France and Germany seal EU car deal that could give Britain 'Made in Europe' status and protect automotive jobs

France and Germany struck a deal on Friday on the sidelines of an EU leaders' summit in Brussels, softening the bloc's effective ban on new petrol and diesel cars from 2035 while opening the door for Britain to be treated as a trusted partner under the EU's 'Made in Europe' industrial scheme. Downing Street called potential UK inclusion 'good news' for Britain's automotive industry and the jobs it supports, though cautioned that a European process still had to run. The deal requires carmakers to cut fleet-average CO2 emissions by 90% by 2035, with no obligation to offset the remaining 10%.

Under the Franco-German plan, 70% of car components excluding batteries must be produced in Europe, with 10% of battery content from European sources.

UK inclusion would be conditional on full reciprocity and dynamic alignment with EU trade protection measures — potentially including tariffs on Chinese-made electric vehicles that Britain has so far resisted imposing.

German Chancellor Friedrich Merz hailed it as 'a good day for car drivers and for jobs in Germany, France and Europe', while the deal still needs backing from other EU states and the European Parliament.