According to media reports, France's new Industry Minister, Marc Ferracci, aims to establish an aid plan for the European automotive industry, focusing on aligning electric vehicle (EV) purchase subsidies across EU member states. He also intends to revise CO₂ emissions reduction targets for automakers.
In an interview with German media, Ferracci proposed that EU countries adopt France's current EV subsidy model, which allocates subsidies based on factors like CO₂ emissions during vehicle and battery production. This approach effectively excludes vehicles manufactured in China from eligibility.
To further stimulate demand, Ferracci called on the EU to create an initiative focused on electrifying commercial fleets. He stated that details still need to be discussed with all EU partners but emphasized that "in principle, we should prioritize subsidies for European-made cars, such as purchase incentives or investment subsidies, similar to our competitors."
Ferracci acknowledged that Chinese-made EVs are "cheaper and more innovative," adding that Europe faces challenges related to both competitiveness and demand. He noted that Europe's automotive sector must make "significant investments" in electric mobility. "The future of our automotive industry depends on finding solutions to these major challenges," he said.
In his interview, Ferracci reiterated France's support for imposing additional tariffs on EV imports from China, a stance opposed by the German government. He argued that the European Commission's investigations clearly show that China subsidizes the entire EV supply chain.
Ferracci also remains committed to the goal of banning the registration of new internal combustion engine vehicles in the EU from 2035. However, France seeks to delay the EU-wide fleet CO₂ emissions reduction targets, set to take effect in January 2025. France has requested that the European Commission refrain from penalizing manufacturers who fail to meet these targets, as EV demand is falling across member states.
Last month, Ferracci remarked that public procurement and corporate fleets would play a crucial role in driving EV demand. "We need to support EV demand through various efforts, including incentives, penalties, and corporate and public fleet initiatives," he said. He added, "We will use all available tools to the fullest extent."
