Stellantis NV Chief Executive Officer Antonio Filosa said the carmaker’s core North America region will return to profitability this year, turning around from steep losses tied to a reset of its electric-vehicle ambitions.

Speaking to analysts during an earnings call, Filosa on February 26 touted traction at Stellantis’ Ram truck and Jeep SUV brands with new models and derivatives driving sales. This includes the Hemi V-8 engine and Cherokee model that are starting to hit dealerships. 

The group expects stable to positive vehicle prices in the U.S. this year, as carmakers price in tariff costs, Chief Financial Officer Joao Laranjo said during the same call. Pricing in Europe will remain under pressure, he said. 

The shares jumped after the comments, to rise as much as 6.9% in Milan trading, the biggest intra-day move since December. Before February 26, Stellantis had shed some 30% of its market value since the start of the year after worse-than-expected fallout from scaling back its EV plans. 

Filosa said he was optimistic about swinging back to profit in North America, where the company reported a €941 million ($1.1 billion) loss during the second half of the year, following writedowns and charges. 

The region is “the largest engine and the largest contributor to our 2026 profit growth for Stellantis in the world,” he said.

Earlier this month, the group resized its overly aggressive EV strategy after demand in Europe disappointed and the U.S. removed incentives, where carmakers including Stellantis have been resurrecting gas-guzzling models. Total impairments last year ballooned to €25.4 billion, which were concentrated during the second half. 

Stellantis rowing back on electric-vehicle plans is part of a push to regain market share in the U.S. and Europe. Stellantis has been slashing prices, and volumes improved led by North America, where deliveries increased 39% to 825,000 vehicles. 

Total losses for the six months through December 2025 amounted to €1.38 billion ($1.6 billion), Stellantis said.

The result “disappoints in all key regions,” Citi analyst Harald Hendriske wrote in a note. “We continue to believe that Stellantis needs a more ambitious cost plan than we have been shown so far.”

As part of the sweeping overhaul, Stellantis is considering using EV technology from its Chinese partner Zhejiang Leapmotor Technologies Inc., Bloomberg reported on February 26. Talks, which are at an early stage, are focusing on a Leapmotor vehicle platform to make affordable EVs in Europe, across brands such as Fiat and Opel, people familiar with the plans said. 

To keep up the momentum in the U.S., the group will also continue introducing limited edition versions of its Jeep Wrangler, introducing one new such limited-edition version on the 12th day of each month for 12 consecutive months.

The company is still estimating €1.6 billion in net tariff expenses this year.

Stellantis detailing the record charges on February 6 prompted the company to shed a quarter of its value. A large part of the reset is tied to unwinding his predecessor Carlos Tavares’ ambitious bets on electric vehicles. The adjustment also downsized plans for its battery manufacturing capacity. 

Flat Sales

In Europe, the company reported an adjusted operating loss of €660 million, including also costs related to the Takata airbag recall campaign. This compares with an adjusted operating income of €359 million in the year-earlier period. Vehicle sales of brands like Peugeot, Fiat and Opel were essentially flat at 1.2 million. 

Stellantis on February 26 reiterated 2026 guidance. It’s targeting mid-single digit percentage increase in net revenues, and a “low-single-digit” adjusted operating income margin this year.

Carmakers have been struggling to navigate slower-than-expected EV demand. In the U.S., the Trump administration has scratched tax credits, while high prices mean buyers in Europe remain highly sensitive to subsidies. Chinese brands like BYD Co., offering competitive models, are gaining market share in much of the world, alongside some rivals like Renault SA that are boosting sales of affordable models, such as the R5.

Filosa has said the Franco-American-Italian carmaker intends to maintain its structure as a global company after a sweeping review of its business. He’s due to present more details on May 21 at a capital markets day in the U.S. Stellantis was formed through the 2021 merger of Fiat Chrysler and France’s PSA Group, creating a portfolio of 14 brands.