Rindustrializing France has become an economic priority of the government that no one disputes today. French industrial policy, the spearhead of reindustrialization, has long been one of support for large groups, our national champions.
The question arises to what extent this policy has served economic growth and employment on French territory? Emmanuel Macron placed greater emphasis on strengthening the attractiveness of France: “Choose France”. What about this choice of industrial policy in the case of the automobile sector which is experiencing a revolution with the arrival of the electric car? Help national champions, or strengthen attractiveness to encourage foreign companies to set up in France?
For a long time, French economic policy aimed to defend the interests of large companies, of national champions. This has borne fruit since France has thirteen groups among the hundred largest multinationals in the world. This is important to fly the colors of France, but unfortunately, these multinationals invest and create wealth outside France: two thirds of their assets and 60% of jobs are located outside France! (source : ” World Investment Report 2021 », Unctad).
The case of the automobile industry is an example of this industrial relocation. According to statistics from the Committee of French Automobile Manufacturers (CCFA), Stellantis (for the ex-PSA brands) produced 74% of its light vehicles abroad in 2021, and this figure rose to 93%. for Renault (these percentages were 36% and 74% respectively in 2000).
Economic nonsense
The public authorities have tried to provide their support in exchange for maintaining the national champions Renault and PSA in France. But experience seems to show that the State has little influence, even when it helps businesses. In 2009, Nicolas Sarkozy made the granting of state-guaranteed loans to the two French manufacturers (6.5 billion euros in total) conditional on a commitment not to close factories in France or to relocate. This did not prevent Renault from transferring part of the Clio production from Flins to Turkey. PSA, for its part, closed the Aulnay-sous-Bois factory (Seine-Saint-Denis) by transferring production to Slovakia.
In 2023, the same scenario will happen with the electric car! Carlos Tavares, the boss of Stellantis, considers that there is no interest in producing vehicles in France with the same positioning as that of Chinese producers, cheaper by 20% to 25%, despite the explicit requests of Bruno Le Mayor, the Minister of the Economy. For Tavares, this is economic nonsense that he cannot justify to his shareholders. When the economic patriotism advocated by the government comes up against the wall of market logic as defined by the big bosses! It is not national sentiment that will lead Renault and PSA to build factories in France.
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