On 16 October France and Germany reached an agreement on a common approach to the future of the European automotive industry. According to the Financial Times, the compromise would move beyond the 2035 climate-neutrality target, keeping new combustion-engine cars on the market after that date, and would reserve subsidies and public procurement for vehicles made in Europe: the so-called «Made in Europe».
On the trade front, the EU and China agreed to limit Chinese exports of hybrid and plug-in hybrid cars: according to Trade Commissioner Maroš Šefčovič, they could fall by more than half compared with projections for the next four years. In return Beijing cuts tariffs on €4 billion worth of European goods and eases export licences for rare earths and magnets.
For Hungary, where the manufacturing recovery rests on the production ramp-up of BMW, BYD and CATL, the two issues meet: the 2035 rules decide which engines will be built, the «Made in Europe» rules which cars will qualify for incentives and public contracts. For the Italian supply chain in the country, this is the framework for planning the next investments.
