French-German Auto Position Needs Flexibilities, ACEA Says

BRUSSELS — The European Automobile Manufacturers' Association (ACEA) has given a cautious welcome to the new French-German auto position on the EU's car emission rules, calling it a step forward while warning that critical flexibilities are still missing. The French-German auto position, a joint paper titled "Securing the future of the European automotive industry" published October 16, is meant to accelerate negotiations on the EU's "Automotive Package." The association said the paper rightly reaffirms technology neutrality and sets a more manageable direction for 2035, but fails to propose win-win flexibilities to help carmakers meet CO2 targets. Chancellor Friedrich Merz and President Emmanuel Macron agreed the 2035 fleet-emission reduction should be limited to 90 percent compared with 2021 levels, without any obligation to offset the remaining 10 percent. That goes beyond the European Commission's December 2025 proposal, which demanded a 90 percent cut plus offsets through measures such as low-carbon European steel, e-fuels or biofuels. ## ACEA welcomes parts of the French-German auto position In its October 16 statement, the association acknowledged the efforts behind the French-German auto position paper and praised its incentives for "made in the EU" cars under the CO2 Regulation. The association, which represents Europe's major carmakers, said the text sets a more realistic course for 2035 than the current law's effective ban on new combustion-engine cars. The association will now study the paper in detail and continue liaising with EU co-legislators on what it calls critical points. ## Key flexibilities missing from the French-German auto position ACEA's main complaint is what the paper omits. The association wants carmakers to be able to offset emissions using low-carbon materials at full potential, and to start fleet averaging in 2028 to accelerate the ramp-up of battery-electric vehicles ahead of the 2030 CO2 targets. Without such tools, the association argues, manufacturers face heavy fines even as they invest billions in electrification. Brussels will now weigh the French-German auto position against the Commission's original proposal. The paper's proposal on the Industrial Accelerator Act — with its narrow geographical scope and 80 percent fleet-wide target — is highly ambitious, the association said, noting that the value added by vehicle manufacturers is still not sufficiently recognized. ## Vans and heavy trucks need distinct rules The French-German auto position overlooks other vehicle segments, the association warned. The challenges of the battery-electric ramp-up in vans require a revised 2030 target and two averaging periods, covering 2025–2029 and 2030–2034. For heavy-duty vehicles, the proposal disregards value chains depending on Customs Union partners and ignores the need for a separate timeline for battery localization — trucks and buses need their own distinct approach to "made in the EU" compliance, the association said. Volkswagen welcomed the Franco-German deal as providing "meaningful flexibilities," while Germany's VDA industry group said it still falls short on battery localization and heavy-vehicle rules. ## What the EU 2035 car ban debate means for U.S. drivers The EU 2035 car ban fight matters beyond Europe. American automakers selling in Europe must plan around whatever CO2 targets emerge, and the outcome will influence global product decisions — including which electrified models reach U.S. showrooms. The Franco-German push also reflects pressure both continents feel from Chinese competition and U.S. tariffs, which Berlin has cited in lobbying for more time. How the French-German auto position fares in EU negotiations will determine which electrified models reach showrooms on both sides of the Atlantic. The association says it wants a framework reconciling decarbonization, economic resilience and job preservation. Whether EU lawmakers agree will shape the cars Americans and Europeans drive for decades.