France, Germany strike bargain on Made in Europe, car emissions

France and Germany agreed to require local content for EU-made cars while softening the 2035 emissions cut to 90% and dropping offset requirements. The pact lowers compliance costs for legacy automakers and extends the combustion-engine runway, aiding European auto equities and suppliers while pressuring pure-EV and battery chains. Near-term reaction stays sector-specific, with limited spillover to broad indices pending EU legislative approval and UK-Swiss scope details.