Presented on Tuesday May 26 by Emmanuel Macron, the car recovery plan will mobilize 8 billion euros of public money to support the sector. Expanded conversion bonus, new bonus for electric and plug-in hybrid cars, investment funds, relocation … we summarize the main measures announced by the President of the Republic.
The automotive sector is of particular importance and the government has made it clear that this is the case. Rather than the Minister of the Economy, Bruno Le Maire, it was Emmanuel Macron who took the floor to announce a series of measures intended to revive an auto industry in decline following the coronavirus crisis.
” The Covid-19 crisis brought a massive and brutal end to the auto industry. The sector experienced an average 80% drop in activity. It’s unprecedented outside of wartime “Declared the President of the Republic during an intervention carried out the factory Valéo d ‘Etaples, in the Pas-de-Calais, during which he detailed a plan strongly centered on the electric car.
LIVE | Presentation of the support plan for the French automotive industry, hard hit by the COVID-19 crisis. https://t.co/EODabi71uY
– Emmanuel Macron (@EmmanuelMacron) May 26, 2020
Make France a leader in clean vehicles
Announcing ” a historic plan faced with a historic situation Emmanuel Macron wants to accelerate the transition to electric.
“ We must preserve but also transform. Our industry is facing major challenges that existed before the Covid-19. The next one is brewing now “He said, ensuring he wanted to make France the leading producer of electric vehicles in Europe with a target of 1 million clean vehicles produced within 5 years.
Up to € 7,000 for the purchase of a car electric
On the bonus side, Emmanuel Macron formalized the increase in the premium for electric cars. Previously limited to € 6,000, it is now increased to € 7,000 for individuals. For businesses, it goes from 3,000 to 5,000 €.
Excluded for several years, rechargeable hybrids join the system with a fixed price of € 2,000.
In addition to supporting vehicles, Emmanuel Macron confirmed the announcement made a few days ago by the Secretary of State for Transport, Jean-Baptiste Djebarri, announcing a target of 100,000 charging stations by 2021. Once again , the President did not give details behind this plan which will probably be clarified in the days and weeks to come.
An extended conversion bonus
” Today there are more than 400,000 vehicles that should have been sold and that weren’t. We will be at the end of June 500,000 unsold vehicles compared to the previous year Encrypts the President who announces that he wants to temporarily increase the conditions for the allocation of the conversion bonus in the event of the scrapping of an old petrol or diesel vehicle.
Without going into the details of the device, Emmanuel Macron presents it as a “stimulus bonus”. ” Three quarters of French people will be eligible “Promises the head of state, indicating a reference tax income set at € 18,000 against € 13,489 for the current system. Old petrol or diesel vehicles will thus be helped up to € 3,000 by the State and even € 5,000 in the event of the acquisition of an electric vehicle. Introduced as of June 1, this expanded system will only affect 200,000 vehicles, warns the President.
Give and take
If the state intends to invest 8 billion euros to support the automotive industry, it will not be without consideration from the manufacturers.
Renault and PSA have therefore made commitments to relocate their production to France. “ PSA has decided to significantly increase its production of electric and hybrid vehicles on French soil. In 2019, no vehicle of this type was produced PSA on our soil. By 2021, the target of 130,000 vehicles should be met Announces Emmanuel Macron who welcomes Peugeot’s choice to locate the production of the future electric 3008 in Sochaux.
The state will provide more than 8 billion euros in aid to the sector. In return, the car manufacturers have committed to relocate value-added production in France and to consolidate and maintain all industrial production on our sites. https://t.co/qRWDF4aRzE
– Emmanuel Macron (@EmmanuelMacron) May 26, 2020
Renault has also made commitments which should be confirmed at the end of the week when the manufacturer’s recovery plan is presented. According to Emmanuel Macron, the production of the brand’s electric vehicles in France will be tripled by 2022 and quadrupled by 2024. Initially planned in Asia, the future electric motor of the Alliance will also be developed in Cléon (Normandy), a site that already manufactures the engines for the Renault ZOE. In the field of batteries, Renault has also decided to join the project led by Total-Saft and PSA.
Funds to support the sector and innovation
” It is in France that the clean vehicle will be invented and produced ” promised the President, indicating wanting to unlock “Substantial resources To support the sector and innovation. 200 million euros will be invested to support equipment manufacturers. An investment fund of 600 million euros will also be launched. Financed up to 400 million euros by the State and 100 million euros by each national manufacturer (PSA and Renault), it will modernize and consolidate the sector, in particular the subcontracting sector , weakened by weeks of crisis.
150 million euros will finally be mobilized for research around the vehicle of the future. ” The most advanced projects will be able to start before the end of August Promises the President.