Macron announces plan to rescue French auto industry
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French President Emmanuel Macron on Tuesday unveiled a plan worth €8 billion ($8.8 billion) to save the country’s car industry from huge losses wrought by virus lockdowns, including a big boost for electric vehicles.
“Our country wouldn’t be the same without its great brands – Renault, Peugeot, Citroen,” Macron declared, and announcing a goal of making France the leading producer of “clean” cars in Europe.
The 8 billion euros does not include a 5 billion-euro government loan guarantee under discussion for struggling Renault, or the millions the government has already spent on temporary unemployment payments to auto workers told to stay home for weeks to keep the virus at bay.
Finance Minister Bruno Le Maire has said that carmakers must commit to bringing back manufacturing to France in exchange for the support, but unions are wary as the industry is in turmoil.
The aid is expected to include government subsidies for consumers to buy a battery-powered car as well as other incentives for people to scrap their old car and buy a lower-emissions model.
As carmakers around the world face record slumps in sales, Macron met with industry representatives and unions at the Elysee presidential palace on Tuesday morning, notably to discuss the loan guarantee for Renault. He then visited supplier Valeo, which makes equipment for electric cars, at its factory in northern France, from where he detailed the wider rescue plan.
The issue is politically sensitive, since France is proud of its auto industry, which employs 400,000 people in the country and is a big part of its manufacturing sector. The government wants carmakers to develop innovative products in France and keep jobs in the country.
