The French auto sector is not about to emerge from its infernal spiral. “There will be transformations and there will be other bad news», Warned the Minister of Economy, Finance and Industry Antoine Armand, invited to the Industry Conference at L’Usine Nouvelle, this Wednesday, November 6. “The entire industrial sector is facing an extremely difficult situationhe recalls. In the automobile industry, we are in a moment of economic growth that could sweep away the efforts made by manufacturers and equipment suppliers to transform the sector.»
And for good reason: due to a lack of production volumes and in the face of intensifying global competition, automotive equipment manufacturers are increasing the number of factory closures, restructurings and job cuts. Taking the example of the Arve valley, the minister, former deputy for Haute-Savoie, emphasizes that “We have been anticipating and fearing weak signals for a long time.” The fault of thecost of energy, labor and raw materials”, among others. One of the answers, according to him: diversification, which makes “less vulnerable» and for which “among public and private supports, there must be encouragement“. Many subcontractors are considering it, but transforming the products and the production tools is not easy.
“A bullet in the foot”
In the short term, the French automobile industry is rapidly approaching a regulatory wall: the ban on marketing thermal vehicles in Europe in 2035. With a new level of CO2 emissions in 2025, potentially synonymous with massive fines to come for manufacturers. “Is this regulation a good thing? In my opinion – and because we are in a speed race – yesestimates Antoine Armand. But if this involves billions of euros in fines for our manufacturers, who will pass it on partially or totally to the equipment manufacturers, that would be putting a bullet in the foot.»
«I think our competitors would look at us funny if we imposed fines on our manufacturers while the entire sector is doing badly.he adds. We did not set this objective for the pleasure of creating standards, but because we are in a speed race with Asian partners who are going faster than us, in particular because they use tools contrary to market practices. and business practices.» A subject on which the European Union has hit hard, imposing up to 35% additional customs duties on the entry of Chinese electric vehicles into its market.
«The trade war destroys value in general, for European industries as well as for those who implement protectionist measures“, still believes the minister. Putting up more barriers will ultimately weaken everyone. And in a world where everyone is hard and tense, we cannot be flexible, we must be firm and hard, otherwise we will be swept away.» A very clear and topical warning, as Donald Trump has just been elected President of the United States again. In particular on the promise to erect new customs barriers.
Source: www.usinenouvelle.com
