FRANKFURT (dpa-AFX) - On Thursday, auto stocks rallied as investors were buoyed by the optimism of Bank of America (BofA) analysts. Further fueling the momentum, U.S. President Donald Trump announced plans to relax requirements on fuel consumption for cars and light commercial vehicles in the United States. Trump stated at the White House that he intends to end the "ridiculous and unacceptable" mandates put in place by his Democratic predecessor, Joe Biden.
Bank of America analyst Horst Schneider is generally more optimistic about Europe's auto sector heading into 2026. The key factor, he wrote in his outlook, is reduced regulatory pressure, which allows for greater flexibility. In the U.S., requirements for lower emissions could be scrapped altogether. While Europe is unlikely to go that far, combustion engine vehicles are now expected to remain on the roads until after 2040.
Schneider recommended, among others, buying shares in auto holding company Porsche SE. The stock led the DAX index, gaining nearly 4 percent to reach its highest level since March. According to Schneider, Porsche SE shares offer investors exposure to both Volkswagen and sports car manufacturer Porsche AG at a significant discount.
Mercedes shares were also in high demand, rising 3 percent. For the Stuttgart-based automaker, the worst appears to be over, at least for now. Schneider dropped his previous "Underperform" rating. He maintained his cautious stance on BMW, however. Still, BMW shares climbed by about two percent, even though Schneider believes it is too early to call a turnaround.
Commercial vehicle manufacturers also benefited from the prospect of relaxed regulations in the U.S. Daimler Truck and Traton both posted significant gains on Thursday.
