Urgent Calls for Action Amid Crisis in French Automotive Industry
The French automotive industry faces a severe crisis, prompting urgent political calls for action.
Key Points
- • French automotive production dropped from 1.5 million in 2023 to 1.36 million in 2024.
- • 85% of equipment manufacturers face risks of relocating production to lower-cost countries.
- • The sector has lost 17% of its workforce since 2019 and 50% since 2007.
- • Industry leaders are calling for immediate political action to prevent further decline.
The French automotive industry is currently in a severe crisis, particularly highlighting the dire circumstances faced in the Franche-Comté region, where the sector employs over 42,000 individuals and constitutes approximately 25% of industrial jobs. As reported, vehicle production has sharply declined from 1.5 million units in 2023 to just 1.36 million in 2024, indicating a staggering 63% drop since 2002. This downturn represents a critical blow to the industry, which has already seen a 17% reduction in workforce since 2019 and a dramatic 50% reduction since 2007.
During a recent meeting in Besançon, industry leaders including Jean-Louis Pech, president of the Federation of Equipment Manufacturers for Vehicles (FIEV), stressed the urgency of the situation. Pech lamented, "Without a robust industrial policy, we risk losing not just jobs, but also our national sovereignty in the automotive sector. It is clear that our competitiveness is eroding, and we are falling behind countries like Germany that currently produce three times more vehicles."
New data from a FIEV survey conducted in March 2025 revealed that a staggering 85% of the surveyed equipment manufacturers are at risk of 'dessourcing.' This term refers to potential relocations of production to countries with significantly lower labor costs. Amid these challenges, the industry is faced with imminent threats as about ten production sites in France may close in the upcoming year. Additionally, some companies have already made drastic workforce cuts, reducing their staff by as much as 30-40%.
Industry representatives voiced their frustration at the lack of political response to this crisis, calling on government officials to take immediate and concrete action to support the automotive sector. Pech and others warned of dire consequences if prompt measures are not enacted, including the possibility of irreversible damage to the industry's structure within the next three to four years. They urged the government to recognize and act on this escalating crisis, which is jeopardizing not only jobs but the very fabric of the national automotive industry.
As the pressure mounts, the future of not just the automotive sector but also the economic health of regions like Franche-Comté hangs in the balance, prompting urgent calls for leadership and intervention from top government officials to avert a deeper industrial crisis.