The electric car in pole position of the automobile recovery plan in France

The President of the Republic intends to make France the European champion of clean vehicles thanks to a plan of 8 billion euros intended to support and modernize the automotive sector by focusing on the electric and the hybrid.

Emmanuel Macron presented Tuesday “a historic plan” to rescue the automotive industry , strongly affected by the coronavirus crisis , and modernize it to make France a champion of electric vehicles . “The State will provide a little more than 8 billion euros in aid to the sector”, said the Head of State while delivering a speech in a factory of the equipment manufacturer Valeo in Etaples (Pas-de-Calais) .

The objective is to “make France the first nation producing clean vehicles in Europe by bringing to more than one million per year within five years the production of electric vehicles, plug-in hybrids or hybrids” in the country, he said. he announced, alongside the ministers of the ecological transition Elisabeth Borne and the economy Bruno Le Maire.

Up to 7,000 euros in ecological bonus for the purchase of an electric car

To boost sales, which plummeted during the crisis, Emmanuel Macron announced an increase in the ecological bonus to 7,000 euros for the purchase of electric vehicles by individuals and to 5,000 euros for businesses, as well as the creation of a bonus 2,000 euros for plug-in hybrids .

There are also plans to strengthen the conversion bonus scheme which benefits low-income households for the purchase of a new vehicle against the scrapping of an old vehicle. “An individual who discards his vehicle polluting diesel or petrol” will receive aid of 3,000 euros, increased to 5,000 euros in the event of the purchase of an electric vehicle, he explained. According to the Head of State, “three quarters of the French will be eligible”, the measure applying to a tax reference income of less than 18,000 euros net.

“This is a plan to defend our industrial employment, which will be faced with one of the most serious crises in its history. It is a plan of industrial automobile sovereignty, which aims to relocate added value (…) And it is therefore a plan for the future of the automobile, of the 21st century ” , insisted the head of state. He said the Franco-German stimulus package of around 500 billion euros, which he presented last week with Angela Merkel, was “intended to support the most troubled sectors” such as the automobile.

Job guarantees requested from Renault

During his speech, the president asked Renault that “all employees (sites) of Maubeuge and Douai can have all the guarantees on their future” within the group, while concerns are mounting in the Hauts -of France. The loan of 5 billion euros guaranteed by the State promised to the builder “cannot be granted” before “succeed” the negotiations which must begin Monday around the Minister of Economy Bruno Le Maire, did he warned. The diamond group is expected to unveil the outlines of a two billion euro savings plan announced in February.

Emmanuel Macron also announced that Renault had agreed to “join the European electric battery program” supported by competitor PSA (Peugeot, Citroën, Opel) and the Saft group, a subsidiary of Total. This decision is part of the commitments required by the French State to promote production in France, in return for aid to the sector.

Rechargeable hybrid vehicles are entitled to a bonus of 2,000 euros.  It's a first.  © Photo Mix / Pixabay

Before his speech, Emmanuel Macron visited the chains of this factory where 1,500 employees produce 8 million alternators and alternator-starters per year, one every seven seconds approximately. 80% go to export. In the morning, he had exchanged at the Elysée with Jean-Dominique Sénart, the CEO of Renault, then with thirty managers of the automotive industry on the measures to take to get out of the doldrums this industry, which represents 400,000 direct jobs and 900,000 in total.