French President Emmanuel Macron expects to soon find an agreement with Germany on protecting the European car industry, a pact that’s set to help along negotiations at European Union level.
The EU is working on a package to foster local production and an exact plan to phase out combustion-engine car sales, though the two key EU carmaking nations have diverged on how to proceed. That made progress difficult on new rules to help back up manufacturers like Volkswagen AG and Renault SA.
“We are currently in the process of finalizing an agreement with our German partners so that Europe can move forward, precisely in order to better protect our industry,” Macron told reporters at the Paris car show on Monday. “This accord is imminent, will allow to get some flexibilities and agreements on European content.”
The haggling centers on a long-time demand from Germany to get more flexibility on the bloc’s CO2 limits for 2035 and allow the industry more leeway on hitting targets. The broad package seeks to protect automotive jobs. Macron hosted executives from the car industry for a dinner on Sunday, including from Germany.
Macron said an agreement could come in coming “days or, if not, of hours.”
Potential progress follows an agreement to curb Chinese exports of hybrid vehicles to the EU.
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