European carmakers rise as Trump backs down on Greenland tariffs

Shares in European carmakers 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%

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