranjo confirmed that warranty spend in 2026 is not expected to increase beyond 2025 levels, anticipating benefits from quality improvements.

Stuart Pearson raised questions about warranty, noting that spending remained relatively flat despite significant provisions. He asked if the warranty cash outflow rate was stabilizing and if it was expected to increase in 2026/2027, and whether the gap between provisioning and outflow would narrow. He also inquired about capacity strategies beyond closures, specifically regarding partnerships with Chinese OEMs for capacity sharing, similar to the Leapmotor JV.

Answer

Antonio Filosa, Chief Executive Officer, emphasized dramatic improvements in product quality, citing a 50%+ improvement in one-month in-service KPI in North America and 30%+ in Europe for 2025, supported by recruiting over 2,000 engineers. On capacity sharing, he noted Stellantis's pioneering role with Leapmotor International, already selling their cars and planning capacity sharing in Europe and South America. João Laranjo, Chief Financial Officer, confirmed that warranty spend in 2024 and 2025 was flat and is not expected to increase in 2026 versus 2025, anticipating eventual benefits from quality improvements.

Stuart Pearson from Exane BNP Paribas asked for a diagnosis of why Stellantis's profitability fell from benchmark levels to near loss-making in key regions. He also questioned the significant restructuring charges and requested separate financial disclosures for the industrial and financing businesses.

Answer

CEO Antonio Filosa attributed the performance decline primarily to past decisions to discontinue seven popular nameplates in North America, a move that is now being reversed. CFO Doug Ostermann explained that a majority of the H1 restructuring charges reflect strategic shifts by the new management team, such as exiting fuel cell initiatives, and noted more could occur. He acknowledged the request for separate Finco reporting, stating it's under regular review.