UPDATE 1 — France, Germany near deal on car emissions and UK special status

(Updates Oct 15 story on Oct 16 with UK official in paragraph 8) BRUSSELS, Oct 15 (Reuters) — France and Germany are nearing a deal on cars that would water down EU-wide CO2 emission targets for 2035 and open the door for Britain to be treated as a trusted partner under the EU's "Made in EU" rules, diplomats said. The European Commission proposed last year that CO2 emissions from cars should drop by 90% from 2021 levels in 2035, but said automakers would have to close the gap to 100% by using low-carbon steel and alternative fuels. Under the Franco-German plan, which still needs to be confirmed, the target would be set at 90% without the need for any further compensatory measures. The softened target is broadly in line with the wishes of German carmakers. The joint plan also addresses an EU proposal that introduces local-content and low-carbon requirements for products bought through public procurement, public auctions or via subsidy schemes. France has been pushing for these products to be limited to those manufactured in the European Union, while other EU members, including Germany, believe other countries, including those closely linked in automotive supply chains and free trade