Automotive Sector Support Plan

Country / jurisdiction: France · Year: 2021 · Status: In force · Level: National · Type: Voluntary

The French Automotive Sector Support Plan enacted in May 2020  incorporates the following measures:

-The French government granted EUR 295 million to the automotive sector at the outset of the Covid-19 crisis. A EUR 5 billion state-guaranteed loan was also extended to the Renault company.

-An investment fund was created to ensure the financial sustainability of the industry, with BPI France, the state, and two companies (Renault and PSA) as main holders (EUR 100 million per stakeholder). Total available financial support for supply chain companies in the automotive sector will amount up to EUR 600 million.

-An additional funding scheme will support future investments to modernise the auto industry, subject to hydrogen technology-based production and production requirements for electric vehicles (EV), with EUR 200 million available as of 2020.

-Additional support for R&D amounting EUR 150 million will also be allocated over 2021-2025 under the framework of the 4th Investment Programme for the Future, so as to encourage innovation in thermal vehicles emission reduction, EV autonomy increase, EV production supply chain, batteries and electronic power forces, as well as hydrogen-based vehicles.

-French and German companies (SAFT, and PSA auto construction) will support industrial development of electronic batteries, to produce lithium-ion cells for EV batteries. The project will be allocated 850 million EUR, including 690 million EUR from the government.

Official source: https://www.economie.gouv.fr/files/files/directions_services/covid19-soutien-entreprises/DP-Plan_soutien_automobile26052020.pdf