EU member states are pushing back against a Franco-German pact that would scrap the planned 2035 ban on internal combustion engines (ICE), according to a Bloomberg report dated 6 November. The resistance turns on one number: Chinese brands BYD and Chery Automobile captured 14.5% of total European vehicle sales last month.

Germany and France agreed their common position last month. The pact dilutes the EU's climate-neutrality targets for passenger cars, supports domestic manufacturing, and contains no requirements for offsets or compensation.

The states opposing the deal want a more ambitious electric vehicle (EV) transition. They argue that only tighter regulation can counter the market-share gains of Chinese competitors, which reached 14.5% of European sales in the most recent month on record.

What does Ireland's compromise propose?

Ireland, which leads the negotiations on the dossier, has circulated a compromise plan to bridge the divisions. The Irish draft sits between the European Commission's original proposal and the Franco-German agreement.

Under its terms:

• Passenger vehicle emissions must fall 90% by 2035, against the original 100% target.
• Carmakers must offset the remaining 10% through fuel mechanisms and credits for low-carbon steel and aluminium.
• Manufacturers facing 2030 car emissions targets and 2025 van standards receive compliance flexibilities.

"The Irish presidency is committed to reaching agreement on CO2 standards for cars and vans. This is a complex proposal and we are working with member states toward a compromise agreement," a spokesperson for the presidency said.

Where does the Commission stand?

EU Climate Commissioner Wopke Hoekstra said last month that continued regulatory targets offered the best protection for European industry. He cited higher fuel costs and recovering EV sales volumes as evidence that the targets work.

His position puts the Commission closer to the opposing states than to Berlin and Paris. The Franco-German initiative sought to ease compliance for Volkswagen, Stellantis, Renault, and tier-one supplier Valeo (a company that supplies components directly to carmakers).

Valeo has implemented job cuts and site closures while contending with low-cost competition from BYD and SAIC Motor's MG brand. Those pressures shaped the Franco-German case for softer targets.

What happens next?

Ambassadors meet on 11 November to discuss three proposals: the Commission's original text, the Franco-German pact, and the Irish compromise. Their discussion prepares the ground for trialogue talks (three-way negotiations between Parliament, Council, and Commission).

The European Parliament will vote by year-end. Its environment committee has already backed a 95% emissions-reduction target for new passenger cars by 2035, allowing up to 7.5% of the requirement to be met through green steel credits.

The spread between the positions is now quantifiable. The Commission demanded 100%, Parliament's committee wants 95%, Ireland proposes 90%, and the Franco-German pact removes the 2035 engine ban outright. Which number survives the trialogue will decide the shape of Europe's car industry — and its answer to the 14.5% Chinese market share.