France calls for a European crisis plan to support the automotive industry. “We have a problem with competitiveness, with demand and with unfair Chinese trading practices,” said French Industry Minister Marc Ferracci (46) to “Handelsblatt”. “The future of our auto industry depends on whether we find an answer to these colossal challenges.”
In order to strengthen demand for electric cars from European manufacturers in the short term, Ferracci is promoting purchase bonuses based on the French model that are coordinated in the EU. France had made the funding dependent, among other things, on CO₂ emissions during production and thus from vehicles China effectively excluded from this subsidy.
Germany had stopped its state environmental bonus for the purchase of electric cars at the end of 2023. The collapse in sales of electric cars and, as a result, the crisis in the German auto industry is generally associated with this. The SPD is now in favor of a new edition, and Federal Economics Minister Robert Habeck (Greens) also supports new funding for e-mobility.
As a further lever to strengthen demand, Ferracci is discussing a European initiative to electrify commercial vehicle fleets. The minister said the details still need to be discussed with partners in the EU. “But the principle is that we – just like our retail competitors do – give preference to European cars when it comes to funding, be it in the purchase premium or in investments.” Paris is also pushing for an industrial policy response for other sectors under pressure, such as steel or chemicals the European.
China calls for mediation in the dispute over electric cars
Meanwhile, the government in Beijing is pressing ahead with the trade dispute between China and the European Union on a mediating role for France. At a meeting with French Foreign Trade Minister Sophie Primas (62) in Shanghai on Sunday, Chinese Trade Minister Wang Wentao (60) called on France to take an “active role” to persuade the European Commission to find a solution acceptable to both sides. “The EU investigation into China’s electric cars is a big issue and seriously hinders China-EU cooperation in the automobile sector,” China’s Commerce Ministry quoted Wang as saying on Monday. Primas is currently in Shanghai to mediate in the trade dispute between the EU and China and to avert the announced Chinese punitive tariffs on cognac.