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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Sébastien Lecornu announces targeted fuel aids amid Middle East conflict-driven price surge, with skeptical public reaction.
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Sébastien Lecornu promises new targeted aids amid fuel price surge

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Prime Minister Sébastien Lecornu announced in Bordeaux new targeted aids «early next week» to counter the fuel price surge linked to the Middle East conflict started over a month ago by US and Israeli strikes on Iran. He assured there was no shortage in the country. The French public expresses strong skepticism about the government's effectiveness.

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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New data shows Tesla's electric vehicle sales in Europe dropped 27.8% in 2025 compared to 2024. Registrations fell from 326,000 to 235,000 vehicles amid growing competition and policy changes. This slowdown raises questions about the brand's momentum in the EV market.

샤오미, 체리, FAW가 반도체 및 원자재 비용 급증으로 전기차 가격을 인상했습니다. 이는 2025년의 공격적인 가격 인하 기조에서 크게 벗어난 행보이지만, 전문가들은 저조한 수요로 인해 다시 가격을 내릴 가능성도 있다고 경고합니다. 이달 초 시작된 이러한 가격 조정은 샤오미가 가장 최근에 동참하며 가시화되었습니다.

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The Bank of France has cut its GDP growth forecasts to 0.9% for 2026 and 0.8% for 2027 due to surging energy prices from the Middle East conflict. This adjustment is based on a main scenario of temporary hydrocarbon price increases. The bank also expects inflation at 1.7% this year.

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.

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Fuel prices in France have surged following Israeli-American strikes on Iran, reaching one-year highs. The government is closely monitoring the situation and has summoned distributors to verify price adjustments. TotalEnergies maintains a cap at 1.99 euros per liter in several stations.

 

 

 

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