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2025 | OriginalPaper | Chapter

7. Is Electrification an Opportunity or a Threat? The French Automotive Industry at the Crossroads

Author : Tommaso Pardi

Published in: Global Shifts in the Automotive Sector

Publisher: Springer Nature Switzerland

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Abstract

The French automotive industry has faced significant challenges over the past two decades, with production levels returning to those of the 1960s and substantial job losses. The rapid push towards electrification, driven by EU regulations, is seen as both an opportunity and a threat. The industry's decline is attributed to regulatory upmarket drift and the relocation of production to low-wage countries. Previous government interventions have failed to address these structural issues, and the current electrification strategy faces similar hurdles. The chapter examines the potential for electrification to reverse the sector's decline, highlighting the need for a radical change in the EU regulatory framework to support the production of small, affordable electric vehicles. It also discusses innovative policies and industry proposals that could pave the way for a more sustainable and competitive French automotive sector. The future of the industry hinges on the political compromises and strategic choices made in the coming years, with the potential to either revitalize the sector or accelerate its decline.
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previous chapter The German Industrial Model in Transition: Electromobility Challenges in the Automotive Sector
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Footnotes
1
Interview with a member of the PFA direction (March 2022).
 
2
Interview with a former Renault director (June 2024).
 
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Metadata
Title
Is Electrification an Opportunity or a Threat? The French Automotive Industry at the Crossroads
Author
Tommaso Pardi
Copyright Year
2025
Book
Global Shifts in the Automotive Sector

Print ISBN: 978-3-031-80640-7

Electronic ISBN: 978-3-031-80641-4

Copyright Year: 2025

DOI
https://doi.org/10.1007/978-3-031-80641-4_7

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