Stellantis Affirms Outlook as it Works to Cut Costs

Stellantis NV’s efforts to lower costs and improve its vehicle lineup are showing early signs of progress as the struggling automaker works toward a recovery, Albertina Torsoli reported for Bloomberg News.

Stellantis is pursuing cost reductions and product improvements as it works to restore profitability and strengthen its global automotive business. [Photo: Stellantis Facebook]

Adjusted operating income rose to €256 million ($285 million) in the third quarter. Chief Executive Officer Antonio Filosa said that his plan to generate additional savings and address quality problems remained on track.

The automaker reaffirmed its financial guidance for the year, even as competition continued to put pressure on vehicle prices in Europe.

Stellantis reported a third-quarter adjusted operating income margin of 0.7% and expects the margin to reach the low-single-digit range for full-year 2026.

The company’s shares rose 3.8% at 9:58 a.m. in Milan on Wednesday, although the stock remained down about 60% for the year.

“The key question remains how” Stellantis will improve profitability in North America and Europe, Citi analyst Harald Hendrikse wrote in a note. “We don’t believe that product will be enough.”