The French Automotive Industry
Total Page:16
File Type:pdf, Size:1020Kb
THE FRENCH 7.8 AUTOMOTIVE MILLION VEHICLES Produced by French INDUSTRY manufacturers worldwide ANALYSIS & STATISTICS 2018 81% OF VEHICLES Produced by French manufacturers are sold abroad €5.2 BILLION French automotive industry research and development budget in 2015 €49 BILLION Automotive products sold abroad 80% Share of domestic travel in France using passenger cars 85% Share of domestic freight transport in France by road EDITORIAL A WORD FROM THE PRESIDENT and emissions. is riddled with uncertainty, French manufacturers will, over the long term, be faced with considerable Diesel has gone into steep decline. Triggered challenges and investment needs, which, by the success of petrol engine models, it was by definition, accompany major automotive accelerated by fraudulent practices (or suspicions revolutions. thereof), and then amplified by traffic restrictions. A paradoxical situation given that the diesel The electrification of engines is underway. emission problem had been resolved with Euro This technology is the major thrust of CSF 6d Temp. This loss of trust also impacted the commitments. There are now more than 20,000 CO2 issue. Right in the middle of the change charging stations open to the public in France; and of accreditation protocol, from the NEDC to the this will increase to 100,000 by 2022, increasing WLTP, consumption values have changed with sales of electric and rechargeable hybrid vehicles CO2 levels. This is happening during the review fivefold. period on European Commission objectives, where unrealistic positions are being discussed for the France has made the autonomous vehicle a 2030 horizon. It is crucial that we get real on this major industrial programme. PSA and Renault topic. Auto manufacturers have always shown their groups, very much involved in this process, commitment by drastically reducing emissions, share this experience under the CSF umbrella. but it is the market – and therefore customer The public authorities have drawn up a roadmap choice – that drives performance. The decline in to facilitate the testing of autonomous vehicles in diesel and the sluggish electric vehicle market are France. In the digital field, the public authorities leaving a dark cloud of massive financial penalties also need to assess the challenges involved in if European 2020 objectives are not met, thereby data sharing amongst vehicles and understand weakening manufacturers who have to invest in the manufacturer’s role as an architect, which is new technologies. inseparable from that of guardian of its customers’ data. The “extended vehicle” constitutes an At the 24-hour Le Mans race, before the end ‘‘Technological neutrality’’ of regulations is a international standard developed by the French of the Hunaudières section, the key thing is to be key element: the public authorities have to define automotive industry, encompassing the vehicle and ready for the Mulsanne corner… Today, like in that realistic targets and industrialists need to find the off-board servers. It has found its legal translation famous race, the global auto industry is getting appropriate technologies to meet them. Thus, within the CSF framework. to the end of a straight line and in spite of a very the electrification of powertrains does not mean buoyant business climate, several manufacturers the end of the thermal engine. Its acceptance Today, French manufacturers are making the are reporting falling profits. French manufacturers, by customers is dependent upon recharging most of the buoyant auto cycle, but remain vigilant for their part, are in good shape as they prepare for infrastructure and cost. Imposing technologies as to the medium to long-term challenges they this cyclical phenomenon, which comes at a time puts the European auto industry’s R&D knowhow face. The public authorities have to ensure that the when the challenges they face are of unparalleled in jeopardy, in particular when they have to face conditions are right to solve problems and guide proportions. the ambitions of China. them in the right direction. Consolidated in their traditional professions, the French manufacturers More than ever, the automobile meets the world’s In a buoyant trading climate, French manufacturers are fully committed to the “new automobile frontier” needs for mobility. The global market for vehicle increased production in France. There has been with the connected, autonomous vehicle and digital sales has reached a new record level, at 97 million a 25% increase compared to 2013, i.e. 460,000 services. units. In 2017, French auto groups sales grew, additional vehicles. This recovery is linked to the both in terms of trading results and scope (Opel- internal efforts of the PSA and Renault groups, French manufacturers are sticking to their race Vauxhall/PSA and AvtoVAZ/Renault). The renewal with the reorganisation of sites and new company plan… of car bodies with “SUV/Crossovers” proved to be agreements, as well as help from the CICE tax a good bet, as was the idea of introducing light credit. However, the tax burden on production Enjoy the read! commercial vehicles. Renault Trucks’ complete is still too high in France compared to other Christian PEUGEOT revamp of its heavy trucks range started in 2013 European countries. The CCFA is working on this has also been a great success. competitiveness question with France Industrie and the Medef. However, the industry is heading into turbulence. In a dynamic French market, the diesel crisis is Globally, uncertainty as to international trade all too present. Its market share was 47% in the formats, triggered by the Trump Administration, registration of new passenger vehicles in 2017 steel and aluminium, customs duty on vehicles (40% by mid-2018). This collapse will not be and components, Iran and Russia, are certainly without industrial and human consequences: the weighing heavily on the auto sector. The rules automotive industry’s Strategy Committee (CSF), introduced to build a stable structure for trade along with the State, needs to accompany the have been brought into question and today, the identification and reconversion of employment risk of protectionism is very real. The European areas of France that are under threat. The increase automotive industry is also facing uncertainty in CO2 values, linked to the WLTP accreditation of due to the lack of clarity on the consequences passenger vehicles on September 1, 2018, needs of Brexit. to be neutralised from a fiscal point of view, but in the time it will take for the legal texts to come “The Volkswagen scandal” in the US really through, the market could be disrupted. This comes damaged the image of European cars. The on top of the burden of French taxation on cars and worst affected was the German auto industry, the remains a recurrent negative point for households economic powerhouse on the other side of the and for the renewal of the vehicle stock. Rhine, which was plunged into an unprecedented crisis, revolving mainly around the issues of diesel This situation, although positive in the short term, COMITÉ DES CONSTRUCTEURS FRANÇAIS D’AUTOMOBILES • ANALYSIS AND HIGHLIGHTS 2018 1 ORGANISATION THE FRENCH AUTOMOBILE MANUFACTURERS’ ASSOCIATION The Comité des Constructeurs Français Electrical, Electronic and Communications Industry communications throughout the industry. d’Automobiles (CCFA) is the French automobile Federation, FIM, Fédération des Industries manufacturers’ trade association. Its members are: Mécaniques - Mechanical Industry Federation, Foreign brands are represented by the Chambre Alpine, PSA (Automobiles Citroën – Automobiles GPA, Groupement Plasturgie Automobile - Syndicale Internationale de l’Automobile et du Peugeot), Renault and Renault Trucks. Its mission Automotive Plastics Group, SNCP, Syndicat Motocycle (CSIAM - International Association of the is to study and defend the business and industrial National du Caoutchouc et des Polymères Automobile and the Motorcycle). CCFA is associated interests of all French automobile manufacturers - National Union of Polymers and Rubber with Brussels-based ACEA, the European Automobile on both national and international levels (excluding Industries, etc.). In 2009, during the crisis, French Manufacturers’ Association. labor issues which are the remit of the UIMM – the automobile manufacturersand their suppliers union of specialties and metallurgical industries). came together within the Liaison Committee of It is also a member of the OICA, Organisation Automotive Suppliers (CLIFA - Comité de Liaison Internationale des constructeurs de l’automobile CCFA’s activities include information, analysis des Fournisseurs de l’Automobile) to establish (OICA - International Organisation of Motor Véhicle and communication for its members as well as the PFA, French Automotive & Mobility Cluster, Manufacturers, which brings together national for government agencies, public officials, members which has the task of contributing to reinforcing associations representing the industry from around of parliament, the manufacturing sector, the the French automotive industry. In 2012, the the world. automotive and road industry, research bodies, Automotive Technical Committee (CTA - Comité the media and the general public. Technique Automobile) with its two boards, the Automotive Technical Standardisation Council Other sectors of the automotive industry (parts (CSTA - Conseil de Standardisation Technique and equipment manufacturers, dealers, body Automobile) and the Automotive Research Council manufacturers) have their