European Automakers Surge Amidst U.S. Sales Boost Despite Tariff Concerns
European automakers Volvo Cars and Stellantis saw a surge in stock prices due to stronger than expected U.S. sales figures, alleviating fears of a slowdown from tariffs. Focusing on SUVs and trucks, Stellantis and Volvo posted significant third-quarter sales increases, with Stellantis' U.S. sales rising 6%.
Shares in European automakers Volvo Cars and Stellantis soared on Thursday after unexpected robust sales figures in the U.S. helped ease tariff-related concerns. Investors had anticipated a decline in demand due to higher import duties imposed by the Trump administration.
Automakers have responded by shifting focus to high-margin vehicles like SUVs and pickup trucks, which are better equipped to absorb the tariff impacts. Several automakers reported strong third-quarter U.S. sales, contrary to market fears.
Stellantis experienced its first quarterly growth in the U.S. this year, notably increasing new car sales by 6%, significantly boosting its shares by 7%. Meanwhile, Volvo Cars witnessed a 3% rise in U.S. sales, largely driven by its non-electrified models.
(With inputs from agencies.)
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