France and Germany are pushing to scrap the EU's strict petrol and diesel car ban rules, a move that could allow manufacturers to continue producing a small proportion of combustion models.
Currently, EU manufacturers face a 2035 deadline on the sale of brand-new combustion petrol and diesel vehicles. The European Commission has already proposed that the 2035 deadline be ditched, with manufacturers instead required to cut new vehicle exhaust emissions by just 90%. The remaining 10% would need to be compensated through credits such as using low-carbon steel.
However, it is understood that France and Germany want to go further, suggesting that the 10% requirement is also ditched, effectively ensuring firms will still be allowed to produce a small proportion of petrol and diesel models.
Germany and France push for flexibility
Germany has sought to soften the 2035 target to protect its automotive industry. After the news broke, German Chancellor Friedrich Merz described the deal as a "good day for car drivers and for jobs in Germany, France and Europe."
French officials have also pushed for 'Made in Europe' legislation to fight back against Chinese competition. Under the 'Made in Europe' rules, as much as 70% of car components would have to be produced in Europe.
French President Emmanuel Macron added: "We hope that this Franco-German dynamic can swiftly lead to an agreement with our partners, for our jobs and our industry."
Joint statement and UK position
A joint statement by the two countries published last Friday said: "To that end, France and Germany propose a comprehensive package that combines an ambitious European decarbonisation pathway with the regulatory flexibility needed to reflect different market realities and technological conditions."
"It also provides concrete incentives for investment, research and development, European production, and resilient supply chains. This balanced approach will enable the European Union to pursue its climate objectives while strengthening the technological sovereignty, industrial base and international competitiveness of its automotive industry."
The UK, meanwhile, has a more ambitious petrol and diesel car ban deadline, with brand new combustion models set to be off the roads in just a matter of years. The UK is currently reviewing its Zero Emission Vehicle (ZEV) Mandate targets, but officials have previously stressed that sales of brand new petrol and diesel cars will still end by 2030.
