Automobile: 100,000 conversion bonuses already granted

Posted on Jul 2, 2020 at 6:08 p.m.

“The automobile recovery plan is effective! “Following the meeting of major players in the sector held Thursday morning, the Minister of the Economy, Bruno Le Maire, welcomed the first results of the vast support plan to the industry, announced on May 26 and launched without delay.

In particular, the new conversion bonus has, according to Bercy, torn off like hotcakes: 100,000 bonuses have already been consumed at the end of June out of the 200,000 available, and the envelope will be exhausted before the end of the summer, a assured the minister. “We will then see what decisions we make, and if there is any reason to extend them,” he said.

These premiums, paid for the purchase of a recent vehicle to customers disposing of a polluting car, were doubled (up to 5,000 euros) on June 1, and the eligibility conditions (for vehicles and income of buyers) significantly expanded. Bonuses on the purchase of electric and plug-in hybrid cars were also increased.

As a result, new car registrations have rather reacted well in June (+1.26%, but slightly down on comparable working days). As for used vehicles (+ 27.6%) and battery vehicles (x3), their volumes have jumped. “The device has shown its effectiveness,” continued Bruno Le Maire.

150 million envelope

The Ministries of Economy and Ecological Transition also announced Thursday that they have already chosen the 27 R & D projects that will receive state subsidies from the Automobile plan. The government announced on May 25 an envelope of 150 million euros, intended to accelerate the development of technologies necessary for clean vehicles: batteries, hydrogen, electric powertrain, power electronics, connectivity, lightening of materials, etc.

These projects, which will represent a total investment of around 1 billion, are being carried out by the major players in the sector (Renault, PSA and Renault Trucks, on the manufacturers side, Valeo, Faurecia, Michelin, Plastic Omnium or Bosch, on the equipment side) , chemists (Solvay, Arkema), electronics engineers (ST Microelectronics and Soitec), or even SMEs such as Carbone Savoie.

“The largest, which will receive up to 10/13 million grants, are those of chemists, Michelin, ST Microelectronics, and Valeo),” said a government spokesperson. “It is a question of relocating the areas with high added value in which the French players have strong skills”, he continues. In return for the public subsidies, the companies are committed to locating the projects, but also their possible industrialization, in France.

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