US demand for petrol trucks and large SUVs boosted profits at Detroit carmakers, widening the gap with European groups facing declining sales and intense competition from Chinese rivals. General Motors and Ford were the only mass-market carmakers to raise annual guidance after a strong second quarter. At Stellantis, quarterly adjusted operating profits more than tripled on modest US sales recovery. Steep US tariffs and restrictions on Chinese car software protected the American market from affordable imports like BYD. Detroit automakers benefited from relaxed emissions standards under the Trump administration, shifting focus from lossmaking EVs to profitable petrol and hybrid trucks and SUVs. After GM reported a 30% year-on-year increase in second-quarter adjusted operating profit, CEO Mary Barra noted sustained demand for trucks and SUVs despite rising petrol prices. Stellantis CEO Antonio Filosa emphasized US consumer preference for large vehicles, enabled by favorable regulations. In contrast, Volkswagen, BMW, and Mercedes-Benz warned of lower-than-expected annual profits amid restructuring efforts to compete with Chinese manufacturers capturing nearly 10% of Europe's car market. Stellantis also reported pricing pressure in Europe. EU automakers criticized punitive emissions rules, while Renault CEO François Provost urged faster implementation of "Made in EU" manufacturing targets.

Ford, GM, and Stellantis maintained commitment to EV transition, though analysts warned that retreating to petrol vehicles could pose future risks. Tu Le of Sino Auto Insights questioned whether US automakers were genuinely committed to innovation or simply capitalizing on short-term gains. Felix Stellmaszek of Boston Consulting Group noted that US automakers were better positioned than European counterparts, but cautioned against prolonged protectionism.

Mark Wakefield of Alix Partners highlighted that despite policy shifts, Washington consistently aimed to limit Chinese competition, unlike Europe's fragmented approach.