Dec 5, 2025
France urges the EU to back domestic electric vehicle production in the auto aid agreement.
France is urging the European Union to establish regulations that mandate automakers to manufacture electric vehicles within the region, as various proposals are being presented during the bloc's review of CO2 emissions from vehicle fleets.
President Emmanuel Macron's administration aims for 75 percent of the parts used in electric vehicles sold in Europe to be sourced locally, aligning with current content requirements for internal combustion engine cars, as stated by the finance ministry on December 3. France has already initiated plans to promote locally manufactured electric vehicles.
The proposed "made in Europe" regulations seek to prevent significant job losses in the automotive sector and to maintain public support, according to an official statement.
However, not all automakers support local sourcing regulations. BMW CEO Oliver Zipse expressed opposition to mandatory localization quotas, arguing that Europe's competitive edge lies in its global connections. He cautioned that strict localization rules could undermine this advantage, as stated at an event in Brussels on December 2.
In response to competition from Chinese manufacturers, France’s finance ministry emphasized the need for "proportionate" protection for Europe’s automotive industry, particularly for suppliers.
The ministry indicated a willingness to negotiate, stating that France is open to flexibility regarding the technologies used to meet CO2 reduction goals while ensuring a competitive industrial value chain remains in the region.
Previously, France aligned with Spain in advocating for the EU to adhere to its planned 2035 targets, which would permit only the sale of zero-emission vehicles, effectively phasing out internal combustion engines. This stance has raised concerns among labor unions about potential factory closures due to slower-than-anticipated demand for electric vehicles.
Germany and Italy are actively pushing for a dilution of the ban on internal combustion engines. German Chancellor Friedrich Merz stated on November 31 that his coalition seeks to allow plug-in hybrids and highly efficient conventional vehicles beyond 2035.
The European Commission was expected to announce a relief package for the automotive industry on December 10, but a source from the German car industry indicated that this announcement might be postponed.
A gradual transition to electric vehicles has left many automakers facing overcapacity issues, leading the industry to advocate for modifications to the EU’s plan to prohibit new sales of vehicles with tailpipe emissions by 2035.
Volkswagen Group plans to eliminate over 35,000 jobs by the decade's end, while Renault in France is restructuring operations that may result in layoffs.
President Emmanuel Macron's administration aims for 75 percent of the parts used in electric vehicles sold in Europe to be sourced locally, aligning with current content requirements for internal combustion engine cars, as stated by the finance ministry on December 3. France has already initiated plans to promote locally manufactured electric vehicles.
The proposed "made in Europe" regulations seek to prevent significant job losses in the automotive sector and to maintain public support, according to an official statement.
However, not all automakers support local sourcing regulations. BMW CEO Oliver Zipse expressed opposition to mandatory localization quotas, arguing that Europe's competitive edge lies in its global connections. He cautioned that strict localization rules could undermine this advantage, as stated at an event in Brussels on December 2.
In response to competition from Chinese manufacturers, France’s finance ministry emphasized the need for "proportionate" protection for Europe’s automotive industry, particularly for suppliers.
The ministry indicated a willingness to negotiate, stating that France is open to flexibility regarding the technologies used to meet CO2 reduction goals while ensuring a competitive industrial value chain remains in the region.
Previously, France aligned with Spain in advocating for the EU to adhere to its planned 2035 targets, which would permit only the sale of zero-emission vehicles, effectively phasing out internal combustion engines. This stance has raised concerns among labor unions about potential factory closures due to slower-than-anticipated demand for electric vehicles.
Germany and Italy are actively pushing for a dilution of the ban on internal combustion engines. German Chancellor Friedrich Merz stated on November 31 that his coalition seeks to allow plug-in hybrids and highly efficient conventional vehicles beyond 2035.
The European Commission was expected to announce a relief package for the automotive industry on December 10, but a source from the German car industry indicated that this announcement might be postponed.
A gradual transition to electric vehicles has left many automakers facing overcapacity issues, leading the industry to advocate for modifications to the EU’s plan to prohibit new sales of vehicles with tailpipe emissions by 2035.
Volkswagen Group plans to eliminate over 35,000 jobs by the decade's end, while Renault in France is restructuring operations that may result in layoffs.