This is a disturbing observation when we look at the statistics of car production in France. At the beginning of 2000, there were 3.3 million cars (cars and light commercial vehicles) assembled in France. In 2022, there were only 1.38 million of them. At the same time, auto manufacturing jobs fell from 300,000 to 200,000 over the same period. What happened? This is not new, the automotive sector is experiencing a crisis. From a strategy that once drove sales, we have moved to a strategy that focuses on value. Concretely, this means selling fewer cars, but at a higher price. In order to maximize their margins, despite falling volumes, manufacturers sought to economize on production. And at this level, the position of the French was not the most favorable.

“Made in France” that electricity likes

Car production tax in France is 3.6% of value added according to a 2019 study, in Germany this figure is only 0.5%. So the brands started gradually transfer production to models that give the smallest margin. This is especially true for small models, especially segments A and B Smart Fortwo emigrated from Hambach (57) to China. There Citroën C3 and Peugeot 208 from Poissy (78) to Trnava in Slovakia and Kenitra in Morocco. THE Renault Twingo and Clio from Flins (78) to Novo Mesto in Slovenia and Bursa in Turkey. Fortunately, the Toyota Yaris in Onnaing (59) and the Nissan Micra in Flints (78) remained. However, with the advent of electric cars, they seem to be a trend favorable to the support or return of small models in France. It shows the future of Renault R4 and R5 which will be assembled in Douai and Maubeges (59), like the Micra, also in Maubeges.

Return of Peugeot e-208 to the country?

A change in technology conducive to the “re-industrialization” of France. By 2030, four gigafactories (battery factories) will appear in the North. The government is also encouraging the repatriation of production of certain models to France. According to our colleagues at Echoes, negotiations are underway with Stellantis to return to the country Peugeot E-208, the electric version of the city car Lion. This would mean, for example, to develop more favorable tax regime for manufacturers playing the “Made in France” game. But also review the rules for calculating environmental bonuses for models produced in the territory. Stellantis’ decision is expected by November to make a decision on the possible return of 208 to Poissy?

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