Stellantis experienced a significant 13% increase in its stock price on October 28, 2026, following third-quarter results that showcased progress in its extensive turnaround plan. The automaker, which owns brands like Chrysler and Jeep, reported a 1% rise in revenues to 37.6 billion euros, alongside adjusted operating income soaring 184% to 256 million euros. Despite a $4.5 billion cash outflow in the quarter, the company improved its industrial free cash flow from negative 4.3 billion euros last year to negative 4 billion euros, signaling advancement in cost control and operational efficiencies.

The automaker reaffirmed its 2026 guidance, committing to achieving positive industrial free cash flow by 2027 as part of its 60 billion euro turnaround strategy aimed at restoring profitability. CEO Antonio Filosa highlighted that Stellantis is ahead of schedule and expects to exceed its cost-cutting targets, aiming for at least 6 billion euros in savings by 2028. The plan includes a 36 billion euro investment focused largely on the North American market, with an emphasis on launching new models, refreshing current lines, and integrating cutting-edge technologies.

Looking ahead, Stellantis is targeting a substantial increase in revenues to 190 billion euros by 2030, reflecting roughly 23% growth from 154 billion euros last year. The company aims to reach a 7% adjusted operating margin by that time. These goals are supported by mid-single-digit percentage rises in net revenue and low-single-digit adjusted operating margins forecasted for 2026. The strategy underlines Stellantis’ commitment to long-term competitiveness amid challenges in key markets.

European automakers, including Stellantis, face increasing competition in China from local brands such as Xiaomi, BYD, and Geely, which is complicating growth prospects in the region. Recent actions by other manufacturers, like Porsche’s decision to reduce its China exposure and Mercedes-Benz’s report of falling third-quarter sales in the country, underscore the tougher environment. Stellantis CEO Filosa has called for stronger European regulatory support to incentivize domestic manufacturing and innovation to better compete against Chinese rivals.