A himme monitors on his tablet, digital the programming of an automobile production line

Will the automotive sector pass the climate test?

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With the Citizens’ Climate Convention and the resulting Finance Act 2021, the automotive sector is invited to go green,no matter what it costs… Incentives, investment support… Now is the time for the automotive industry to reach a milestone, except to go beyond the point of no return.

Incentives for electric driving

By 2021, two main measures are expected to be adopted for the automotive sector (1). The maintenance of aid for the purchase of electric vehicles (up to 7000 euros), but the amounts of which will be gradually reduced. In addition, the electric vehicle insurance contract should be slightly more affordable, given a reduction in related taxes.

Conversely, the Automobile Bonus/Malus persists. Thus, it should influence sales, since it will take into account the weight of the vehicles. The threshold for triggering the Malus to increase the purchase bill will increase to 133 grams of CO2 per kilometre (instead of 138 grams), with a ceiling of 30,000 euros. Enough to encourage buyers to turn to more “clean” vehicles… Or to negotiate down the purchase amount, reducing the margins of concessions.

The FNA (National Automobile Federation), for its part, regrets the lack of measurement in relation to the ecological management of vehicles on the road. In fact, no measures are planned for the ecological maintenance of a fleet still composed of more than 40 million vehicles. This makes it the main source of emissions for the automotive sector, of CO2, as well as of particles.

Automotive production line industry
The automotive industry must move towards an innovative and sustainable future.

Investing to innovate, the automobile of tomorrow will have to see far and hard

Indeed, the current crisis situation (and its premises in recent years…) are an opportunity to “hit a big blow”, or else not to recover. With regard to the automotive sector, the Relance Plan (3) provides for a substantial budget of 1.9 billion euros. This money will be mainly allocated in the coming years to the renewal of the fleet in favour of electric vehicles.

In addition, the focus is on reducing greenhouse gas emissions. In the case of a massive re-industrialisation of car production in France, the aim is to open the market to Europe by strengthening “leaders” in the automotive sector. The automobile of the future will be “connected and decarbonized”, or will not be…

A support fund of more than 200 million euros should be available as early as this year to encourage car investment. The aim is to make the French automotive industry a state-of-the-art, modern and uninhibited industry, as well as sustainable.

With BPI, the automotive industry is preparing its roadmap

BPI France has just launched its call for projects as part of the Relaunch Plan for Industry. Until November 17, companies can submit their project online. Among key industrial sectors such as aeronautics and healthcare, the automotive sector is also supported. The projects financed will have to be part of a diversification of the sector, the modernization of industrial sites, or the environmental performance of production.

A fairly broad framework allowing a case-by-case assessment by BPI France. Thus, the specifications filed will have to start, for the automobile at a minimum of 200,000 euros. Aid varies according to many criteria, and will be concentrated in the form of grants, to the tune of 20% to the minimum. The application is done online,until the fund is exhausted.

Sources:

  1. Finance Bill for 2021
  2. FNA, Press release of September 24, 2020.
  3. Relaunch plan, automotive component
  4. Calls for BPI project
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