The French automotive sector is facing significant pressure from strict EU environmental regulations, ambitious energy transition targets, declining competitiveness, and the imposition of 25 percent U.S. duties on car imports.
These factors are encouraging automakers to look for more affordable components outside the EU, putting domestic production at risk.
France the combined production of passenger cars and light commercial vehicles (LCVs) decreased by 10% last year compared to 2023, according to the International Organization of Automotive Designers (OICA), which unites French automakers.).
In 2024, the country's automakers produced 910,243 passenger cars, reflecting an 11% decrease. Production of light commercial vehicles in 2024 decreased by 7% to 447,458 units. The total production volume was 1,357,701 vehicles, compared to 1,505,079 vehicles in the previous year of 2023.
According to the local association of automotive component manufacturers FIEV, the situation in Europe and France is worrisome. The drop in national production to 1.3 million vehicles in 2024 reflects a decline of 63% since 2002 and 38% since 2020, warned FIEV President Jean-Louis Pesch during a Senate hearing last week.
More than 70% of FIEV members believe that car production in the country will decrease by 63% since 2002 and by 38% from 2020. their production in France and Europe is under threat. According to a survey conducted in March, 55% of respondents have already acknowledged the possibility that French and European automakers may start purchasing components from cheaper competitors outside Europe.
Employment in the automotive components manufacturing sector in France will increase in 2024. The number of jobs decreased to about 56,000, reflecting a decrease of 17% compared to the level of 2019.
Since January 2024, about 7,300 jobs have been eliminated or are at risk due to restructuring or closure initiatives. At the European level, 42% of suppliers expect to operate at a loss in 2025, according to a FIEV document obtained by [b]Kallanish.[/b]
The period of high inflation from 2022 to 2024 has significantly widened the competitive gap between European and Asian suppliers. Apart from the U.S. 25% of all imported cars are charged, European equipment manufacturers are suffering from a general decline in vehicle production and slow sales of electric vehicles in Europe.
The association calls for the implementation of the basic requirements of 75-80% "made in Europe" content in vehicles. He is also committed to taking decisive European measures to improve the competitiveness of the automotive sector, especially
