Germany and France Water Down EU CO2 Car Targets, Shaping Auto Industry and Jobs
Key Reactions to the Germany-France EU CO2 Car Deal
Oct 16 (Reuters) - France and Germany have struck a deal on cars to water down EU-wide CO2 emission targets for 2035 and open the door for Britain to be treated as a trusted partner under the EU's "Made in EU" rules, the two countries said on Friday.
Overview of the Deal
Below are some comments on the deal:
German Political Leaders Respond
Friedrich Merz, Chancellor of Germany on X
"A good day for motorists and for jobs in Germany, France and Europe. @EmmanuelMacron and I have agreed on a package covering freedom of choice, technology openness and the safeguarding of climate targets. This sends a pro-investment signal to the industry."
Lars Klingbeil, German Finance Minister
"We have made the right decisions for the hundreds of thousands of employees and the sites of the German automotive industry. We have ensured that domestic production will be strengthened. That means: more 'made in Germany' and 'made in Europe.' We do not want Germany to merely assemble components from Asia, but rather to have key components developed and produced here."
"Now it is the economy's turn. Our expectation is very clear: automobile manufacturers have a responsibility to invest in the future of German sites and to secure jobs."
Swantje Michaelsen, German Greens MP Specialising in Transport Policy
"The federal government is holding back the German automotive industry instead of supporting it. It is not the end of the internal combustion engine that is outdated, but the chancellor's assumptions. He is negotiating the future of the auto industry without taking current market trends sufficiently into account and, apparently, without consulting his coalition partner."
"Anyone who weakens the 2035 targets now creates new uncertainty and jeopardizes the competitiveness of the German auto industry. Anyone who slows down electric mobility today risks falling behind tomorrow. Germany must shape this transformation instead of holding it back."
Olaf Lies, Premier of German State Lower Saxony, Second-Largest Shareholder in Volkswagen
"The agreement between Chancellor Merz and President Macron sends a strong signal to the automotive industry in Europe, and it is encouragingly clear-cut. For us, one thing is key: it secures jobs—at manufacturers, among suppliers, and at our plants in Lower Saxony. At the same time, it strengthens future markets such as batteries and green steel, which are already emerging today, particularly in Salzgitter."
"And a second point is important to us: We are strengthening "Made in Europe." If government subsidies and public contracts are linked to European value creation in the future, production and value creation will remain right here with us. With a 90 percent reduction in CO₂ emissions without an obligation to offset, the 2035 target also becomes realistic."
Industry and Advocacy Group Responses
Toyota's European Division
"We welcome any discussion on the inclusion of the UK but we would like to see this deal expanded to other trusted partners — such as Turkey and Japan — whose continued close collaboration can support European competitiveness in the automotive industry. Critical future investment considerations, like the current battery production study, would benefit from wider inclusion."
Anna Krajinska, Senior Director for Vehicles and Industrial Transformation at T&E
"Germany and France are making a historic mistake. German and French political leaders claim they are acting to save jobs, but this may well be the deal that buries Europe's auto industry."
"Europe needs to rapidly cut its dependence on imported oil, deliver affordable EVs and give industry a clear reason to invest in electric cars and their supply chains. This is crucial for delivering good quality jobs for Europeans."
"Yet this agreement drastically slows down on EV sales and takes the teeth out of the Industrial Accelerator Act. The car CO2 standards and the IAA are the last chance to halt the decline of Europe’s auto manufacturing, with this agreement, it is impossible to see how this will be achieved."
Reporting Credits
(Reporting by Reuters, compiled by Basile Day in Gdansk; Editing by Tasim Zahid)
