France, Germany push China on hybrid car exports after deal

Key facts

• France and Germany agreed on a deal to boost Europe's auto industry.
• The agreement aims to cut carbon emissions and support European production.
• The deal includes incentives for investment, research, and development.
• A 90% CO2 emission reduction target for cars by 2035 is proposed.
• Cars running on renewable fuels may count as 'zero-emission'.
• The 'Made in EU' label could include the UK.

France and Germany have reached an agreement to bolster Europe's struggling automobile industry and potentially influence China's hybrid car exports. French Trade Minister Nicolas Forissier stated his certainty that the joint push for a more stringent EU policy towards China was a factor in Beijing moderating its hybrid car export strategy. The deal, announced on Friday, October 16, 2026, aims to cut carbon emissions and support the development and manufacture of electric cars within Europe. It also includes incentives for investment, research, development, and resilient supply chains. The agreement still requires approval from other EU states and the European Parliament.