French Finance Minister, Bruno Le Maire has raised the possibility of a “reinforcement” of automotive conversion incentives, but stresses it might be among a range of measures to support the beleaguered industry.
Le Maire is scheduled to meet representatives from the auto industry shortly at which further details may be forthcoming, but the Finance Secretary has dropped some hints as the sector continues to be buffeted by coronavirus winds.
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The French new car market collapsed by 86% in April and Paris has reacted by saying it is working with the sector to promote more ecological vehicles and stressing its participation with Germany in electric battery initiatives.
Le Maire’s comments made on French television and sent to just-auto by his Ministry in Paris, did not specify what hard cash might be forthcoming from the State, but he did hint there are several options currently being studied to help the industry.
“It seems to me the three main directions for automotive, which are important, are: first of all, the greening of the car parc, to have a sector, which as we asked the aeronautical industry, is the greenest possible and which increases its ecological transition,” said Le Maire. “It could be incentives in the form of on-demand support, it could be a reinforcement of conversion bonuses, there are many hypotheses on which we are working with the auto sector.
“It’s [also] working on the electric battery initiative, which we have launched with Germany and which we want to speed up in the coming months. You see, that is the first significant way forward for the car industry – the second is clearly becoming more competitive. If we want to keep plants in France, we have to be competitive in relation to other production sites everywhere else across the planet.
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By GlobalData“And then the third course is re-localisation. I think the French automotive sector has de-localised too much. It must relocalise certain production and it is the balance between these three courses which should allow us to have a car industry which can emerge stronger after the crisis.
“Automakers – we are ready to help you; we are ready to to improve for example, conversion bonuses, we are ready to look at what can help your competivity with production in France. The counterpart to that must be: What re-localisation do you envisage? We are ready to work with the electric battery sector and the State is putting a lot of public money on the table.
“The electric battery sector is one of the great, technological, strategic stakes for Europe. But on the other hand, there must also be carmakers who commit to saying: there you are, that category of vehicle, that category of manufacture, we are going to relocalise in France. That is how we are going to be able to build a stronger automobile industry.”
The closest the influential Finance Minister came to talking Euros and cents was when he insisted he had “never hidden” the fact production taxes were part of the mix which burden French industrial competivity. “That is part of what, at the right moment, could be on the table,” added Le Maire.
“But it’s only broaching these subjects in a global manner, asking ourselves what sort of industry we want tomorrow, that we will find the right answers today.”
