Coronavirus: France announces €8bn rescue plan for car industry

President Emmanuel Macron wants France to become the top producer of clean vehicles in Europe.

The French government has announced an €8bn (£7.1bn) rescue plan for its car industry, which has been severely impacted by the coronavirus pandemic.

President Emmanuel Macron's proposal includes €1bn to provide grants of up to €7,000 to encourage citizens to purchase electric vehicles.

It also puts money toward investments to make France a centre for electric vehicle output.

The plan comes as the industry braces for thousands of job cuts.

In return for the relief, the two main French car producers Renault and PSA have promised to focus production in France. 

"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," President Macron told reporters at a press conference at the Valeo car factory in Etaples, northern France on Tuesday.

He added that no car model currently produced in France should be manufactured in other countries.

To help sell the 400,000 vehicles languishing in car dealerships due to the coronavirus lockdown measures, President Macron said the government would also give people upgrading to a less polluting car a €3,000 bonus, as part of a scheme open to 75% of French households.

"Our fellow citizens need to buy more vehicles, and in particular clean ones. Not in two, five or 10 years - now," he stressed.

Like in other countries, France's car industry has ground to a halt - with an 80% fall in sales and a backlog of nearly half a million new vehicles waiting for owners.

President Macron - in his new post-virus spend-and-invest mode - wants to act now not just to rescue the industry from the immediate crisis, but also to prepare it for a future that will be both electric and he hopes much less dependent on foreign and in particular Chinese suppliers.

 

To boost demand now, the grants for households or companies that buy new electric cars are increased, as is the so-called conversion bonus for trading in a polluting car for a cleaner one.

The number of battery charge-points will be tripled to 100,000 by the end of next year.

A billion euros in investment will be directed into research and modernising production, and there'll be a €5bn loan for Renault - part of the return for which is a promise by Renault to join a Franco-German consortium to develop car batteries.

The aim, Mr Macron said, is to have one million electric cars being made in France every year by 2025.

According to IHS Markit, France was Europe's top producer of electric and hybrid cars in 2019, with almost 240,000 vehicles, but Germany is set to overtake it by the end of this year.

Factory closures

The €8bn plan does not include an expected €5bn loan for embattled French carmaker Renault, which in February reported its first annual loss in a decade.

The company has been planning to unveil a big restructuring plan on 29 May that was reportedly likely to see it close three factories in Choisy-le-Roi, Dieppe and Caudan. A fourth factory, Flins, will be converted into an electric battery factory.

Mr Macron said on Tuesday that Renault had agreed to join a Franco-German project to produce electric batteries for the rechargeable auto industry, a step the government had set as a condition for the loan.

But Mr Macron said the government would not sign off on the deal until Renault's management and unions had concluded talks over the carmaker's French workforce and plants in France.

Mr Macron only guaranteed the future for employees of Renault's factories in Mauberge and Douai, however. And French daily national newspaper Le Figaro reported exclusively on Tuesday that Renault is planning to cut 5,000 jobs by 2024.

The 370 employees that work at the Fonderie de Bretagne, near Lorient in north-western France, are concerned that the carmaker intends to close the factory.

They have been protesting since Monday, blockading the factory, and told French national radio network Europe 1 that they intend to march on the streets of Lorient on Wednesday. BBC

 
 

Other News

.
Hoa Binh: attractive destination for investors
Hoa Binh: attractive destination for investors
BUSINESSicon  04/11/2021 

In an effort to attract investment, especially from the start-up community and young entrepreneurs, the authorities of Hoa Binh province have issued special incentive policies.

Vietnam Airlines officially receives FAA permit to run direct flights to US
Vietnam Airlines officially receives FAA permit to run direct flights to US
BUSINESSicon  16/11/2021 

National flag carrier Vietnam Airlines on November 16 officially received a permit from the US Federal Aviation Administration (FAA) to operate non-stop commercial flight service between Vietnam and the US.

Mekong Delta has some 2.5 million tons of rice left for export
Mekong Delta has some 2.5 million tons of rice left for export
BUSINESSicon  16/11/2021 

With the local rice demand taken into account, the Mekong Delta region has some 2.5 million tons of rice left in November and December that can be exported.

Vietnam-South Korea bilateral trade to hit $70 billion this year
Vietnam-South Korea bilateral trade to hit $70 billion this year
BUSINESSicon  17/11/2021 

The bilateral trade turnover between Vietnam and South Korea reached $63.4 billion in the first 10 months of 2021 and is likely to exceed $70 billion by the end of the year.

Green economy absorbs in green consumption behaviors
Green economy absorbs in green consumption behaviors
BUSINESSicon  16/11/2021 

Countries in the world have been making efforts to demonstrate their commitments to the climate change battle with the aim to minimize negative impacts on ecosystems and develop a green economy.

Retail revenue likely up 3-4% by year-end, compared to 2020
Retail revenue likely up 3-4% by year-end, compared to 2020
BUSINESSicon  16/11/2021 

Thanks to an expected upturn in retail demand between now and the end of the year, the total revenue for 2021 is expected to have grown by three to four per cent, when compared with the previous year. 

Several listed foreign firms report lower profits and losses in 2020
Several listed foreign firms report lower profits and losses in 2020
BUSINESSicon  16/11/2021 

The majority of foreign-invested enterprises listed on Vietnam's stock market either posted lower after-tax profits or losses in 2020 due to the impact of the COVID-19.

VIETNAM BUSINESS NEWS NOVEMBER 16
VIETNAM BUSINESS NEWS NOVEMBER 16
BUSINESSicon  16/11/2021 

Foreign paper hails Vietnam as economic success story

Vietnam Airlines’s additional shares to be officially traded from Nov. 19
Vietnam Airlines’s additional shares to be officially traded from Nov. 19
BUSINESSicon  15/11/2021 

The Ho Chi Minh Stock Exchange (HoSE) has announced the additional listing of nearly 800 million shares of Vietnam Airlines Corporation, coded HVN, from November 15.

E-commerce promotes Vietnam's digital economy
E-commerce promotes Vietnam's digital economy
BUSINESSicon  16/11/2021 

While tourism has been hit hard by Covid-19, e-commerce has become the driving force for the digital economy in Vietnam this year.

HCM City distribution chains ensure food supply
HCM City distribution chains ensure food supply
BUSINESSicon  16/11/2021 

Nearly 1,600 workers at a supermarket chain tested positive for coronavirus when the fourth Covid wave in HCM City reached its peak over the summer. One of them died.

Farm exports to EU must follow food hygiene requirements: experts
Farm exports to EU must follow food hygiene requirements: experts
BUSINESSicon  16/11/2021 

After one year of EVFTA (EU-Vietnam Free Trade Agreement) implementation, Vietnam’s farm exports to the EU have increased sharply.

Four ‘economic commanders’ at NA forum share their vision about stimulus package
Four ‘economic commanders’ at NA forum share their vision about stimulus package
FEATUREicon  15/11/2021 

All four ministers of economy-related fields were asked to answer inquiries at the last National Assembly session, a rare occurrence in Vietnam.

Railway goods transport between Vietnam, China surges
Railway goods transport between Vietnam, China surges
BUSINESSicon  15/11/2021 

The total volume of goods traded between Vietnam and China going through the two border-gate railway stations of Lao Cai and Dong Dang reached more than 838,000 tonnes in the first nine months of 2021, up 43 percent year-on-year.

2021's profit outlook mostly reflected in stock prices: FiinGroup
2021's profit outlook mostly reflected in stock prices: FiinGroup
BUSINESSicon  15/11/2021 

The Vietnamese stock market’s valuation is equivalent to 18.2 times 2021’s profit and 14.3 times 2022’s profit forecast, said Fiin Trade, showing that the profit prospects for 2021 are reflected in share prices.

VN's growth and recovery require strong public investment: economists
VN's growth and recovery require strong public investment: economists
BUSINESSicon  15/11/2021 

Financing public investment to generate future growth and to speed up economic recovery post-COVID-19 remained Vietnam's most important challenge in the near future, said economists and policymakers. 

VIETNAM BUSINESS NEWS NOVEMBER 15
VIETNAM BUSINESS NEWS NOVEMBER 15
BUSINESSicon  15/11/2021 

More effective use of trade remedy tools needed when joining FTA: experts

Nursing home market nascent in Vietnam: Savills
Nursing home market nascent in Vietnam: Savills
BUSINESSicon  15/11/2021 

Demand for “housing with care” – a range of residential formats (which often provide care services) for older people – is increasing, but the market remains almost untouched in Vietnam, according to property consultancy Savills Vietnam.

Online shopping in VN to soar by year-end
Online shopping in VN to soar by year-end
BUSINESSicon  15/11/2021 

 Online shopping in Vietnam is expected to increase sharply near the end of the year. 

Market looks for new sources of goods as divestment from state enterprises proceeds
Market looks for new sources of goods as divestment from state enterprises proceeds
FEATUREicon  16/11/2021 

The situation changed in a positive direction when the stock market and and stock prices went up. This will enable divestment from SOEs and the equitization process to take place more easily.

 
 
 
Leave your comment on an article

OR QUICK LOGIN