The French automotive industry has shed a third of its workforce between 2010 and 2023, losing nearly 139,000 jobs, according to a new report released Thursday by the French National Institute of Statistics and Economic Studies (Insee). Employment in the sector fell from 425,500 to 286,800 during that period, a decline significantly steeper than the near-stability experienced by the broader manufacturing industry, which saw a decrease of just 1%.
The losses were widespread, impacting both automakers and their suppliers. Automakers themselves reduced their French workforce by 35%, from 131,400 to 85,400, representing a loss of 46,000 positions. Suppliers, including equipment manufacturers and component producers, experienced a 31.5% reduction, equating to 92,700 fewer jobs. This decline occurred through a combination of factory closures and shifts in production.
The trend has accelerated since 2023, with major companies like Michelin, Valeo, Forvia, Bosch, Lisi, and Dumarey announcing site closures in France. The impact of the automotive sector’s struggles is particularly acute for related industries. Producers of rubber and plastics for the automotive industry lost 43% of their workforce, even as those serving other sectors saw a decline of only 3%. Similar disparities were observed in metallurgy (-42% versus -3%), metal products (-27% versus near stability), and the chemical industry (-29% versus +19%).
The Insee report highlights a pattern of automakers, including Renault and Stellantis, shifting production to countries in Europe – Romania, Slovenia, Spain, Portugal, and Slovakia – as well as to Morocco and Turkey. While suppliers initially resisted widespread relocation, they increasingly exported to countries hosting the relocated manufacturing facilities. Although, the report notes that this trend of increased exports to those countries has not accelerated since 2010.
Despite the overall decline, the report indicates a growing involvement of suppliers in the electric vehicle (EV) supply chain, with three-quarters already participating in the EV value chain as of 2023. Employment among battery producers increased significantly between 2020 and 2023, adding 1,000 full-time equivalent positions, although this remains a modest figure relative to the overall size of the industry.
The Insee study is the first to comprehensively identify all industrial production linked to the automotive sector in France, providing a detailed overview of the employment landscape and the challenges facing the industry. The report does not offer projections for future employment trends, but the ongoing closures and shifts in production suggest continued pressure on the French automotive workforce.
