By Marie Mannes
STOCKHOLM (Reuters) -Shares in European automakers Volvo Cars and Stellantis jumped on Thursday after stronger than expected U.S. sales figures helped ease concerns that tariffs might dent demand.
Investors have been bracing for a slowdown in U.S. 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 U.S. and some other automakers posted stronger than feared third-quarter U.S. sales figures on Wednesday and Thursday.
Stellantis reported late Wednesday its first quarterly growth in the U.S. this year, with new car sales up 6% in the period, boosting its shares as much as 7% on Thursday.
The French-Italian-American carmaker said its Jeep, Chrysler, Ram and FIAT brands all saw sales growth.
Shares in Volvo Cars were up 5% at 0925 GMT, after posting on Thursday a 3% increase in its third-quarter U.S. sales.
Non-electrified models continued to dominate Volvo Cars’ U.S. 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 U.S. tariffs as most of its U.S.-bound vehicles are produced in Europe.
Volvo Cars currently builds only its electric EX90 SUV in the United States 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.
(Reporting by Elviira Luoma in Copenhagen, Marie Mannes in Stockholm, Giancarlo Navach in Milan. Editing by Anna Ringstrom and Mark Potter)
