Merz 'Surprised' by Asian Pushback to Franco-German Made in Europe Car Plan
Merz says the Franco-German “Made in Europe” car plan “sparked considerable concern” in Singapore, Japan and South Korea. He will raise it at the Nov. 13 EU summit.
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German Chancellor Friedrich Merz says Asian pushback against a Franco-German “Made in Europe” car plan surprised him. He said it “sparked considerable concern” in Singapore, Japan and South Korea.
Merz spoke to reporters on Friday evening, Oct. 30, as he ended a five-day Asia trip. He promised to raise the complaints at the EU leaders’ informal summit in Dublin on Nov. 13.
Politico first reported the remarks. The quotes below are Politico’s English translation, and we could not check the original German.
What Merz Said
“That was, in fact, a topic that surprised me a bit, given the intensity with which it was presented,” Merz said. Note that he said “a bit.”
He admitted concern that Europe faces “a new wave of protectionism.” Politico also quotes his fear that “we are closing ourselves off from other countries.” He vowed to take the complaints “very seriously.”
Japan’s NHK reported he would also share the concerns in Berlin and Brussels. Its English wording of his quote differs slightly from Politico’s.
What the Franco-German Plan Does
Paris and Berlin struck the deal on Oct. 16, on the sidelines of an EU summit. Germany accepted stricter “Made in Europe” rules for cars. France backed softer 2035 emissions targets.
Under the Commission’s Industrial Accelerator Act, public money would favor European-made cars. The deal cuts the 2035 target to 90% instead of 100%, without offsets for the remainder.
From 2028, 70% of non-battery components and 10% of battery content would have to be European. The EU, plus the UK and Switzerland under conditions, would qualify.
The deal is a Franco-German proposal. It still needs approval from other EU governments and the European Parliament.
Seoul and Tokyo Push Back
South Korea’s president told reporters he had “asked Merz for support.” He wants Korea “treated like the EU member states.” A similar complaint came from Japan.
Japanese Prime Minister Sanae Takaichi pressed Merz in Tokyo on Oct. 28 not to leave Japan out, Nikkei Asia reported. The FT reported that Japan, South Korea and Turkey are not covered by the draft.
We found no official statements from Singapore or China on the car rules.
Carmakers and Brussels
Germany’s VDA car lobby says the deal falls short. It wants a wider list of eligible countries and battery localization delayed until 2031.
German engineering and digital lobbies warned Merz in a letter that a strict definition risks retaliation. EU industry chief Stéphane Séjourné backed the deal as a way to break the impasse, Politico reported.
A Trade Alliance With a Snag
In speeches in Seoul and Tokyo, Merz proposed a “global political alliance for rules-based trade” among middle powers. Politico says the car dispute shows how industry frictions can hamper that idea.
Merz also warned that the Iran war has cost Europe over €100 billion on the same trip.
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