RACE

Trade Deal Boosts European Carmakers: Shares of major European car manufacturers are rising due to expectations of a favorable trade deal between the U.S. and EU, which may lower tariffs on imports significantly.

Potential Tariff Changes: The proposed deal could impose a 15% tariff on European imports, while waiving tariffs on certain products, leading to notable gains in stock prices for companies like Stellantis, Mercedes-Benz, and Ferrari.

Impact of Trade War on European Auto Stocks: The potential for a trade war between the U.S. and E.U. has negatively affected European auto stocks, causing a decline in the Stoxx Europe 600 Autos index by over 5% in 2025.

Comparison with Overall Market Performance: Despite the downturn in auto stocks, the overall Stoxx Europe 600 benchmark has seen a 7% return, highlighting a significant disparity in performance within the market.

Ford's Recalls and Financial Impact: Ford Motor Company has announced a recall of 694,271 SUVs in the U.S. due to fuel leaks that pose a fire risk, leading to an estimated cost of $570 million for the company. This recall is part of a larger trend, as Ford has been leading in recalls since 2020, partly due to a consent order with NHTSA.

Stock Performance and Comparisons: Ford's shares have decreased by 16.7% over the past year, contrasting with a 4.2% decline in the industry. In comparison, other automakers like Ferrari, PACCAR, and Westport Fuel Systems have better stock rankings and performance metrics.