Car Plan : the delicate mix of aid | Automotive

Without the Covid, the auto industry was about to experience a very difficult year because of the application of the rules of the CO2. With the Covid, it is a b

Car Plan : the delicate mix of aid | Automotive

Without the Covid, the auto industry was about to experience a very difficult year because of the application of the rules of the CO2. With the Covid, it is a black year that will go through the car, remember, France is home to two world champions. Few countries can say as much even if it does not fail to consider the nature actually French of their activity. This concept will debate at the time of close of Renault sites of production in france and about a condition used by the government to grant or not a loan of 5 billion euros at the diamond.

In this tense context, the president and Emmanuel Macron must announce today a plan to revive the automotive market in French paralysed by the crisis of the sars coronavirus. With measures that are hardly original, being part of the catalog-the usual government subsidies, but who need to wake up the emergency request. With the impact on the existing stocks of the order of four months, and the employment.

The emergency order, because, with the crisis of the Covid, the market already little brave in the beginning of the year with the entry into force of the rules of CO2 has collapsed. 70 % drop in march to half impacted by the containment, and close to 90 % in April where the concessions have remained closed, we had never seen it. The timid recovery of may not prevent a setback severe sales year-on-year, they could fall by 20% in Europe and 30 % in France, a country among the most affected.

The sector has already suffered a lot from the crisis of diesel and needs to make heavy investments in new technologies (electric vehicles and connected) that were not scheduled as early. The first victim of the crisis, Renault has been forced to seek a loan of € 5 billion guaranteed by the State and is preparing to announce closures of sites. The oem Novares, which employs 1 350 people in France, was placed into receivership.

A proven risk of contagion that the government wants to identify as quickly as possible, because the automobile represents 400,000 jobs direct industrial and 900 000 with the services (dealerships, garages, driving school, etc). Of 40 000 to 50 000 jobs are threatened, only in the services, and 30 % of the enterprises bankruptcy risk, according to the Conseil national des professions de l'automobile (CNPA).

Batteries chinese

The Economy minister Bruno Le Maire said the plan would " boost demand ", particularly that " of clean vehicles, which emit less CO2 ". It is necessary "to renew the park is a French car" and " give a real boost to the electric vehicle ".

The bonus ecological, bonus with the purchase of an electric car which is currently 6, 000 euros for individuals, could be increased. Can even be raised to the level of 8 000 euros, which is outrageous for a technology that should, in itself, impose.

The paradox of power is that almost half of the value of the vehicle is constituted by only one battery, which is provided by the asian industry. The Chinese specifically because they also manufacture for their competitors, japanese and Korean. While they have failed to develop thermal cars competitive in terms of benefits, they have, in this way, and with the blessing blind of Europe, forced the automotive industry to make the shift to all-electric. A clever way to transform their delay in advance by changing, with the complicity of the environmental NGOS, paradigm.

The last amateurs thermals, much to the chagrin of environmentalists or of the association Nicolas Hulot, would still be helped through a premium conversion, formerly called scrapping premium. It is a subsidy to the purchase of a recent auto in exchange for the scrapping of an old vehicle, which intends to benefit low-income households. This device that has proven successful in rehabilitating the rolling stock, will encourage both the purchase of used vehicles and powertrains thermal recent, which constitute the bulk of the market.

What is the national preference ?

the economic efficiency of The measures will require european coordination. Renault flows only 17 % of its volumes in France and PSA 24 %. Their market is european and global, that forget, too much French. Inevitably, these national aid will also benefit the foreign manufacturers, which occupy almost half of the national market.

The national preference has been shaken by the new world order pushes to be manufactured outside of France models to low margin which also happen to be the most sold. The citadines Peugeot 208 and Renault Clio have left France to low-cost countries. The government claimed, therefore, commitments to locate in France the jobs related to electric vehicles.

" there is a commitment that must take Renault : it is to be a shareholder of the alliance for the electric batteries ", said Monday The Mayor. The project is now worn by PSA (Peugeot, Citroen, Opel) and the specialist of Saft batteries, a subsidiary of Total. But it leaves a blank page, because nobody owns the lithium-ion technology.

After the financial crisis of 2008-2009, the counterparties on the job demanded by the State had not prevented a massive wave of relocations. To avoid a new failure, measures for strengthening the competitiveness are in the planning for September.

Updated Date: 26 May 2020, 01:33

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