2024-11-09 17:18:00
After Michelin, degreasing risks continuing in French factories, fears the Minister of Industry. “There will probably be announcements of site closures in the coming weeks and months,” Marc Ferracci declared on Saturday at France Inter.
For him, the social balance sheet “will be counted in thousands of jobs”. And will particularly affect automobiles and chemicals, which are particularly weakened, and not only in France. But also in Germany.
A European ecological bonus for the automobile?
More broadly, for the automobile sector in difficulty, for which he announced an emergency plan, Marc Ferracci advocates an “approach to support the European automobile industry”, and not just the French one. “The value chains are completely integrated. You have suppliers in Germany for manufacturers who are in France, and you have suppliers who are in France for manufacturers who are in Germany. Commercial protection vis-à-vis Chinese vehicles must be designed at the European level,” insisted the minister who, the day before, had spent three hours on the site of one of the two Michelin factories slated for closure.
And in fact, France is not an exception. Across the Rhine Audi plans to cut 4,500 jobs in Germany. And Volkswagen, its parent company, whose results have deteriorated significantly, is also threatening to close three factories and cut tens of thousands of jobs.
Among the measures mentioned, the Minister of Industry is considering in particular “an ecological bonus on a European scale” or even a “common European loan” to finance “support mechanisms” for the sector. Measures which could, according to him, be implemented relatively quickly: “from 1is half of 2025, the European Commission said that it was going to prioritize a ‘clean industrial act’, that is to say European legislation on clean industry, in which we will be able to put in place a certain number of measures “, he actually argued.
For his part, the Minister of the Economy, Antoine Armand, also reacted during his visit to the Made in France Salon in Paris on Saturday morning. And he also highlighted the dangers that competition from China and even the United States represents for the automobile, as for other sectors. “We are in an extraordinarily demanding international situation with the cost of raw materials, the question of energy, aggressive commercial practices from many countries and therefore we must not be at all naive, we must we are extremely firm and extremely demanding vis-à-vis the other continental plates which create instability and create fragility,” he declared.
Chemistry struggling on both sides of the Rhine
Because the European automobile sector, where 32,000 job cuts were announced in the first half of the year, is not the only sector affected. In aeronautics, the defense and space branch of Airbus, which notably manufactures satellites and has 35,000 employees, is expected to cut 2,500 jobs in 2026. Marc Ferracci indicated that he would ensure that there were no layoffs, employees intended to be reclassified in other Airbus entities.
Already heavily exposed to Chinese competition for twenty years, European chemistry is also struggling, hit by the energy crisis. In France, where already a thousand job cuts have taken place in recent months at Solvay, Syensqo, Weylchem Lamotte, but also in Germany. While across the Rhine the sector remains the first in the world until now, chemical manufacturers are paying the consequences of the loss of cheap Russian gas due to the war in Ukraine: Unilever, Evonik, BASF have thus also announced workforce reductions.
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**Interview with Marc Ferracci, French Minister of Industry**
**Interviewer:** Welcome, Minister Ferracci. You’ve recently expressed concerns about potential site closures in French factories, particularly after the situation with Michelin. Can you elaborate on what the industry is facing right now?
**Marc Ferracci:** Thank you for having me. Yes, it’s a challenging time for our manufacturing sector, particularly in the automotive and chemical industries. We are likely to see announcements regarding site closures over the coming weeks and months. The social impact of these closures could result in thousands of job losses, not just in France, but also affecting our German counterparts as well.
**Interviewer:** You mentioned an emergency plan for the automobile sector. What specific measures are you considering to support this industry?
**Marc Ferracci:** We need a comprehensive approach to support the European automobile industry as a whole. Our supply chains are highly integrated across borders—suppliers from Germany provide parts for French manufacturers and vice versa. That’s why we need a collective European response to address challenges, particularly with the rising competition from Chinese vehicles. I am advocating for a European ecological bonus and common loans to finance support mechanisms for our sector. These measures could be implemented relatively quickly, with the European Commission prioritizing a ‘clean industrial act’ expected by the first half of 2025.
**Interviewer:** Audi and Volkswagen are also facing job cuts and factory closures in Germany. How does this situation in Germany influence the steps you’re taking in France?
**Marc Ferracci:** The decline of major automotive players like Audi and Volkswagen directly affects France. The approach must be pan-European because these issues do not recognize borders. When one part of the industry struggles, it creates a ripple effect throughout the continent. Therefore, the support we provide must be unified to ensure the sustainability of our entire automotive ecosystem.
**Interviewer:** how optimistic are you about reversing these trends in the manufacturing sector?
**Marc Ferracci:** While the challenges are significant, I remain cautiously optimistic. We have a resilient workforce and skilled industries in France and across Europe. The key will be our ability to implement supportive policies quickly and effectively, drawing on European unity to create a future-proof manufacturing landscape that can compete globally.
**Interviewer:** Thank you for your insights, Minister Ferracci. We appreciate you taking the time to discuss these important topics.
**Marc Ferracci:** Thank you for having me. It’s essential we keep this conversation going to ensure a sustainable future for our industries.
