As France looks ahead to a 2035 deadline to phase out new combustion engine cars, workers in the auto industry are facing uncertainty about their future. While some regions, like the emerging “Battery Valley” in the north, show promise, workers in other parts of the country are feeling pessimistic. The transition to electric vehicles poses a significant challenge for the industry, which currently employs 200,000 people in France.
The shift to electric vehicles has already begun impacting communities like the one in Vouziers in France’s northeastern Ardennes region. Workers at a facility producing parts for tractors and trucks are facing a decline in demand for certain products due to the industry’s transition. The recent acquisition of the facility by a German fund specializing in turning around struggling firms has only added to the uncertainty, with plans to sell off the site looming.
On the other hand, the north of France is witnessing the construction of several battery “gigafactories,” including one by the Automotive Cells Company (ACC) in Douvrin. This joint venture between automakers Stellantis and Mercedes, along with TotalEnergies, aims to create a massive battery plant on the site of an existing engine factory. The initiative not only demonstrates a commitment to sustainability but also seeks to retrain employees from the original factory to work in the new battery facility.
While the transition to electric vehicles is expected to create around 17,000 jobs in battery manufacturing and recycling facilities by 2026, concerns persist about the fate of the current workforce in the auto industry. A study conducted in 2021 indicated that up to 65,000 jobs in the sector could be at risk by 2030 due to the shift to electric engines. Economist Bernard Jullien estimates that the auto parts sector alone could see job losses of up to 40,000 over the next decade or so.
There are growing concerns among union leaders about the potential offshoring of production in response to the shift towards electric vehicles. With manufacturers looking to reduce costs, there is fear that jobs in the French auto industry could be sent overseas, leading to a significant decline in overall employment. The example of Stellantis producing its new electric hatchback in Slovakia raises questions about the future location of car manufacturing in Europe.
While there are hopes that the electrification of cars could lead to the production of small vehicles in Europe, economist Bernard Jullien remains cautious. He believes that the industry may see a further decline in employment, potentially dropping below 100,000 workers. The looming changes in the auto industry in France paint a challenging picture for many workers who are already feeling the effects of the transition to electric vehicles.
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