Over €8 billion to save French auto industry

France
Published:  27 May, 2020

On May 26, the French President Emmanuel Macron unveiled the plans for an aid scheme to rescue the French automotive sector, with particular focus on electric and hybrid vehicles.

The financial package to help save the French automotive sector has been estimated at more than €8 billion. During his speech at car equipment manufacturer Valéo in Etaples, northern France, Emmanuel Macron said he wanted "to make France the leading producer of clean vehicles in Europe” and that one of the objectives of this "sovereignty and industrial transformation plan” is to produce more than one million electric, hybrid-rechargeable and hybrid cars annually in France by 2025.

Among the measures, Macron said that consumers will benefit from a €7,000 reduction on the purchase of an electric car or €2,000 for a hybrid-rechargeable model. The scrapping bonus will also be reinforced, but it will only concern 200,000 vehicles, new or used, which will be purchased from June 1. The incentives will be €5,000 for an electric car and €3,000 for a vehicle that meets the latest European pollution standards. The French president also affirmed that to support the development of electric vehicles in France, 100,000 charging stations would be in operation throughout the country by 2021.

Macron also announced investments and subsidies for the whole industry, manufacturers and subcontractors, to develop industry 4.0 so as to enable the relocation of value-added vehicles to be produced in France. During his speech, the French President welcomed Peugeot's commitment to produce the electric version of its 3008 SUV at its historic site in Sochaux, eastern France.