France and Germany strike deal on car emissions that could give UK industry 'Made in Europe' status

France and Germany have struck a deal on the sidelines of an EU summit in Brussels to soften the bloc's 2035 combustion engine ban and push tougher 'Made in Europe' manufacturing rules. The agreement opens the door to a potential breakthrough for Britain's car industry, with Downing Street calling potential UK inclusion in the Industrial Accelerator Act 'good news' for jobs and investment. Under the Franco-German proposal, the UK could qualify for European status — but only if London aligns with Brussels on tariffs targeting cheap Chinese electric vehicles. The pact still needs backing from other EU member states and the European Parliament to become law.

Britain has so far resisted Chinese EV tariffs, with Trade Secretary Jonathan Reynolds insisting decisions would be made 'based on the UK interest'.

Under the deal, 70% of car components excluding batteries must be made in Europe, and carmakers must cut fleet CO2 emissions by 90% by 2035 with no offsetting allowed.

German Chancellor Friedrich Merz hailed it a 'good day for car drivers and for jobs in Germany, France and Europe', while Macron said it showed 'clear ambition' on climate and industry.