Frankfurt, Germany / Detroit, USA – Shares of European carmakers surged between 2.5% and 5% in early Thursday trading following U.S. President Donald Trump’s proposal to relax fuel economy standards originally implemented under former President Joe Biden. The regulatory shift aims to make it easier for automakers to sell gasoline-powered vehicles in the U.S., potentially lowering costs for consumers.

By 0930 GMT, European automaker shares showed notable gains:

• Porsche (PSHG_p.DE): +5%
• Mercedes (MBGn.DE) and Volvo Car (VOLCARb.ST): nearly +4%
• Renault (RENA.PA): +3.3%
• Stellantis (Milan-listed STLAM.MI and Paris-listed shares): +2.7%, after surging nearly 8% on Wednesday

Industry Reactions

Stellantis CEO Antonio Filosa welcomed the move, stating the company looks forward to collaborating with the U.S. National Highway Traffic Safety Administration on policies that balance environmental responsibility with consumer choice and affordability.

Volvo Cars indicated it is too early to assess the full impact of the regulatory shift. While Volvo aims to become a fully electric car company and achieve net zero greenhouse gas emissions by 2040, it plans to continue producing hybrid vehicles in the U.S., with certain models slated for production as late as 2029.

Analyst Martino De Ambroggi of Equita noted that the rollback, although expected, should positively affect the European automotive sector. He also mentioned reports suggesting the European Union may adjust or delay its 2035 electrification targets, which could further benefit carmakers producing combustion-engine vehicles.

Industry insiders also indicated that the European Commission may postpone announcing its EU car industry support package, which stakeholders hope will include revisions to the 2035 ban on combustion engine sales.

Market Context

The proposal comes amid continued volatility and strategic shifts in the global auto market, as manufacturers balance regulatory compliance, electrification initiatives, and consumer demand. Wall Street’s main indexes also closed higher on Wednesday, with the Dow Jones Industrial Average gaining nearly 0.9%, reflecting broader optimism in equities.