France and Germany strike a deal on the future of Europe’s car industry

France and Germany have reached an agreement on the future of the automotive industry after weeks of talks over the electric transition and European rules. Their shared goal is to support European carmakers without slowing the shift toward lower emissions.

The deal comes at a delicate moment for the market: weak demand, high costs and growing Chinese competition are putting pressure on manufacturers. For Italy, the issue is highly relevant because Paris and Berlin’s choices will also influence investments, supply chains and the strategies of major groups operating in the country.