The French president called for tariffs on Chinese EVs and a united European strategy as the auto industry struggles.
ADVERTISEMENT
As France and the EU grapple with a severe car industry crisis, French President Emmanuel Macron officially inaugurated the 90th edition of the Paris Motor Show on Monday – one of the most important events in the automobile industry.
French President Macron mentioned the “difficult moment” for French and EU carmakers, due in part to the ferocious competition from Chinese rivals.
He said on Monday that it’s "necessary in times like these to protect France. It's normal to put in place tariffs" – alluding to the European Commission’s plan to heavily tax cheap electric vehicles produced in China that have flooded the EU market, driving down prices.
Macron also stressed the importance of a united front: “Europe must have a united strategy, to help in this transition, to continue to invest, and to preserve the fair rules of the game”, said the French leader.
In France, new car registrations have been plummeting these past few months, reaching their lowest level in 20 years.
The same in the EU: we’re seeing a drop of more than 18% in new car registrations in August.
Major players in the French auto industry such as Michelin have paused production at some of their tyre factories.
Meanwhile, auto giant Stellantis' boss Carlos Tavares said on Sunday he is not ruling out factory closures within the group across the EU.
Last week, the French government presented its draft budget plan for 2025 which is also a source of anxiety for the French automobile industry
It includes heavy penalties for combustion engines and a reduced bonus for electric cars.