Finance
Trump's U-turn on fuel economy rules lifts European carmakers' shares
Published by Global Banking & Finance Review®
Posted on December 8, 2025
2 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on December 8, 2025
2 min readLast updated: January 20, 2026
Trump's proposed changes to U.S. fuel economy standards have boosted European carmakers' shares, impacting the global auto industry.
Dec 4 (Reuters) - Shares of European carmakers jumped between 2.5% and 5% in early Thursday trading after U.S. President Donald Trump proposed slashing fuel economy standards finalised by his predecessor Joe Biden.
The Trump administration cast the change, aimed at making it easier for automakers to sell gasoline-powered cars, as a way to lower consumer costs in the U.S., a trader said.
By around 0930 GMT, shares in Porsche were up more than 5%, Mercedes and Volvo Car gained nearly 4%, while Renault rose 3.3%. Stellantis' Milan-listed and Paris-listed shares rose around 2.7% after surging nearly 8% on Wednesday.
Stellantis CEO Antonio Filosa said in a statement he looked forward to collaborating with the U.S. National Highway Traffic Safety Administration on "environmentally responsible policies that also allow us to offer our customers the freedom to choose the vehicles they want at prices they can afford".
Volvo Cars said it was too early to speculate on consequences of the regulatory change. While it seeks to become a fully electric car company and aims to reach net zero greenhouse gases by 2040, the company said earlier this year it would start at one point production of multiple hybrids in the U.S., with one as late as 2029.
The proposed change was not unexpected, Equita analyst Martino De Ambroggi said, but it should have a positive effect for the whole sector. He also noted the reports that the European Union may soften or significantly modify its 2035 electrification targets.
Industry sources said on Wednesday that the European Commission may delay the announcement of its support package for the EU car industry, which carmakers are hoping could include a revision of a 2035 ban on the sale of combustion engines.
(Reporting by Alessandro Parodi, Giulio Piovaccari, Samuel Indyk, Danilo Masoni and Marie Mannes, editing by Milla Nissi-Prussak)
Fuel economy refers to the distance a vehicle can travel on a specific amount of fuel, typically measured in miles per gallon (MPG). It indicates how efficiently a vehicle uses fuel.
The automotive industry encompasses all companies and activities involved in the design, development, manufacturing, marketing, and selling of motor vehicles. It includes automakers, suppliers, and dealerships.
A combustion engine is an engine that generates power by burning fuel, typically gasoline or diesel, within a combustion chamber. It is commonly used in vehicles to provide propulsion.
Sustainability in the automotive sector refers to practices that reduce environmental impact, such as producing electric vehicles, improving fuel efficiency, and using renewable materials in manufacturing.
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