Automobile: Emmanuel Macron’s 8 billion rescue plan

With the Coronavirus crisis, the French automotive sector, already struggling for a few years, was hit hard. Also, the French government has just unveiled a rescue plan. Here are the details of these aids.

It should not be believed that the Coronavirus pandemic was the only cause of the crisis affecting the French automotive sector. The car industry has not been in its best shape for a few years, in particular the concern to respect the CO2 emissions imposed by the European Commission under penalty of large fines. Also, we can say that the year 2020 was not already looking good. But since the confinement of March 17, the French automobile market has collapsed by 72.2% in March and 89% in April. Or a 48% drop since the start of the year. (source PFA)

The government therefore had to react quickly by coming to the aid of an industrial sector which has 400,000 direct jobs out of the 900,000 that make up the whole.

It is from the factory of the French equipment supplier Valeo d’Étaples (Hauts de France) that the President of the Republic, Emmanuel Macron, announced his rescue plan in the amount of 8 billion euros to support the whole of this French industry. Part of this aid, in particular for French manufacturers and equipment

This plan revolves around three objectives: supporting companies in the sector, boosting purchasing demand and investing in innovations: ( Airbus batteries , charging stations, hydrogen sector ).

The president began his speech by wishing “to make France the first nation producing clean vehicles in Europe “, with the objective of producing more than one million electrified vehicles (electric, hybrid and plug-in hybrid vehicles). Moreover, the objective of installing 100,000 charging stations by the end of 2022 has been reduced to the end of 2021.
Currently, there are 30,000 public charging points across France, according to Cécile Goubet, Secretary General of the Avere, association promoting electric mobility.

Now is the time to buy!

There are currently 400,000 cars in stock (9 out of 10 of which are petrol). And we will have to sell them. As Emmanuel Macron insisted, ” our fellow citizens must buy more vehicles and in particular clean vehicles, not in two, five or ten years. Now .” In fact, as of June 1, incentives have been put in place or revised upward, in order to restore confidence in the French.

Thus, the ecological bonus – the cost of which is estimated at 500 million euros – is reinforced:

  • 6,000 to 7,000 € for individuals, on the sole condition that the desired vehicle does not exceed 45,000 euros;
  • € 3,000 to 5,000 for businesses.

Finally, a small novelty expected, an ecological bonus of € 2,000 for buyers of a plug-in hybrid vehicle (plug-in or PHEV in English).

The conversion bonus, which is still just as popular, is extended to households with incomes below € 18,000 / year. This is additional aid – in addition to the ecological bonus – paid if the individual brings back a vehicle polluting petrol or diesel:

  • € 5,000 for the purchase of an electric vehicle;
  • € 3,000 to 5,000 for the purchase of a hybrid vehicle;
  • € 3,000 for the purchase of a thermal vehicle;
  • € 3,000 for the conversion of a thermal vehicle into an electric vehicle.

The objective is 200,000 bonuses (estimated cost between 600 and 800 million €). Since the implementation of this aid, 376,000 bonuses have been paid to date (source BFMTV).

No blank check without consideration

The 8 billion aid to the French automotive sector is by no means a blank check. This financial assistance will be subject to conditions. Thus, ” the manufacturers have taken in return a series of strong commitments which consist in relocating value-added production in France and in consolidating and maintaining industrial production on our sites “, declared the President of the Republic.

Is indirectly targeted Renault whose loan of 5 billion euros granted by the State was conditional on the maintenance of the activity of the factories of Maubeuge and Douai.

In addition, Renault will return to the capital of the joint venture between PSA and Saft (Total) in the construction of an ” Airbus of the battery “. Happiness never comes alone, Renault has announced that the next 100 kW electric motor, initially manufactured in Asia, will ultimately be produced at the Cleon plant. Nissan will appreciate…

As for PSA, the Peugeot 3008 SUV will be produced in Sochaux.

Finally, the French government will help to create an investment fund to help the automotive industry, up to 600 million euros including 400 million from his pocket.

This rescue plan has been welcomed by the sector which considers that it ” responds to the gravity of the situation “, according to Luc Chatel, the president of the Automobile Platform (PFA).

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