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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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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