Automobile: An Exceptional Conversion Bonus for the Purchase of a Hybrid from June 1st

Finance
Emmanuel Macron unveiled the main measures to save the automotive sector, hit by the Covid-19 crisis.

On the road on Tuesday, Emmanuel Macron presented the broad outlines of his “massive” support plan for the automotive sector, amounting to 8 billion euros.

“We all have one goal: to fight for jobs and the automotive industry, everywhere in France”. This Tuesday 26th May 2020, Emmanuel Macron presented his plan at more than 8 billion euros to support the automotive industry and its 400,000 direct jobs, facing “one of the most serious crises in [its] history. 

Direct from the equipment manufacturer Valéo’s plant in Etaples, in Pas-de-Calais, the president unveiled the main lines of his plan and confirmed the ecological orientation of France, which he wants to make “the first national production of clean vehicles in Europe. ”



Reinforcement of the electric premium

This is a “massive” support plan that Emmanuel Macron presented on Tuesday. The first axis on which it is based on ”  support for demand “, while 400,000 vehicles remain unsold to date, he explains.

It is therefore essential that the French “buy, and buy now” more vehicles, especially clean vehicles. Especially since on a larger scale, the European car market was divided by four in April after falling by half in March, compared to last year.

We must reconcile economic objective and ecological objective.

This is why the electric premium will be reinforced by means of “exceptional measures”. These measures correspond for individuals to 7,000 euros of purchase aid for an electric vehicle. Companies and communities benefit from 5,000 euros. Without forgetting the deployment of electrical terminals up to 100,000 terminals by 2021 .


An exceptional bonus for 3/4 of the French

The second major axis of support stated by the President of the Republic: the implementation of an exceptional conversion bonus for the purchase of a hybrid or electric vehicle. “This is a stimulus bonus [which] should facilitate the purchase of a vehicle,” says Emmanuel Macron.

“Three-quarters of the French” may be eligible for this aid, which can wait for 5,000 euros and will be available from June 1 “for 200,000 purchases to come.”

“It is an effort of more than a billion euros on the part of the State.”

Builders agree to relocate

Finally, Emmanuel Macron announced that resources would be advanced to support the sector, in particular in terms of “digitization”, “robotization” and development of “industry 4.0”. With the aim of making France “the first nation to produce clean vehicles in Europe”, with more than a million vehicles produced per year for five years.

To support this transformation of the industry, an investment fund will then be created, “up to 600 million euros”, while investments will be made for research and innovation in the “vehicle of the future”.

But this government aid requires a counterpart from the manufacturers, who have committed to relocating their productions to France. Like the PSA group, which has agreed to increase its production of hybrid and electric cars by 450,000 vehicles, or Renault, which must triple its production of electric vehicles by 2022.

Emmanuel Macron has also demanded guarantees for the employees of the Renault factories in Maubeuge and Douai (Nord), while a savings plan of two billion euros must be unveiled on Friday.

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