While the Paris Motor Show will open its doors to the public, concern has gripped manufacturers and equipment suppliers. The success of the electric car is stalling, customers are no longer there and for thermal cars, European regulations on CO2 emissions threaten their profitability.
This World Cup is a paradox. In a Paris where every day various bans wage war on the car, the show promises to be a party. From this morning, fans of beautiful bodies will rush by the thousands.
Several major German and American manufacturers abstained two years ago. This time everyone will be there. Tesla, Ford, Cadillac, the Volkswagen group, BMW and even the Korean Kia. The Chinese will be numerous and the French will be at home. Renault, with the latest models from Dacia, its electric R4 and R5. Stellantis will exhibit some of its 15 brands. Peugeot, Citroën, Alfa Romeo.
A situation that leaves something to be desired
And yet, concern is at its peak. Closure of factories planned at Volkswagen, Audi Brussels of course, but also in Germany. Partial unemployment at Fiat and Michelin. Battery factory project postponed. European Union fine in perspective.
The manufacturers and behind them all the equipment manufacturers and subcontractors are alarmed by a new crisis. 14 million jobs are at stake across the Union.
Certainly, this year, new car sales are expected to reach 18.2 million units compared to 17.8 million last year. But we are far from the 21 million pre-Covid.
Future of the sector
The problem comes in particular from electric cars whose sales are collapsing as state aid disappears in Germany or decreases in France. In Europe, the share of electric has fallen to reach 12.6% of the market.
“The future of the sector is at stake,” say some manufacturers, especially since European electric cars are still more expensive than Chinese ones.
In Europe, producing an electric vehicle still costs 40% more than a gasoline vehicle due to its battery, but also volumes that are too meager to achieve economies of scale.
Eastern Europe, the new El Dorado for manufacturers?
To produce cars at better prices, the French, in particular, are turning to Eastern Europe and its low wages. The new Twingo will be produced in Slovakia, the Citroën C3 in Slovenia.
The unions are rebelling and could demonstrate during the World Cup. As for manufacturers, they hope to redegotiate the decarbonization plan for 2035 with Europe.
If this situation did not threaten one of our main industries, this electric trend would make me smile. Everyone is talking about a historic revolution. However, the first car to reach 100 km per hour in 1899, the “Jamais contente” by Belgian Camille Jenatzy, was an electric car.
Signed Giltay Mondial de l’auto France automobile car vehicle
Related News :