Published on : 05/25/2020 – 23:54
Emmanuel Macron unveiled this Tuesday, May 26, the content of the plan to revive the automobile market, particularly affected by the Covid-19 epidemic, and the measures to stem its expansion.
The Covid-19 pandemic brought an abrupt end to the auto trade. The French market for new cars collapsed by more than 70% in March and by almost 90% in April. And if the activity of factories and concessions restarted in May, experts fear a slow recovery, with consumers reluctant to buy cars, which is their second biggest expense after housing. Over the year, sales could drop by 30% in France, one of the most affected countries.
The automobile sector represents 400,000 direct industrial jobs and 900,000 with services (dealers, garages, driving school, etc.). The crisis caused by the epidemic threatens from 40,000 to 50,000 jobs, only in services, and 30% of companies risk bankruptcy, according to the National Council of Automobile Professions (CNPA).
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Bruno Le Maire said that the plan presented on Tuesday was ” relaunch demand “, Especially that” clean vehicles, which emit the least CO2 ” It is necessary ” renew the French car fleet “And” give the electric vehicle a real boost “, Explained the Minister of Economy.
The ecological bonus, bonus for the purchase of an electric car which is currently 6,000 euros for individuals, could thus be increased. The same could be true for the conversion premium, subsidy for the purchase of a recent automobile in exchange for the scrapping of an old vehicle, which benefits low-income households. For the sector, this system would also have the advantage of stimulating the purchase of second-hand vehicles and recent thermal engines, which constitute the bulk of the market.
Dealers are currently drowning in vehicle inventories, mostly gasoline and diesel. Some 400,000 cars are waiting in the car parks to be sold, four months of sale and 10 billion euros in cash.
The plan will also include support for the offer. It is necessary ” support SMEs, allow them to digitize, to robotize “Said Bruno Le Maire. The government is demanding in exchange the location of “clean” vehicle models in France. Because the challenge is employment. After the 2008-2009 financial crisis, state aid did not prevent a wave of relocation, however.
We are waiting for aid on new vehicles, aid to try to reduce the stock of vehicles we have for sale and we need support for the industrial sector.