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French Senate Warns of 'Deep, Lasting' Auto Crisis, Lays Out Emergency Measures

Lawmakers call for protectionist measures to buy time before the 2035 engine phaseout.

Overview

  • The report says the industry risks “disappearance” and warns of a “crash” if no action is taken, underscoring the sector’s fragility after years of offshoring.
  • Recommended steps include an 80% local-content requirement for vehicles sold in Europe, at least 40% locally produced batteries by 2035, and a postponement of the EU’s 2035 combustion-car sales cutoff.
  • The senators urge directing public support toward producing small, affordable electric cars to ease the cost burden on consumers and manufacturers.
  • Stellantis has paused production for several days at plants in Poissy, Sochaux and Mulhouse to match a weak European market, while unveiling a $13 billion U.S. investment over four years.
  • Renault says it is reflecting on possible adjustments after reports of 3,000 job cuts worldwide, with no decisions taken, as the sector—employing about 800,000 in France—faces a post‑Covid sales drop near 20% and intensified non‑European competition.