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France Vows Aid as Diesel Market Fades
France’s finance minister will meet with the country’s auto industry leaders in April to find ways to help them cope with rapidly shrinking demand for diesels.
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France’s finance minister will meet with the country’s auto industry leaders in April to find ways to help them cope with rapidly shrinking demand for diesels.
Bruno Le Maire says the government aims to help large companies “manage the transformation toward gasoline, hybrids and electrification,” Agence-France Press reports.
France employs an estimated 12,000 people whose work relates to diesel engines or their components.
Government tax policies made France enabled diesels to capture 73% of the country’s new-car market in 2012, according to market analysts JATO Dynamics. But that share dwindled to 47% last year, as demand for diesels across Europe fell 8%.
France’s two domestic carmakers, PSA Group and Renault SA, have been scrambling for months to retool engine plants to make more gasoline engines. In the meantime, PSA has been importing such engines since last July from its Chinese joint venture with Dongfeng Motor Co.
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