Investing - Fiat Chrysler led the rally in autos Monday following better-than-expected sales last month and an agreement from China to lower its tariffs on U.S. cars imported into Beijing.
Following the 90-day trade-war truce agreed between President Donald Trump and China’s Xi Jinping on Saturday, China said late Sunday it would reduce and remove its 40% tariff on cars coming into China from the United States.
While it was not clear to what level the tariff on imported U.S. cars would fall, White House chief economic advisor Larry Kudlow told Fox Business on Monday he assumes the tariffs would be rolled back all the way.
Fiat Chrysler (NYSE:FCAU) said November sales increased 17% from a year ago to 181,310 vehicles, beating Wall Street estimates for a 15% increase, sending its shares more than 4% higher.
The upbeat performance was driven by 12% rise in the Jeep brand to 73,784 vehicles, with Wrangler, Cherokee and Compass models all reaching sales records for the month.
Ford Motor (NYSE:F) rose 3%, shrugging off data showing its sales fell about 6.9% to 196,303 vehicles in November, pressured by 2.3% drop in truck sales, a 4.9% decline in SUVs and a 19.5% tumble in cars.
General Motors (NYSE:GM) saw sales plunge 1% last month, Reuters reported, citing a source familiar with the company. Its shares rose 2%.
