Update: Market Chatter: Key EU Political Groups Reach Deal to Ease Emissions Rules for Auto Sector

11:16 PM EDT, 10/20/2026 (MT Newswires) -- (Updates with S&D's statement) Lawmakers from key political groups in the European Parliament reached an agreement on proposed changes that would ease emissions rules for the automotive industry, Bloomberg News reported Tuesday. Under the proposed deal agreed by the European People's Party, S&D and Renew Europe, BMW (BMW.F), Stellantis (STLAM.MI, STLAP.PA), Volkswagen (VOW.F, VOW3.F) and other European automakers would be required to reduce emissions by 87.5% by 2035, the news outlet said, citing a document it saw. An additional 7.5% will be offset by using green steel. In an emailed statement to MT Newswires, the EPP Group Chairman Manfred Weber described the deal as a success for the sector. "We are giving European carmakers the flexibility they need to compete globally and drive innovation forward. The ban on the internal combustion engine is off the table. This is good news for hundreds of thousands of workers in the European automotive industry," Weber said. Meanwhile, a spokesperson for the S&D Group president said there is no final deal on the automotive package yet and a final vote in plenary is not expected before December. The spokesperson added that approval of the automotive package is conditional on an agreement on the Industrial Accelerator Act. The Renew Europe political party did not immediately respond to MT Newswires' request for comment. (Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)