France and Germany strike deal: 2035 CO2 target eased to 90% ; more “Made in Europe” EV and components

France and Germany announced on 16 October 2026 that they have agreed on a joint approach to securing the future of the European automotive industry. The two countries say they want the sector to complete its transformation while keeping Europe’s climate ambitions intact and ensuring that tomorrow’s cars are built in Europe.

The approach rests on two goals: cutting CO₂ emissions significantly, but not entirely, and strengthening Europe’s ability to develop and manufacture the next generation of electric vehicles. France and Germany describe this as “European preference” in practice, meaning the shift to clean mobility should go hand in hand with investment, innovation and production in France, Germany and the rest of the continent.

This compromise, negotiated by the two member states…