French worker can no longer afford the car he no longer builds

In 2025, new car registrations in France are expected to drop 5% from 2024, with nine out of ten French people finding vehicles too expensive. The average price rose 24% from 2020 to 2024, from €28,107 to €34,872, per the Institut Mobilités en transition.

Jean-Pierre Robin's chronicle highlights a crisis in the French automotive sector. The 2026 barometer from the Cetelem observatory, surveying 15,774 motorists across Europe including 3,144 in France, shows 90% of French people deem new cars unaffordable. This is no mere perception: data from the independent Institut Mobilités en transition (IMT) confirm a 24% rise in the average new vehicle price from 2020 to 2024.

This surge stems from multiple factors piling up since the Covid-19 pandemic. Factory shutdowns in 2020 led to a global chip shortage, critical for the auto industry. The Ukraine war drove up raw material costs, as manufacturers shifted to higher-end models to boost margins. Accelerated vehicle electrification has also played a role.

Robin wryly notes that the French worker, once the builder of these machines, can no longer afford one—nor possess the skills to make it. This points to a 2025 marked by ongoing sales decline, underscoring the economic and social challenges in the sector.

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The German government is introducing a new purchase premium for electric cars, retroactive for vehicles newly registered since the start of the year. Subsidies ranging from 1,500 to 6,000 euros will be available based on income and family status. Environment Minister Carsten Schneider views it as a boost for the domestic automotive industry.

Starting January 1, 2026, France implements a range of measures impacting personal finances, housing, transport, and the environment, amid the lack of an adopted state budget. Key adjustments include a 0.9% increase in basic pensions, the suspension of the MaPrimeRénov’ scheme, and price rises for gas and postal packages.

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新たなデータによると、テスラの欧州での電気自動車販売は2025年に2024年比27.8%減少した。登録台数は競争激化と政策変更の中で32万6千台から23万5千台に落ち込んだ。この減速は、EV市場でのブランドの勢いについて疑問を投げかけている。

2025年の世界興行収入が12%増の335億ドルとなった一方、フランスは例外的に13.6%減の1億5679万人の入場者数と推定11億7000万ドルの収益を記録した。ディズニーがアニメとブロックバスターでトップを独占し、地元作品は37.7%の強い市場シェアを維持した。年末の回復が2026年の回復への希望を示している。

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Debates on the 2026 budget in the French National Assembly are bogging down, with unusual alliances between RN, PS, and MoDem leading to the adoption of tax increases totaling 34 billion euros in 24 hours. Prime Minister Sébastien Lecornu describes the situation as a 'very uncertain endurance race', while general rapporteur Philippe Juvin deems it highly likely that the text will not be examined on time. Industrialists denounce overtaxation threatening reindustrialization.

On Friday, December 19, the Insee announced that France's public debt now stands at 3,482 billion euros, or 117.4% of GDP, a record level outside times of war or pandemic. This increase of 65.9 billion euros over three months highlights a worrying trajectory, with analysts warning of a potential market crisis if no correction occurs.

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On January 13, 2026, the French National Assembly resumed examination of the 2026 finance bill, following the failure to reach agreement in the joint parliamentary committee in December. Economy Minister Roland Lescure assured deputies that the text is "within reach," urging a final effort for compromise. Yet few lawmakers believe it can pass without invoking article 49.3 or using ordinances.

 

 

 

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