Macron's $8.8 billion plan would make France Europe's top clean car producer

Source PSA

The intention, Mr Macron mentioned, is to have a million electrical automobiles being made in France yearly by 2025.

Beginning subsequent week, customers can stand up to 12,000 euros from the federal government for purchasing an electrical automotive beneath the "historic" plan unveiled Tuesday by French President Emmanuel Macron.

"We welcome the purchase incentive scheme which should promote the energy transition with aid meant to increase the market share of electrified vehicles and to accelerate the renewal of old vehicles with more virtuous vehicles". Macron tweeted that the government's support for the national auto industry, which includes brands like Peugeot-Citroen and Renault as well as parts suppliers, will increase "massively".

"It's part of our company, it's thousands of jobs", the president tweeted.

The French government is its single biggest shareholder with a 15% stake, and has been in talks over a 5 billion-euro ($5.5 billion) loan guarantee to help the company survive.

French President Emmanuel Macron, second left, Valeo CEO Jacques Aschenbroich, third left, and general manager Alberto Santos, fourth left, tour a factory of the auto supplier in Etaples, France, on Tuesday. "In return, the auto manufacturers have committed to relocate value-added production to France and to consolidate and maintain all industrial production at our sites", the president said.

Renault also vowed to build electric motors at a site in northern France, and said it would join a venture between French energy company Total SA and PSA that aims to challenge Asian dominance in battery production.

The new plan includes Government subsidies to encourage consumers to scrap their old cars and buy lower-emissions models and longer-term investment in innovative technology. France is now the first major European country to announce coronavirus stimulus incentives, with Germany soon to follow in June.

Expected on Wednesday, Renault and Nissan will make a joint statement about the future of his Alliance.

The French authorities has introduced an €8bn (£7.1bn) rescue plan for its auto industry, which has been severely impacted by the coronavirus pandemic.

As part of a multibillion-euro package to keep France's auto industry afloat, its government is offering up to €7,000 for new EV buyers.

Renault is nearing an awarded a roughly $4.4 to $5.5 billion (€4 to €5 billion) credit line from the French government, and will become the third partner next to PSA and Total subsidiary Saft - in a multi-billion-dollar venture to manufacture electric vehicle batteries inside the European Union - as of writing, the lion's share come from South Korea and China. PSA reported report earnings final yr, however has additionally seen gross sales plunge amid virus lockdowns.

US automakers haven't obtained direct authorities assist but however automotive sellers and auto suppliers can apply for low-interest loans.

A decision on the issue could come as early as next week.

As part of the support plan, Renault (RNO.PA) will get a state-backed loan of €5bn.



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