Promising recovery under a new CEO, Chrysler parent Stellantis NV on Tuesday reinstated its annual guidance that in the second half of the year, it will post higher net revenue than in the first half and a low single-digit operating income margin.

The forecast starts providing a picture of what the transition led by Antonio Filosa, who took over as CEO in late June after the resignation of Carlos Tavares in December, will bring to the maker of Jeeps, Rams and Fiats and how quickly the effects of his decisions will have financial impact. He's up against a shifting trade and tariff environment under U.S. President Donald Trump and more unique challenges to Stellantis, including its struggle to regain traction in sales and update aging product.

"What we want to achieve for the rest of the year is a gradual, sequential acceleration," Filosa said on an earnings call, making his CEO debut. "We do that by launching new products, improving our execution, and by taking all the tough decisions needed, as we started doing in H1."

In late morning, Stellantis shares on the New York Stock Exchange were down 1.6% to $9.55. They, however, were climbing in Milan and Paris up 1.5%.

The global automaker last week had shared a preliminary loss for the first half of 2025, which was finalized at $2.61 billion (2.256 billion euro). That was a 140% decrease from a net profit of 5.6 billion euros over the same period in 2024.

Net revenue fell 13% year-over-year to $85.907 billion (74.261 billion euro), though that was higher than the second half of 2024.

In North America, adjusted operating loss was $1.1 billion (951 million euro), down 122% year-over-year from unfavorable volumes and product mix, increased sales incentives and warranty costs. Other regions posted operating profits.

Stellantis in April suspended its annual guidance amid uncertainty around President Donald Trump's tariffs. It confirmed, if left unchanged, the import taxes would cost the company at the higher end of its expectations at $1.7 billion (1.5 billion euro) — $350 million (0.3 billion euro) of which already has hit the books. That prediction comes despite Trump announcing recent deals with Japan and the European Union to lower duties on those countries to 15% from 27.5%.

But the president has shared that 25% duties on Canada and Mexico, major automotive trading partners with the United States and for Stellantis, could increase on Friday. Last year, Stellantis imported more than 40% of the vehicles it sold in the United States.

Filosa emphasized on the call that many vehicles imported from Asia and Europe have no U.S. content, but most vehicles imported from Canada and Mexico that still face a 25% tariff have high U.S. content.

The owner of Dodge and Alfa Romeo as well as European brands such as Peugeot and Citroën hasn't raised prices in response to import taxes, but Chief Financial Officer Doug Ostermann has indicated it could in the future, especially as non-tariffed inventories dwindle on dealer lots.

"I think we can make progress on volumes," Ostermann said. "I think we can make progress on pricing, particularly in the United States. I think a lot of the pre-tariff vehicles that were on dealer lots are running out. I think we'll see industry dynamic that should be supportive of pricing."

Filosa appeared to echo that: "We are also in the process of launching model year '26 products in North America with evolved, much-improved trim lineups, in each case, expected to be margin-accredited."

Stellantis responded to Trump's tariffs in several ways, including pulling back imports from Europe, and cutting production levels at plants in Canada and Mexico.

Filosa pointed to improved volumes, net revenues and adjusted operating income over recent months as signs of progress. For the January-through-June period, AOI was $625 million (540 million euro), down 94% year-over-year, and AOI margin fell to 0.7% from 10%.

The loss included $3.8 billion (3.3 billion euros) in pre-tax charges tied to program cancellations, like a hydrogen fuel cell project, as well as emissions penalties that have now been eliminated, and other restructuring costs.

U.S. sales fell 10% in the second quarter, even as most other major automakers posted gains. But Jeep and Ram brands did post slight sales increases.

Executives have said there'll be further progress in the second half, including in the deep-pocketed United States, as key models like the new Jeep Cherokee SUV hit the market and other gas-powered models like the Hemi V-8 Ram 1500 pickup are revived due to less stringent emissions requirements under Trump.

After getting the green light to relaunch the Hemi engine, the company moved within 10 months, and product will launch before the end of the year, attracting more than 10,000 orders in the first day, Filosa said. A new marketing campaign will highlight Stellantis' ability to make quick corrective actions, the CEO said.

"We own it," Tim Kuniskis, Ram CEO and head of American brands and North America marketing and retail strategy, says in a new ad for the return of the Hemi shown during the earnings call. "We got it wrong, and we're fixing it."

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