A stark divide is emerging in the global automotive industry, separating manufacturers cashing in on America's demand for gas-guzzling pickup trucks from those struggling against Chinese rivals in an increasingly electric world.

This divergence is exemplified by Stellantis, the world's fourth-largest carmaker, which reported robust US growth. Its second-quarter sales climbed 6%, driven by an 11% surge in high-margin pickup trucks. Detroit rivals Ford and General Motors have also raised their profit outlooks, citing strong American demand for these lucrative vehicles.

In Europe, Stellantis saw sales rise by only 3%, facing aggressive new entrants like China's BYD and Chery, which forced price reductions. French competitor Renault is similarly battling to avoid price cuts against Chinese competition. Meanwhile, German premium brand BMW grapples with a slump in China and job cuts.

Andy Palmer, former Aston Martin CEO, noted that those selling pickups in the US – a market largely closed to Chinese manufacturers – are gaining a temporary reprieve from pressures elsewhere.

"The good news is you're profiting from legacy stuff like pickup trucks, but you're not making the change," he said, referring to the slow shift to EVs. "And if you don't make the change, you don't fund the future."

BMW, meanwhile, 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 and Porsche, 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, 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."