Wednesday, June 29, 2022
News France to invest in electric car production

France to invest in electric car production

France will invest in most sectors of its economy, including electric vehicles

 

  • 4 billion euros will be allocated to the transport sector, mostly electrification

  • France has suffered from industrial decline since the 90s

  • These measures are part of a $35 billion USD “relaunch” program

France as been suffering from an industrial decline for the past 25 years and its share of economic output in Europe has dropped to 14% in 2009 and stayed there until 2019, when it dropped even more.

To bring the country out of this slump, President Emmanuel Macron announced a 30-billion-euro ($35 billion USD) plan to relaunch the economy.

This plan sets aside money for various sectors such as nuclear energy, robotics, food and agriculture and cultural productions, but also 4 billion euros for transport and mobility.

This investment in transportation comes with a goal to produce 2 million electric and hybrid vehicles by 2030, as well as the creation of the first low-emissions aircraft.

France has been one of the most generous European countries in terms of incentives towards electrified vehicles, most notably via an 8-billion-euro fund created in May of 2020 to alleviate the effects of the pandemic on the auto industry.

Both major French car manufacturing conglomerates have already begun electrification of their range, Renault has set up an electric vehicle production hub in the North of the country and Stellantis has partnered with Total Energies to produce EV batteries in a new Gigafactory, one of three planned to be built in France.

This plan, called France 2030, comes only one year after a 100-billion-euro pandemic related spending package, form which the country’s automotive industry also benefitted.

These decisions are beginning to create tensions among the European union because other member countries want to go back to a normal economy and reduce the deficits accumulated since the start of the pandemic.

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