The country of France is the latest European nation to back out of a controversial energy treaty on Friday. The treaty is believed to be incompatible with the Paris climate accord.
President Emmanuel Macron revealed that France would be withdrawing from the Energy Charter Treaty on the sidelines of the European Council summit in Brussels.
“We have decided to withdraw from the Energy Charter Treaty, first because it’s in line with the positions we’ve taken, notably the Paris Accord and what it implies,” he said at a press conference.
“The war on European soil must not make us forget our climatic requirements and our imperative to reduce CO2 emissions,” he added.
The Energy Charter Treaty was signed in 1994 and has more than 50 signatories, including the European Union, and is meant to promote “international cooperation in the energy sector.”
Previously, the Netherlands, Spain, Poland, and Germany had all backed away from the treaty. Italy was the first to back out in 2016 after it felt the treaty wasn’t in the best interests of the industry.
The Dutch climate minister believes that the treaty can prove harmful to fossil fuels. Macron’s decision may prove detrimental to the French car industry but can open doors to collaboration between European countries when it comes to the climate.
YouTube Link; https://www.youtube.com/watch?v=1HBwLT73K40
French car sales have plummeted to new lows, as they fell for the 10th month of the row. The car sales for French car in France fell by 10 percent during the month of May. This is the 10th month on the trot that car sales within France have failed to register any significant gain.
The spring season is supposed to be good for the sales of new cars, but this year, we haven’t seen any such trends. The year 2022 hasn’t been good for car sales in the nation of France, as car sales have only been going down.
The semiconductor shortage across the world has led to slow deliveries in the country. The market for French cars has fallen down by over 16.92 percent during the year alone. Additionally light commercial vehicles have seen a fall of 25 percent, which is unprecedented. No other year saw such depleting levels of financial activity, besides 2020, which was marred by the onset of the COVID-19 pandemic.
The falling sales can be accredited to rising costs of living, with many people shying away from luxuries. Automobile manufacturers also predict that consumers are waiting for better options in the hybrid market to invest in them.
YouTube Link: https://www.youtube.com/watch?v=S4kjokRL3MQ
French car maker Renault has been stealing the headlines for long now, and has promised now that the move to make two business units for electronic and conventional car production could each employ over 10,000 staff members by the end of 2023.
Renault recently released a statement and mentioned that it was currently assessing options and was in the move towards fossil-free vehicles.
“The aim of these strategic reflections is to adapt each technology, drawing on the group’s strengths and expertise on its various markets and within the Alliance”, Renault said.
Managers at Renault reiterated that jobs for EV production within France will bundle up, while workers for the production of conventional cars will be located abroad. Sources from earlier in the year had revealed that Chief Executive Luca de Meo was interested in splitting up the group, despite the potential cost overruns that it would lead to.
Renault is currently playing catch with rivals like Volkswagen and Tesla, both of whom have shot up ahead in the electric vehicle market. Several groups of workers are already being outlined for the shift in operations. There will be thermal, as well as hybrid and electric productions.
YouTube Link: https://www.youtube.com/watch?v=WSH983zUNIo
French Car manufacturer and automotive giant Renault has shut down its operations in the city of Moscow, Russia after officials in Kyiv called for a boycott of Russia and the company. The current presence of Renault in Russia was brought to the fore multiple times and has been a matter of contention since long.
The growing tensions go to prove that it is time for Renault to shut down operations in Russia and side with Ukraine.
“Renault Group has to revise its 2022 financial outlook with a Group operating margin of around 3 percent versus at least 4 percent previously,” it said.
Ukraine’s foreign minister on Wednesday called for a global boycott of Renault over its earlier refusal to leave the Russian market in the aftermath of the Kremlin’s invasion of Ukraine.
“Renault refuses to pull out of Russia,” Foreign Minister Dmytro Kuleba said on Twitter ahead of the company’s announcement. “I call on customers and businesses around the globe to boycott Group Renault.”
Renault is particularly exposed as it invested in AvtoVAZ alongside Rostec, a state-owned defence conglomerate run by a sanctioned close ally of Russian President Vladimir Putin.
“Regarding its stake in AvtoVAZ, Renault Group is assessing the available options, taking into account the current environment, while acting responsibly towards its 45,000 employees in Russia,” the statement said.
YouTube Link: https://www.youtube.com/watch?v=7cYnA9I5tHY
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.
YouTube Link: https://www.youtube.com/watch?v=DRpkswfgPY4
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