France may be preparing to soften its position on European Union vehicle emissions regulations following negotiations with Germany.

The potential agreement could allow manufacturers to continue selling more combustion-engine cars after 2035 while introducing stricter requirements for European-made components.

According to German media reports published in October 2026, French President Emmanuel Macron and German Chancellor Friedrich Merz have reached a preliminary understanding. However, important details remain unresolved, and no final agreement has been approved.

Why France Is Changing Its Position

France previously supported maintaining ambitious emissions targets and accelerating the transition towards electric vehicles. Germany, meanwhile, has advocated greater flexibility for manufacturers facing rising costs and international competition.

The emerging compromise would address both countries' priorities. France would reportedly accept further reductions in the stringency of CO₂ limits, while Germany would support tougher requirements favouring vehicles and components manufactured within Europe.

The arrangement could influence negotiations over the European Commission's proposed automotive legislation, particularly as lawmakers prepare to examine changes to the 2035 rules.

What Could Change After 2035?

Under the original EU framework, new passenger cars were expected to achieve a 100% reduction in tailpipe CO₂ emissions by 2035 compared with 2021 levels.

In December 2025, the European Commission proposed reducing this requirement to 90%, allowing limited continued sales of combustion-engine vehicles.

The remaining emissions would need to be compensated through measures involving low-carbon European steel and cleaner fuels. The reported Franco-German position would go further, potentially lowering the reduction requirement to 80% without the same compensation obligations.

Such changes could create additional opportunities for conventional cars, hybrids and range-extender vehicles.

Stricter Rules For European Manufacturing

In exchange for emissions flexibility, France is seeking stronger European manufacturing requirements through the proposed Industrial Accelerator Act.

Paris wants policies that encourage manufacturers to source components and produce vehicles within the European Union. Germany previously favoured a broader definition that could include trading partners such as Turkey, Morocco and Vietnam. The reported compromise would move Berlin closer to France's position, although possible exceptions, including for the United Kingdom, remain under discussion.

Manufacturers Could Receive More Time

The negotiations also concern interim emissions targets for 2030.

Existing legislation requires manufacturers to reduce average new-car fleet emissions by 55% compared with 2021. The Commission has already proposed allowing manufacturers to meet certain requirements across a three-year period from 2030 to 2032. France and Germany reportedly want to extend this flexibility to five years, potentially reducing the risk of financial penalties during the transition.

Electric Cars Remain A Priority

Despite the proposed concessions, European policymakers continue to support electric vehicle development. The Commission's automotive package includes incentives for smaller, affordable electric cars measuring less than 4.2 metres. Under the proposed system, qualifying vehicles would receive additional weight when calculating manufacturers' fleet emissions. For example, one eligible electric car could count as 1.3 vehicles.

European Commission officials have explained that these incentives are intended to encourage manufacturers to introduce more affordable electric models while maintaining investment in cleaner transport technologies. The wider package also includes €1.5 billion in proposed support for European battery manufacturing.

What Happens Next?

The proposals still require approval from the European Parliament and EU member states. A parliamentary committee vote originally scheduled for 5 October was postponed by approximately two weeks, while a plenary vote is planned for November.

Approval in the Council requires support from at least 15 member states representing 65% of the EU population. The reported agreement between France and Germany could influence these negotiations significantly. For Europe's automotive industry, the central question remains how to balance climate commitments, industrial competitiveness and the affordability of future vehicles.