The Automotive Industry in France: The Internationalisation of Group Manufacturing is Impacting the Balance of Trade

Not only vehicles, but also bodyworks and equipments: the French automotive manufacturing sector is now the fifth largest in the European Union. It is losing momentum, especially since the crisis.

418 groups belong to the automotive sector and account for nine tenths of the production of the sector. In relation to other manufacturing sectors, the commercial aspect is more developed within these groups, especially the multinationals.

The French balance of trade is in deficit in respect of automotive products due to imports from foreign, mainly German, manufacturers. Though French multinational groups are still contributing positively to the balance of trade, they have located the majority of their manufacturing operations outside France to serve the local markets and to be re-exported to France.