The Strategist

France will spare €8B to support car industry

05/27/2020 - 07:17

France should become Europe's leader in electromobility, said President Emmanuel Macron. The authorities want to expand the network of charging stations and increase the output of electric vehicles and hybrids to 1 million per year.

France will direct over €8 billion to support its automotive industry. The authorities intend to turn the country into a European leader in electric mobility, said President Emmanuel Macron on Tuesday, May 26.

In particular, €1 billion will go to government subsidies for buyers of environmentally friendly vehicles. In the next 5 years, French plants will increase the production of electric vehicles and hybrids to 1 million per year, the head of state assured.

President also emphasized the need to accelerate the construction of charging stations. According to Macron, the network will have 100,000 stations by 2021, and not by 2022, as originally planned.

In exchange for large-scale support, automakers pledged to move production to France, President added. So, the automotive company Groupe PSA announced its intention to arrange domestic production of parts in 2022. The company, together with Total, will invest about €2 billion in the transfer of battery production from China to France.