Currently reading: French government outlines €8bn car industry rescue package
Automotive output will be 'relocalised' with heavy EV incentives and collaboration between key stakeholders
Felix Page Autocar writer
News
2 mins read
27 May 2020

The French government has pledged €8 billion (£7.1bn) to helping the country’s automotive industry to recover following the coronavirus pandemic. 

As part of the rescue package, €1bn (£890 million) will go towards encouraging electric vehicle (EV) adoption, including grants of up to €7000 (£6230). President Emmanuel Macron’s government is committed to keeping France at the forefront of EV development, with plans to produce a million ‘clean cars’ domestically before 2025. 

During a visit to a Valeo factory in northern France, Macron spoke of 'relocalising' domestic automotive production. Renault and the PSA Group - the country’s leading vehicle manufacturers - will work alongside French energy supplier Total to develop batteries for electrified vehicles, he confirmed, and will continue to focus production in France in return for the financial aid. 

"We need a motivational goal: make France Europe's top producer of clean vehicles by bringing output to more than one million electric and hybrid cars per year over the next five years,” Macron is quoted as saying by BBC News. 

It's hoped that the new financial incentives for consumers - including a €3000 (£2670) subsidy for those swapping into a less-polluting vehicle - will help to quickly sell some 400,000 vehicles that have been stuck at dealerships since the beginning of the pandemic. 

Electric cars costing less than €45,000 (£40,000) are now eligible for a €7000 (£6230) grant, up from €6000 (£5340). Plug-in hybrid buyers can claim a €2000 (£1780) subsidy as long as the vehicle is capable of travelling 31 miles on electric power and costs less than €50,000 (£44,500). 

The revised EV incentives - coming into effect on 1 June and running until 31 December - are now applicable to 75% of French households, following a relaxation of the income requirements. 

France’s automotive industry has been particularly hard-hit by the pandemic, with new car sales falling 89% in April as a result of dealerships closing and customers staying at home. The government has stepped in to subsidise the salaries of around 250,000 workers in the industry. 

Macron has also announced that the government won't commit to a €5bn (£4.5bn) loan for struggling Renault until the company’s management had discussed the future of its workforce and factories with union representatives. Talks are set to conclude on Friday, amid reports that the manufacturer is planning to cut 5000 jobs by 2024, axe slow-selling models and potentially close some factories

Additional measures aimed at reviving France's car industry include funding factory upgrade programmes and investing in automotive start-up companies.

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Citytiger 27 May 2020

Meanwhile in other news

we had Richard Branson begging for a handout for one of his companies, whilst launching rockets into space with another.. 

sbagnall 27 May 2020

Big numbers talked about here

Big numbers talked about here .let's see if old boris and his boys can stop jaguar and land rover going bust!!!!! Chinky virus done some damage aint it!??!
jagdavey 27 May 2020

Building cars lot of hassle for min returns.

That's probably why the British companies got out of car building. Not enough profit in it so they sold it all up to Johny Foreigner. I bet the UK government is so grateful that it doesn't have to support a car industry like the French & Germans & Italians do. They have got so many people employed in that sector that their governments have got to prop up car building. The British just sit back & let everyone else do it & not get involved.

Chris C 27 May 2020

jagdavey wrote:

jagdavey wrote:

That's probably why the British companies got out of car building. Not enough profit in it so they sold it all up to Johny Foreigner. I bet the UK government is so grateful that it doesn't have to support a car industry like the French & Germans & Italians do. They have got so many people employed in that sector that their governments have got to prop up car building. The British just sit back & let everyone else do it & not get involved.

Er, which British companies are these? I can't think of one former British car manufacturer that is still in business - they all went bust or got taken over. It's all very well if Johnny Foreigner is left to build car but does anyone remember the monthly Balance of Payments figures?

Tonrichard 27 May 2020

Haven't JLR and McLaren been

Haven't JLR and McLaren been knocking on the Treasury door? I am sure that they will not be the last especially if we also move towards a no deal Brexit with the subsequent imposition of a 10% tariff on imported vehicles and a corresponding tariff on cars we export to the EU. Aston Martin got huge grants to site the plant for the DBX in Wales and all manufactures have become deft in playing countries off against each to bid for the privilege of investing in their country. When the chips are down any pretence of all counties within the EU playing on a level playing field and not favouring their own indigenous companies by giving them subsidies, financial support or showing favouritism goes out of the window. 

Tonrichard 27 May 2020

Haven't JLR and McLaren been

Haven't JLR and McLaren been knocking on the Treasury door? I am sure that they will not be the last especially if we also move towards a no deal Brexit with the subsequent imposition of a 10% tariff on imported vehicles and a corresponding tariff on cars we export to the EU. Aston Martin got huge grants to site the plant for the DBX in Wales and all manufactures have become deft in playing countries off against each to bid for the privilege of investing in their country. When the chips are down any pretence of all counties within the EU playing on a level playing field and not favouring their own indigenous companies by giving them subsidies, financial support or showing favouritism goes out of the window. 

Richard1966 27 May 2020

Italians?

PSA have just taken over the entire Italian car industry, and btw Nissan Sunderland builds more cars than all of the Italian makers put together. (The only volume Italian cars, the Fiat 500 & Panda are built in Poland).

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