Shares of European automakers Stellantis and Volvo Cars jumped on Thursday after stronger-than-expected U.S. sales figures helped ease investor concerns that recent tariffs would dampen demand. The boost came as the companies reported that American consumers continued to purchase their vehicles, even amid escalating trade tensions and import taxes. The positive results prompted optimism that sales momentum could survive policy headwinds.

Stellantis and Volvo were both trading higher in European markets. Observers said the share gains reflect confidence that their U.S. performance may buffer their exposure to tariffs. In particular, Volvo noted a 3% increase in its U.S. sales in September, contributing to the share rally. Meanwhile, Stellantis’s U.S. deliveries also showed resilience, helping to reassure markets.

Industry analysts point out that the strength in sales likely stems from product mix, pricing strategies, and consumer loyalty in key states where tariffs would have had the greatest impact. Volvo’s ability to grow U.S. sales is seen as a signal of demand strength despite cost pressures. Stellantis, with a diverse portfolio of brands and models, also has some insulation from tariff effects.

Tariffs on imported vehicles have loomed large over European automakers, with some warning that higher costs could force price increases or margin squeezes. But the recent sales data suggests that demand is holding up, at least for now. If the trend continues, it could give companies passing through tariff costs more leeway without undermining volume growth.

For investors, the rally serves as a reminder that execution and performance can still trump macro risks. While tariffs remain a wildcard, automakers that succeed in defending their U.S. market position can offer a layer of stability in a volatile policy environment. For now, Stellantis and Volvo’s share gains reflect cautious confidence that they may be navigating the tariff headwinds better than feared.

Source: Reuters.