France's 8 Billion Euro Stimulus Plan To Promote Electric Vehicle Sales

- May 28, 2020-

French President Macron recently announced that he will add an 8 billion euros aid program to the country's auto industry. In addition to stimulating car consumption through subsidies, the deeper intention behind the stimulus plan is to promote France's electric vehicle industry to the largest in Europe.

The 8 billion euro aid plan is mainly to provide 7,000 euros of government subsidies to consumers who purchase electric vehicles. It is also applicable to the purchase of new vehicles, or to buy old energy vehicles for new energy vehicles. At the same time, in order to help dealers sell 400,000 vehicles for sale due to the epidemic, Macron said that the purchase of traditional internal combustion engine models can also receive a subsidy of 3,000 euros. This policy applies to three-quarters of French families.

This 8 billion euro rescue plan does not include the 5 billion euro secured loan under discussion and the temporary unemployment benefits that the government has issued to employees in the automotive industry. The industry involves 400,000 jobs in France and more than 30 auto and parts manufacturers.

"Without those famous brands-Renault, Citroen and the logo, our country will be very different." Macron explained the government's policy when inspecting Valeo, a supplier of electric vehicle equipment in northern France The deep meaning behind this assistance plan is to become the leader of European “clean energy powered vehicles” by 2025.