The automotive industry, what does it represent, and where is it going?

Published on : 01 November 20193 min reading time

Deindustrialisation is constantly increasing in France. As with machine tools, other manufacturing sectors are in danger of disappearing? You may have noticed that many small domains no longer exist today. This is the case for medical equipment. In the past, France was a world leader with products like Thomson-CSF.

Is the automotive industry in critical condition?

This question is frequently raised during discussions with friends, family or colleagues. It is hard to believe that this flourishing sector is likely to disappear in a few years’ time. Indeed, the French automotive industry has major brands such as Peugeot, Citroën and Renault. However, some people think that it is following the traces of the machine tool. Why do they have this point of view? It’s simple! Analysts have noted that the share of the automobile in the gross domestic product or GDP continues to decline from year to year. However, in neighbouring countries, such as Germany, this percentage is stabilising or increasing. The figures speak for themselves: while the French automotive sector accounts for 0.6% of GDP, the German sector accounts for almost 3%. (5 times more important).

Are French automakers at a dead end?

It is essential to point out that the Peugeot-Citroën and Renault-Nissan groups have not lost their power. Nevertheless, the problem comes from their relocation. This phenomenon can lead to a disappearance on the French side. For its part, the policy used by Germany has enabled it to retain most of its products. This strategy aims to play on quality in relation to price. As a result, the Germans are among the world leaders in the manufacture of high-end, most profitable cars.

The technological revolution, a threat or an asset for the country?

According to experts in the field, this revolution could have worsened the situation. In the eyes of the rest of the world, French manufacturers were not up to the demands. The arrival of the electric car has greatly disrupted the automotive world. This vehicle is distinguished above all by the absence of a clutch pedal and hundreds of precision parts. To meet the demands of international customers, giants such as Peugeot-Citroën and Renault-Nissan have been forced to update their equipment and models. Nowadays, the threat of the disappearance of the automotive industry is not imminent, but it still hangs over this sector.


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