Demand for American cars in the US rose in the second quarter, raising expectations for annual profits. Meanwhile, European manufacturers continue to struggle with falling sales in the bloc, according to the Financial Times (FT).
According to the FT, General Motors and Ford were the only mass-market companies to raise their annual forecasts after strong second-quarter results. Demand for the US auto industry was higher despite options from BYD and other Chinese companies due to US tariffs and restrictions on car software from China. The companies' focus on producing petrol and hybrid versions of pickup trucks and SUVs, which are in high demand in the US market, also played a role in the increased figures. At the same time, European carmakers such as Volkswagen, BMW and Mercedes-Benz warned of a drop in their expected annual profits. Chinese competitors have managed to capture almost 10% of the European market by offering more affordable prices, the FT reports.
However, experts warn that protectionist US policies could cause American manufacturers to fall behind new global standards