Shares in European automakers Volvo Cars and Stellantis jumped today after stronger than expected US sales figures helped ease concerns that tariffs might dent demand.
Investors have been bracing for a slowdown in US car buying due to higher import duties imposed by President Donald Trump, part of his broader push to boost domestic manufacturing.
Automakers have scrambled to adjust by, for example, focusing on higher-margin models such as SUVs and pickup trucks that are better able to absorb the impact of any tariffs.
Several US and some other automakers posted stronger than feared third-quarter US sales figures this week.
Stellantis last night reported its first quarterly growth in the US this year, with new car sales up 6% in the period, boosting its shares as much as 7% today.
The French-Italian-American carmaker said its Jeep, Chrysler, Ram and FIAT brands all saw sales growth.
Shares in Volvo Cars were up 5% today, after posting a 3% increase in its third-quarter US sales.
Non-electrified models continued to dominate Volvo Cars' US sales, with nearly 70% of September volumes made up of mild hybrids - where electric power only supplements the combustion engine - and other internal combustion engine cars.
The Swedish carmaker, majority-owned by China's Geely Holding, is among the most exposed European manufacturers to US tariffs as most of its US-bound vehicles are produced in Europe.
Volvo Cars currently builds only its electric EX90 SUV in the US but plans to start producing its popular XC60 plug-in hybrid there by the end of 2026, alongside an additional hybrid model at its South Carolina factory before 2030.
In September, Volvo sold a total of 1,629 EX90s globally, and 20,496 XC60s.
