The deadline set by France to phase out new combustion engine cars by 2035 has sent ripples of uncertainty through the auto industry. While some regions, like the emerging “Battery Valley” in the north, are optimistic about the shift to electric vehicles, workers in other parts of the country are not as hopeful. With the sale of petrol and diesel cars set to be banned in Europe in a decade, the industry that currently employs 200,000 people in France is facing a significant transformation. Workers at parts suppliers, like the facility in Vouziers, are particularly concerned about the impact of this shift. Despite being bought by Walor, a German fund, in 2018, the lack of investment in transitioning to EV production has left many employees fearing for the future of their jobs. The transition is likely to result in changes in demand for certain parts, potentially leading to closures and layoffs.
The Contrasting Realities in Different Regions
While facilities like the one in Vouziers are grappling with the effects of the transition to electric vehicles, other parts of France, especially in the north, are experiencing a different reality. The establishment of several battery “gigafactories,” such as the one in Douvrin run by the Automotive Cells Company (ACC), has brought a sense of optimism to the region. The joint venture, involving automakers Stellantis and Mercedes, along with TotalEnergies, aims to create a sustainable future for auto workers by retraining them for roles in battery production. The shift towards gigafactories is expected to create thousands of new jobs in the sector by 2026, offering a glimmer of hope amidst the looming challenges faced by the industry.
Despite the potential for job creation in the gigafactories, concerns remain about the overall impact of the transition to electric vehicles on employment in the French auto industry. Studies suggest that tens of thousands of jobs in the sector are at risk as a result of the shift away from petroleum-fueled engines. Economists like Bernard Jullien predict significant job losses in the auto parts sector over the next decade, with the possibility of overall employment in the industry dropping to 100,000 or even less. The fear of offshoring production, as seen in the steel industry, further complicates the future outlook for auto workers in France.
As the French auto industry navigates the uncertainties brought about by the transition to electric vehicles, the need for strategic planning and investment in workforce retraining becomes paramount. While the establishment of gigafactories offers new opportunities for job creation, there is a pressing need to ensure that existing workers are not left behind. Initiatives to retrain and upskill workers for roles in battery production and other emerging sectors could help mitigate the impact of job losses in traditional auto manufacturing. Collaboration between industry stakeholders, policymakers, and labor unions will be essential in shaping a transition that is inclusive and sustainable for all those involved in the French auto industry. The road ahead may be challenging, but with the right strategies in place, the industry has the potential to adapt and thrive in a rapidly changing automotive landscape.