The Trump administration relaxes fuel economy standards to promote the development of gasoline vehicles, European automotive stocks respond by rising.

After U.S. President Trump proposed a significant reduction in the fuel economy standards set by former President Biden last year, European car manufacturers' stocks rose in response. As of the time of writing, on the Frankfurt Stock Exchange in Germany, Porsche rose by over 5%, Mercedes-Benz and Volvo rose by nearly 4%, Renault rose by over 3%; Stellantis (STLA.US) stocks listed in Italy and France both rose by over 3%. It is reported that on Wednesday local time, Trump proposed cutting Biden's fuel economy standards last year to make it easier for car manufacturers to sell gasoline-powered cars. According to a notice issued by the National Highway Traffic Safety Administration (NHTSA) under the U.S. Department of Transportation, by the 2031 model year, the average fuel economy standard for the industry's light vehicles should reach about 34.5 miles per gallon (approximately 6.9 liters per 100 kilometers), significantly lower than the current standard requirement of 50.4 miles per gallon (approximately 4.7 liters per 100 kilometers). Trump stated that this measure will reduce American consumers' expenses on vehicles, making it easier for American families to afford the cost of buying cars and protect America's Car-Mart, Inc. jobs. The announcement issued by the U.S. Department of Transportation estimates that the new standard is expected to save car buyers $109 billion over the next 5 years, reducing the purchase cost of each new car by $1,000 on average. Stellantis CEO Antonio Fioravanti stated in a statement that he looks forward to working with the NHTSA to develop policies that are "both environmentally responsible and allow us to offer customers the freedom to choose the vehicles they want at prices they can afford." Volvo, on the other hand, stated that it is too early to speculate on the consequences of regulatory changes. Although the company is committed to becoming a fully electric car company and aims to achieve net zero greenhouse gas emissions by 2040, it announced earlier this year that it will begin producing multiple hybrid cars in the United States at the right time, with the latest launch expected by 2029. In response to this, Martino de Ambroggi, an automotive analyst at Milan investment bank Equita, stated that the proposed standard changes are not surprising, but they are expected to have a positive impact on the entire industry. He also pointed out that there are reports that the EU may soften or drastically modify its electrification targets for 2035.