Wrapup 1: Pickup truck profits highlight growing divide among global automakers
30/07/2026 13:49
* Automakers selling pickups in US doing well
* Traditional automakers struggling in China
* Declines in China spread to world's top-seller Toyota
By Nick Carey
LONDON, July 30 (Reuters) - From Fiat to Ferrari, results on
Thursday highlighted a growing gap between the carmakers raking
in cash by selling gas-guzzling pickups to Americans and those
struggling to compete with Chinese rivals in a world that is
slowly embracing electric.
Few illustrate that better than Stellantis, which straddles both
the U.S. and Europe, and German premium automaker BMW BMWG.DE
as it struggles with a slump in China and cuts jobs.
World No. 4 carmaker Stellantis posted results that showed solid
growth in the U.S. with second-quarter sales up 6%, including an
11% increase for high-margin pickup trucks.
Detroit rivals Ford F.N and General Motors GM.N have already
raised their profit outlook for this year, citing U.S. demand
for pickup trucks, one of the most profitable segments.
Yet in Europe, where Stellantis faces new lower-cost Chinese
arrivals such as BYD 002594.SZ or Chery 9973.HK , sales were
up only 3% as the automaker was forced to lower its prices.
French rival Renault RENA.PA has also said it is battling to
avoid lowering prices in the face of Chinese competition.
Former Aston Martin CEO Andy Palmer said those selling
pickups in the U.S., which is closed to Chinese carmakers, were
gaining respite for now from pressures in other markets where
they have to balance selling combustion engine cars with
developing new electric ones and fending off Chinese rivals.
"The good news is you're profiting from legacy stuff like
pickup trucks, but you're not making the change," Palmer said,
referring to the stalling but steady shift to EVs. "And if you
don't make the change, you don't fund the future."
'UNTOUCHABLE'
BMW is struggling to shape its future.
For decades, it rode high on a reputation for technological
excellence and, like fellow premium German brands Mercedes-Benz
MBGn.DE and Porsche P911_p.DE , a long heritage that it could
monetize with wealthy car buyers.
But BMW's sales in China fell 30% in the second quarter and
it is on track for a third consecutive year of decline in the
world's largest car market.
Munich-based BMW has not helped itself by being slow to launch
its Neue Klasse, or "new class," of electric vehicles in China,
where local automakers develop flashy new electric cars at a
blistering pace.
It will now review working practices once deemed "untouchable"
after a 35% quarterly profit drop.
BMW is not alone. Porsche will cut one in five jobs as slumping
China sales have hit home. Falling China sales have forced
Mercedes to scrap sales and revenue forecasts.
Their margins are evaporating because Chinese rivals are
launching premium models with the latest tech at lower prices,
forcing German premium brands to discount.
Even Japan's Toyota 7203.T , which has fared better than most
legacy manufacturers, said its sales in China fell 17.1% in the
first half of the year.
"Legacy carmakers are such a long way behind in China,"
Palmer said. "They need to find ways to catch up."
(Reporting by Giulio Piovaccari in Milan and Rachel More in
Berlin; Writing by Nick Carey; Editing by Alexander Smith)
((mailto:nick.carey@thomsonreuters.com; +44 7385 414 954;))