France and Germany back a 90% car CO₂ cut for 2035 in return for tougher Made in Europe rules

France and Germany have agreed a joint position on the future of Europe's car industry, the two governments said in a joint statement on Friday 16 October. The statement gives no figures. Reports on the paper behind it say the two want the EU's 2035 target for new-car emissions softened and, in return, back tougher "Made in Europe" rules for cars.

Under the deal, car makers would have to cut fleet-average CO₂ from new cars by 90% by 2035, measured against 2021, Euronews and Politico reported on 16 October. Unlike the European Commission's December 2025 proposal, they would not have to offset the remaining 10%. The current law requires a 100% cut, which in practice ends sales of new petrol and diesel cars.

In exchange, only cars that pass a "Made in Europe" test could be bought by public bodies or with public subsidies. From 2028 a car would have to be assembled in Europe, with at least 70% of the value of its components, not counting the battery, created in Europe, EUobserver and Euronews reported on 16 October. The Commission proposed the same 70% threshold in March. The battery rule starts at 10%. Euronews described it as 10% of battery content from European sources, while Le Journal de l'Automobile, which saw the full text, said at least 10% of batteries would need three main European-made parts, including the cells, with the share rising later. The rules come from the Commission's proposed Industrial Accelerator Act, but EUobserver reported that the paper wants the car rules split off and adopted alongside it.

The UK, Norway, Iceland and Switzerland could count as "Made in Europe" if they sign agreements with the EU. Those would give EU firms fair access to their public contracts and funding, and stop other countries using them as a back door, according to Euronews on 16 October. They would also have to follow EU trade defence measures, which include the EU's tariffs on Chinese electric cars, the Financial Times and the Guardian reported on 15 October, citing the paper.

The European Automobile Manufacturers' Association (ACEA) said on 16 October that the paper was "a step forward", but that it did not propose making full use of offsets from low-carbon materials, and that its Industrial Accelerator Act plan had a narrow geographical scope.

The position still needs backing from other member states and the European Parliament. MEPs are expected to vote on the Commission's proposal on 23 November, according to Euronews and the Parliament's legislative tracker. A UK–EU summit takes place in Brussels on 20 November. In its weekly update on 16 October, which did not mention the Franco-German paper, the Society of Motor Manufacturers and Traders (SMMT) said "preferential partner status" for the UK under the EU's proposed Made in Europe framework was vital.

Sources: Joint Franco-German press statement, Élysée and German federal government, 16 October 2026; Euronews, 16 October 2026; Politico Europe, 16 October 2026; EUobserver, 16 October 2026; Le Journal de l'Automobile, 16 October 2026; European Commission, Industrial Accelerator Act proposal, 4 March 2026; ACEA press release, 16 October 2026; Financial Times, 15 October 2026; The Guardian, 15 October 2026; European Parliament Legislative Train, accessed 17 October 2026; SMMT, 16 October 2026.