View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
May 27, 2020

PSA hails State sector support

PSA has welcomed plans by the French government to support the domestic sector, with aid of more than EUR8bn (US$8.8bn) for a range of new technology and relocalisation initiatives.

By Rhodri Morgan

PSA has welcomed plans by the French government to support the domestic sector, with aid of more than EUR8bn (US$8.8bn) for a range of new technology and relocalisation initiatives.

Making the announcement last evening (26 May) at Valeo’s Etaples plant in northern France, President Emmanuel Macron said OEMs had committed to relocalise added value production on home soil, with PSA for example, increasing domestic manufacture of electric and hybrid vehicles.

PSA has highlighted the following initiatives:

  • Introduction of the purchase bonus for plug-in petrol hybrid vehicles at EUR2,000: PSA produces the vehicles in France, in Sochaux, Mulhouse and Rennes
  • Increase of the bonus for electric vehicles to EUR7,000 for individuals and to EUR5,000 for fleets
  • A plan to strengthen the deployment of charging stations

“The plan presented by the President of the French republic fits with the movement initiated by Groupe PSA in its daily fight against global warming, accompanied by substantial investments to locate the electrification value chain in France,” said PSA chairman, Carlos Tavares.

“We welcome the purchase incentive scheme which should promote the energy transition with aid intended to increase the market share of electrified vehicles and to accelerate the renewal of old vehicles with more virtuous vehicles “

PSA says it contributed more than EUR4.4bn to the French trade balance in 2019 and is investing more than EUR400m in production capacities for future electrified powertrains at its French sites, which will be supplemented by the European industrial project for the production of batteries.

The Group will produce in France from 2022, components which are sourced in Asia for the time being. Electric motors will be produced by the joint venture with Nidec Leroy Sommer in Trémery and the E-DCT gearboxes in Metz by the joint venture Punch Powertrain PSA e-transmission.

Other components are, or will soon be, manufactured in France such as casings of electrical machines in Charleville, reducers in Valenciennes, as well as trays and battery packs in the Group’s factories in Poissy, Sochaux, Rennes and Mulhouse.

In addition, a new generation of electrified platform will be industrialised at the Sochaux site by 2022 to manufacture the future generation of the Peugeot 3008.

PSA is partnering with the Total Group for an investment in France of around EUR2bn, to relocate battery production from China to a gigafactory in France. This represents 35% of the value of electric vehicles.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Monday. The industry's most comprehensive news and information delivered every quarter.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Auto