New research by consulting firm AlixPartners shows that the French automotive industry could lose as many as 52,000 jobs by the end of the decade due to the accelerating transition to electric vehicles.
According to the report, commissioned by the French car lobby La Platforme Automobile, the auto industry’s workforce could shrink between 15% and 30%.
The study shows that vehicle content from French suppliers will drop around 11% as auto makers are ramping up in-house production of some components like batteries through joint ventures.
Electric vehicle sales in France have tripled in the past two years. The increase is partly due to the EV bonuses granted under the country’s recovery plan.
Electric and plug-in hybrid vehicles accounted for almost 16% of light vehicle registrations in France as of June, according to Cecile Goubet, general delegate of the National Association for the Development of Electric Mobility. He told EURACTIV that there were more than 620,000 plug-in electrified vehicles on the road in the country.
For more stories on economy & finance visit RT’s business section