Chinese EV motors arrive in France, but jobs remain in short supply

In the French town of Cleon, located far from Paris and home to a Renault factory, the future of local jobs hangs in the balance. The factory’s workforce has dwindled from nearly 5,000 in 2013 to 3,124 in 2021, as economic activity and employment in the area continue to decline. However, the arrival of an EV motor assembly line from Chinese firm Shanghai E-Drive, in collaboration with Renault, has brought mixed reactions from the community.

Renault sees the partnership as a testament to their dedication to the struggling factory, while some workers worry that the assembly line will only create a handful of jobs and potentially compete with their existing products, leading to further unemployment. Local politician Alma Dufour, who played a role in securing the deal, has called for stricter made-in-France policies to encourage Chinese firms to produce more in France and save jobs.

The EU and China are set to discuss their trade imbalances, with the loss of European automotive sector jobs a significant concern in Brussels. Analysts warn that the automotive industry, even with Chinese investment, is bound to shrink. The Cleon plant exemplifies the challenges of creating employment in an industry that analysts say is destined to decline, despite Chinese involvement.

Workers at the plant are concerned that the highly automated assembly line, which will have limited human involvement, will further diminish the need for labor. They also fear that the new Chinese motors may directly compete with the factory's existing 6AK model, resulting in the loss of more jobs. According to David Bellanger, chief of the factory’s CGT branch, the new line may cost more jobs at the plant than it creates.

Renault declined to disclose the exact number of jobs the assembly line would bring, stating that the two models cater to different customer needs. Local MP Alma Dufour, who helped establish the partnership, highlighted the need for more stringent protectionist measures to incentivize Chinese firms to produce more in France. She argued that France's current system for determining subsidies for EV purchases does not adequately account for the components of the motor, giving Chinese competitors an advantage.

France's current system calculates the environmental score of each EV model, favoring those made in Europe due to the carbon footprint of their production and shipping. Despite potential tougher made-in-Europe policies, experts warn that the continent's automotive industry will likely shrink as the EV revolution reshapes the supply chain, reducing the need for parts and people.