Sales in the French car market slumped by a massive 35 percent as a semiconductor shortage curbed inventories in one of the biggest markets in Europe. French car manufacturers had limited access to semiconductor chips, which are an integral part of electronic cars.
French manufacturers recorded some 115,713 passenger cars sold during the month of July, as per reports from Plateforme Automobile. While the sales show an increase of some 16 percent from where they were during the same time last year, because of the first wave of the pandemic, they have also witnessed a decrease of 35 percent from the full capacity sales of 2019.
The sluggish results are also an indication that recovery for auto manufacturers is slow within Europe compared to the trends seen in the United States and China. A recent report from The European Automobile Manufacturers Association showed that over 2 million fewer cars were sold within the region during the first half of this year than during the same period 2 years ago.
The recovery itself is slow due to restricted customer interest, but supply chain hassles, like the global chip shortage of today, have restricted sales to a certain level.
YouTube Link: https://www.youtube.com/watch?v=tl3GegKr_xw
French car maker and renowned global automotive brand Renault mentioned that it is looking to combine manufacturing plants for possible cost savings. In a statement released recently, the car manufacturer showed interest in combining three electric car manufacturing plants in Northern France to form a conglomerate, which will save production costs and churn out more than 400,000 auto vehicles each year by 2025.
Renault also mentioned that the single electric vehicle plant, which will be called Renault ElectriCity would help create 700 new jobs across the three plants, which already employ 5,000 people when combined.
The company is facing a stiff challenge in the electric car market, with rival Volkswagen catching up in the market. Changes such as these “will contribute to reaching the necessary competitiveness to produce B segment cars in France“, the plant manager said, referring to smaller passenger vehicles, which are popular in France.
Renault, which has been operating under a loss recently, is looking to not only slash costs but also reduce its workforce under new CEO De Meo. The car manufacturer is looking to shift attention towards the electric car market and open new revenue streams and cost savings here.
YouTube Link; https://www.youtube.com/watch?v=dvyDiWSUk8A
New car registrations in France for the month of March 2021 reported an almost 200 percent increase as the figures were hit by the pandemic during the corresponding months last year.
France’s CCFA association of carmakers released a statement prompting the press that car registrations were marked at 182,775 for the last month. This figure is lower than the average of 210,000 cars usually registered in March, but was many times more than what was seen last year.
Overall, the French car market saw a 21.1% increase in registrations for this quarter, a massive improvement from the first quarter of 2020.
Last year in March, French Car Manufacturers PSA reported that their car registrations fell by a massive 73.43%. This is a record fall and is a severe shock to embittered manufacturers.
PSA is responsible for making cars for the Peugeot and Citroen brands. Additionally, Renault also reported a 71.6 percent drop in their registered vehicles. This total drop will harm the economy as consumers have literally altered their spending patterns.
Whether the world ever comes out of the COVID-19 pandemic is yet to be seen, but what we do know is that the French Car industry is on its way to revival.
YouTube Link: https://www.youtube.com/watch?v=NUBL2IlORFU
The top auto markets in Europe posted their biggest annual decline in decades, due to the ongoing restrictions imposed because of the coronavirus. Car sales have hit rock bottom as economic downturns and social restrictions have taken demand to an all-time low.
Registrations fell by a whopping 25 percent across the UK, France, Italy, Germany and Spain during the last year. These are 5 of the largest car-buying countries in Europe, and the steep decline has given marketers quite a lot to think about.
The resurgence of COVID-19 in Europe through a fresh new wave has meant that countries now have to impose new lockdown measures. These ongoing weaknesses in demand now pose a heavy risk to the manufacturing sector and the demand from masses.
“We are in a deep crisis,” Pierre-Louis Debar, head of statistics for French car-industry group CCFA, said during an interview. “It’s more extensive than anything we have seen in the past.”
The French car market has also gone down with a decrease of almost 30 percent in vehicles registered during 2020. The second half of 2020 did see a recovery though, after the country reported an almost 90 percent drop in vehicles registered during March, after the early onset of the pandemic.
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A French Media Daily has reported that French automobile giant Renault has earmarked three of its manufacturing and assembling factories for an early closure in France. The move has come as a result of the recent COVID-19 pandemic, as companies reel from lowered consumer interest toward automobiles.
Renault as a company has plenty of fixed costs to cover and the company might not be able to continue on this trend going into the future. According to reports from the newspaper, it is the Alpine A110 producing factory on the outskirts of Paris that will be the first to shut down.
Similarly, Renault will also shut down another facility located at Flins.
Recently, thousands protested on the streets of France against the job cuts on the cards by Renault.
“It’s an earthquake that is taking place. We want to keep our company here,” Jerome Delvaux, a union member, said.
“This demonstration today is very important, even if it is a first step, to show the government and Renault that workers and residents of this area are committed to this company and that we have support,” Delvaux added.
“We need these jobs, otherwise it’s a whole territory that will die,” he said.
The company is looking to target savings, but these savings have certain repercussions that it isn’t accounting for.
YouTube Link: https://www.youtube.com/watch?v=xNIOehncMj4
Car sales in the French market have come to a screeching halt as the country reels from the impact of the Coronavirus lockdown. March saw a steep contraction of 72 percent, but the downfall for April has been even more severe. All businesses deemed non-essential, including auto dealers, have been closed since March 17th.
Only 20,000 units were sold during the month of April, out of which 17,000 were sold by the two biggest automaker models in France, PSA and Renault.
“There were some deliveries, some car registrations, especially by Renault and PSA, for medical staff, government workers and individuals who had ordered and already paid for their cars,” Francois Roudier, spokesman for the CCFA, told AFP.
Looking ahead, “it will be the recovery plan that determines the state of the market over the year,” Roudier said. “There are a lot of unknowns.”
The unknown factors in the market include speculations over when the lockdown will be lifted and by when we can expect a full fledged return back to normalcy. Until then, consumers and buyers would have to live and bear with the reduced sales and market growth in the automotive sector.
YouTube Link: https://www.youtube.com/watch?v=yZQUEOrS3bA
Corona is at play and the world seems to be suffering at its hands. Almost all financial, sporting, business and other activities have come to a standstill because of the impacts of COVID-19. While the virus has struck hard all over the world, Europe seems to be hit the most by it. France, Spain, England, Italy and Netherlands are all reeling from it.
The repercussions of COVID-19 include a lockdown across all countries of Europe. What this has meant is that there is little to no financial and business activities happening around.
The impact of the virus was also felt by the French car registration agencies. French Car Manufacturers PSA reported that their car registrations fell by a massive 73.43 percent in March. This is a record fall and is a severe shock to the embittered manufacturers.
PSA is responsible for making cars for the Peugeot and Citroen brands. Additionally Renault also reported a 71.6 percent drop in their registered vehicles. This total drop will harm the economy as consumers have literally altered their spending patterns.
Whether the world ever comes out of the COVID-19 pandemic is yet to be seen, but what we do know is that the French Car industry is suffering damage beyond repair.
YouTube Link: https://www.youtube.com/watch?v=NUBL2IlORFU