The French Automotive Industry Analysis and Statistics 2010 2010 EDITION THE FRENCH AUTOMOTIVE INDUSTRY Contents EUROPE - FRANCE EDITORIAL 01 Xavier Fels, Chairman of CCFA ANALYSIS anD HIGHLIGHTS WORLD 04 Production Markets Trade EUROPE 12 Markets by vehicle type, country, manufacturer, etc. AUTOMOTIVE RESEARCH BODIES Institut national de recherche sur les transports Passenger car fleet IN FRANCE et leur sécurité (INRETS) Transport economy and sociology department (DEST) Fondation Sécurité routière The automotive industry 2, rue de la Butte-Verte http://www.fondationsecuriteroutiere.org 93166 Noisy le Grand Cedex Tel.: +33 (0)1 45 92 55 00 – Fax: +33 (0)1 45 92 55 01 Groupe d’études et de recherches permanent FRANCE 22 sur l’industrie et les salariés de l’automobile (GERPISA) www.inrets.fr École normale supérieure de Cachan – Bât. Desjardin – INRETS Head Office French manufacturers: facilities, production, markets, 61, avenue du Président-Wilson – 94235 Cachan Cedex 25, avenue François-Mitterrand – Case 24 – 69675 Bron Cedex competitiveness factors of the French automotive industry, Tel.: +33 (0)1 47 40 20 00 Tel.: +33 (0)4 72 14 23 00 – Fax: +33 (0)4 72 37 68 37 the automotive industry and the crisis, etc. www.leblog.gerpisa.org The industry in France: research and development, Programme national de recherche Institut français du pétrole (IFP) et d’innovation dans les transports terrestres (PREDIT) competitiveness factors, foreign trade, etc. 1-4, avenue de Bois-Préau Tour Voltaire – 92055 La Défense Cedex Markets: diesel, body, used cars, French Overseas Departments, etc. 92852 Rueil-Malmaison Cedex Tel.: +33 (0)1 40 81 14 17 – Fax: +33 (0)1 40 81 15 22 www.predit.prd.fr Use: vehicle ownership, traffic and CO2 emissions, domestic transport Tel.: +33 (0)1 47 52 60 00 – Fax: +33 (0)1 47 52 70 00 of passengers and freight, cost of passenger and freight transport, etc. www.ifp.fr Spending: price indices per mode of transport: passengers and freight, consumption, financing, etc. Economic impact and employment: distribution, suppliers, etc. STATISTIcS WORLD 56 EUROPE 59 CCFA regularly publishes leaflets on various automobile-related FRANCE 66 subjects: press surveys, trend charts, etc. All these publications can be consulted on our website www.ccfa.fr This brochure was produced by CCFA, 2 rue de Presbourg, 75008 Paris Telephone: +33 (0)1 49 52 51 00 – Fax: +33 (0)1 47 23 74 73 – Website: www.ccfa.fr – E-mail: [email protected] Design and production: – Illustrations: Fabrice Mathé – Photos: Peugeot, Citroën, Renault, Renault Trucks – Translation: Parléclair. This document is printed on Print Speed Laser paper, certified PEFC (Program for the Endorsement of Forest Certification), guaranteeing sustainable management of forests. It was printed by an Imprim’vert printer who uses only non-toxic products and ensures the safe collection, PEFC/10-3-1190 FCBA/08-00860 storage and processing of dangerous products and waste. EDITORIAL In 2009, French car manufacturers coped with the crisis; government supports (loans, scrap incentives, temporary part time contracts) were very pertinent and efficient. However, in France, for them, a country of large production and supply, the problem of competitiveness hinders development. Fast and furious efforts must be made in this area. Dear reader, In 2009, the historic crisis that began in 2008 has continued to affect the world’s economy gravely. For the automotive sector in traditional manufacturing countries, the difficulties continue despite the brutal shock having passed. After global automotive production dropped by 4% in 2008, it fell by a further 13% in 2009 to just under 62 million vehicles representing 11.5 million fewer units than in 2007. These variations were already important on an annual rate; they mask the infra-annual variations and illustrate the brutality of adjustments that affect our sector. They also hide a contrast between zones enjoying geographic growth, China in particular, and the traditional manufacturing regions that are in free fall. In the United States, automotive manufacturing has dropped by nearly 50% compared to 2007. Fortunately, the reaction from French manufacturers and the implementation of government policies to support the economy with finely targeted and calibrated measures limited the impact of the crisis. From mid-2009, domestic vitality in most developing countries resulted in a return to growth in auto production Xavier Fels in these areas. The contrast profoundly accelerated global production development, which swung geographically Chairman of CCFA towards developing countries; they represented 46% of global production in 2009 compared to 16% in 2000. In this difficult context, French automotive manufacturers focused on gaining market share in Europe and developing in emerging regions. In Western Europe, they took 22.4% (+0.8 point) of the passenger car market and 38.2% (+3.7 points) of that of light commercial vehicles. Outside EU-17, the market was affected by the crisis but nevertheless represented 35% of opportunities. The fall in global production was limited to 8%, and their share of global production grew from 8.2% to 8.7% in 2009. In France as in other major car manufacturing countries, the size of the sector (both upstream with equipment, goods and services and downstream in the networks) meant the fall in business had serious consequences. From the beginning of the crisis, the French government quickly supported the industry’s efforts; direct loans, the launch of scrap incentive schemes (nearly 600,000 vehicles involved at end 2009) and measures associated with temporary part time contracts encouraged controlled management of falling figures. On the industrial side, the Automotive Branch Platform (PFA), set up in 2009 by French manufacturers represented by CCFA, and their suppliers joined to form the CLIFA (Automotive Suppliers’ Liaison Committee) and produced its initial results with four key priorities: lean manufacturing, tomorrow’s expertise and businesses, better information and communication management and, finally, a mid- and long-term strategy in terms of products and international development. The perspectives for the French auto industry’s growth depend on factors shared by the industry as a whole, and on more specific elements. In 2009, the government organized the Industry Conventions which inventoried the competitive nature of the French industry compared to others in the eurozone. They highlighted the heavy load of employee social contributions, the changing payroll costs since 2000 and taxation related to production. These factors represent major obstacles to French automakers’ competitiveness as there are many production sites in France mainly supplied by French suppliers who are also penalized by this unfriendly environment. Furthermore, the intense competition on the European market, the first market opportunity for French manufacturers, further aggravates the branch as shown by the severe slump in operating margin (operating cash flow/value added) for the car industry measured by Insee; it has shrunk from 40% in the early 2000s to 7% in 2008. For CCFA and also for the Groupement des Fédérations Industrielles (GFI) and the MEDEF, the question of competitiveness is capital and a priority. COMITÉ DES CONSTRUCTEURS FRANÇAIS D’AUTOMOBILES / ANALYSIS AND HIGHLIGHTS_1 EDITORIAL For the factors more specific to the automotive industry, research and development spending which is huge (over the last few years, the industry has been the leading sector in terms of research and development investments and patents filed in France) has been maintained despite the crisis. Government measures to support innovation such as the research tax credit and the consolidation of automotive competitiveness clusters represent efficient levers for the future of our industry. Part of great national borrowing is for future transportation and therefore automobiles, and should complement this virtuous strategy. For the French market, results for 2009 vary with a 10% rise in passenger car sales thanks to efficient support measures and, on the other hand, extreme drops for commercial vehicles (–19% for light commercial vehicles and –38% for heavy trucks). For the first half 2010, the success of passenger car sales (+5%) still owes a lot to the scrap incentive scheme; light commercial vehicles are enjoying an upturn (+11%) whilst heavy trucks are still suffering (–24%). For the entire year, the effects of decreasing scrap incentive and “bonus/malus” schemes must be watched carefully. The change in average CO2 emissions for new registered cars in France in 2009 remains very positive with 133 g compared to 149 g in 2007. The share of small vehicles is very high; car purchases in household spending represent less than 3%, compared to 4.1% in 1990. The new car market in Western Europe was supported in several countries by the scrap incentive scheme and remained relatively stable in 2009. In 2010, the end of these schemes may heavily affect the market, which should register a fall. The market for light commercial vehicles dropped 28% in 2009 after falling 11% the previous year. Finally, the heavy truck market collapsed (–41%). As with France, the commercial vehicle situation is starting to turn around but levels are still low, particularly for heavy trucks. In Eastern Europe, many markets where French manufacturers are present collapsed, leading to a fall in opportunities outside Western Europe after several years of healthy growth. In Africa and South America, French manufacturers consolidated their results whilst they continued to develop in Asia. These economically booming regions with less car ownership and a demand for original equipment represent a market of large potential. The development and consolidation of industrial sites are still strategic objectives. 2009 was also marked by varied changes in how cars are used, illustrated by a development in global sales. On the one hand, passenger car registrations remained almost stable and, on the other, commercial vehicles (all tonnage combined) dropped by 15%. In France, households have continued to travel whilst companies, struck by a drop in business, have reduced the use of their commercial vehicles.