Overview
- Brussels has postponed a definitive decision on the 2035 phaseout of new combustion and hybrid car sales, with reports indicating a two-step announcement on EV rules next week and local-content measures in January.
- A December 8 letter from five French ministers backs targeted flexibilities tied to incentives for producing vehicles and components in Europe.
- Paris proposes industrial-origin criteria that would require at least 75% of a vehicle’s value added to be created in the EU and preferential regulatory treatment for EU-made electric models.
- Industry and political camps remain split, with Germany, Italy and several Eastern member states pressing for broader relief such as allowing plug-in hybrids after 2035 and friendlier rules for synthetic and biofuels.
- France argues for minimal deviation from the electrification trajectory to protect recent investments and anchor strategic components like batteries, motors and electronics in Europe.