European auto stocks rise as Trump backs down on Greenland tariffs

Porsche Automobil Holding SE

22/01/2026 09:09

Adds French car parts makers rising in bullet 6

** Shares in European carmakers and auto part suppliers rise after U.S. President Donald Trump backed down on Greenland tariffs, easing market concerns

** The pan-European automobiles and parts index .SXAP is up around 2.6% as of 0837 GMT

** German carmakers BMW BMWG.DE, Mercedes MBGn.DE and Porsche P911_p.DE rise between 2.8% and 3.2%

** Volkswagen, which also reported surprisingly strong 2025 net cash flow in its automotive division, jumps 5.6%, among top performers on Europe's benchmark STOXX 600 index .STOXX

** Volvo Cars VOLCARb.ST is up 2.2%, Renault RENA.PA and Stellantis STLAM.MI rise around 1.2%

** French car parts makers Valeo VLOF.PA and Forvia FRVIA.PA gain around 4%

** Trump's remarks in Davos about Greenland eased immediate fears of punitive trade tariffs, Warburg Research analyst Fabio Hoelscher says

** "The federal electric vehicle subsidies in Germany and a technical rebound on the sector's relatively low valuations could be helping, too," Hoelscher adds

(Reporting by Amir Orusov)

((Amir.orusov@thomsonreuters.com))