A measure to reduce diesel vehicle traffic
Towards the eradication of diesel in the capital
Since October 1st, some gas stations in Paris can no longer sell diesel, a measure voted in June by the Council of Paris to restrict the circulation of diesel vehicles. This decision concerns four TotalEnergies stations located on the périphérique (ring road) and aims to improve air quality in the capital. While this measure aligns with Anne Hidalgo's long-standing commitment, it has received mixed reactions, particularly among professionals who depend on diesel vehicles. TotalEnergies expects customers to shift to other nearby stations, which are less equipped to handle such an influx. This initiative could also inspire other French cities to adopt similar measures to reduce air pollution.
A measure to ensure fair competition
France's position vis-à-vis Europe and China
The new Minister of Foreign Affairs, Jean-Noël Barrot, affirmed that Paris fully supports the European Union's decision to impose additional tariffs on Chinese electric vehicles, aiming to establish more equitable competition. This surtax follows an investigation by the European Commission into subsidies granted to manufacturers producing in China, whether they are Chinese, European, or American. The measure, which plans a customs duty increase to 35%, could come into effect in November 2024. European deputies will vote on this proposal on October 4th, despite reluctance from some states fearing retaliation from China. For France, this decision strengthens Europe's economic and strategic autonomy.
A transformation of the historic site
Savings and new directions
Renault has officially decided to cease Formula 1 engine production at Viry-Châtillon to save 120 million euros per year and transform the site into a "center of excellence in engineering and high technology." Although F1-related activities will continue until the end of the 2025 season, this decision marks the end of 48 years of history for Renault in F1, where the brand won numerous world titles. Despite proposals from employees to extend the activity until 2026, Renault chose to redirect the site towards projects such as the future Alpine supercar and R&D on batteries. More than 300 employees and numerous subcontractors are affected by this decision. Finally, the closure of the F1 department could lead to a brain drain, according to employee representatives.
A major risk for the French automotive industry
A penalty that affects even city cars
Luc Chatel, president of the Plateforme Automobile (PFA), denounced the strengthening of the ecological penalty, calling it a "disguised tax" that would heavily penalize French motorists, including those buying small internal combustion cars. From 2025, the threshold for triggering the penalty could drop from 118 g/km of CO2 to 106 g/km, before reaching 99 g/km in 2027, thus impacting models like the Renault Twingo or the Toyota Aygo X. This measure aims to encourage sales of electric and hybrid vehicles, but it risks putting manufacturers in difficulty, as they are already seeing their sales stagnate. The French automotive market recorded an 11% drop in registrations in September 2024, and electric vehicle sales are no longer progressing sufficiently, threatening manufacturers' investments in this sector.
Heavy sanctions for manufacturers
The strengthening of taxes could lead to European fines for manufacturers who do not meet CO2 emission quotas, worsening the situation of the French automotive industry. The maximum penalty could reach €70,000 from 2025 for the most polluting vehicles, and the weight penalty will also become more severe, applying to vehicles weighing over 1,500 kg from 2026. This will even include some hybrids whose consumption is deemed too high. The new penalty scale could generate 316 million euros, but it risks deterring the purchase of internal combustion vehicles, including city cars like the Dacia Sandero. In 2027, this maximum penalty could reach €90,000, putting even more pressure on the automotive industry.
Consequences for employment and competitiveness
Luc Chatel warned that the French automotive industry is in danger, and that this tax surcharge could lead to job losses and a loss of competitiveness against foreign manufacturers. The president of the PFA called for a more coherent industrial policy at the French and European levels to support the industry. With a drop in registrations, stagnation in electric vehicle sales, and a market still far from its pre-Covid level, the future of the automotive industry in France seems uncertain.
Image article Paris: Photo by Earth
Image article Electric vehicle surtax: Photo by Anatoliy Gromov
Image article Formula 1: Photo by Carl Gelin
