President Emmanuel Macron received representatives of the automotive industry on Monday, July 12 at the Elysee Palace, who asked for assistance in financing its ecological transition, particularly the switch to electric motors, an acceleration that the sector estimates will cost more than 17 billion euros by 2025.
One year after the implementation of the automotive recovery plan in May 2020, the Head of State will convene manufacturers, equipment suppliers, social partners, and sector representatives to “mobilize the automotive sector in the face of the acceleration of the ecological transition” and “Build, at the national and European level, a common strategic vision for 2030,” the Elysée Palace announced.
“This is a necessary transformation that the president is ready to support, as part of an automobile investment plan that is as strong as possible at the European level,” adds the Elysee, recalling that an “eight billion euro plan” was announced in May 2020 as part of the exit from the Covid-19 crisis.
According to the same source, discussions on Monday should centre on “a detailed transition plan, with a strong ambition for future activities (batteries, hydrogen, power electronics, on-board software, charging stations, etc.) and enhanced support for all sectors affected by this transition.”
The sector estimates that 17 billion euros will be invested in France over the next five years, “on key automotive technologies of the twenty-first century,” according to the Automotive Industry Platform (PFA), which estimates the need for 30 per cent public support.
The sector, which collaborated with McKinsey, estimates that it will require Є9 billion to capture and (re) localize the following technologies in France: electric batteries (6.6 billion), hydrogen (1.2 billion), power electronics (900 million), and connectivity.
He recalls that France only has two “gigafactories” for batteries, despite the fact that it will require five times as many by 2030.
According to the PFA, the economic impact of these investments would result in the creation of more than 35,000 jobs and an additional value of 7.5 billion euros.
Approximately 8.5 billion euros would also be required to accelerate the deployment of electric charging stations, which France is currently lagging behind with around 33,000 installed to date, compared to the 100,000 expected by the end of 2021, according to the Association for the Development of Electric Mobility (Avere).