The French automotive industry has lost a third of its workforce between 2010 and 2023, a decline of nearly 139,000 jobs, according to a report published February 12, 2026, by the French National Institute of Statistics and Economic Studies (Insee).
The Insee study, conducted between September and December 2024 among 13,500 legal entities, reveals a significant contraction in employment across the entire automotive production chain – from manufacturers to equipment suppliers. Total employment fell from 425,500 in 2010 to 286,800 in 2023. This decline contrasts sharply with the relative stability of employment in the broader French industrial sector.
The losses are particularly acute among vehicle manufacturers, which reduced their French workforce by 35%, representing a decrease of 46,000 positions, falling from 131,400 to 85,400. This contraction is attributed to factors including plant closures, decreased sales, and the relocation of production facilities.
French automakers, including Renault and Stellantis, have increasingly shifted production to countries in Eastern Europe, such as Romania, Slovenia, Spain, Portugal, and Slovakia, as well as to North African nations like Morocco and Turkey. According to the Insee data, nine of the ten best-selling cars in France are French brands, but only three are manufactured within France. Even the Toyota Yaris, a Japanese model, is produced in France at a higher rate than some domestic brands.
The rising cost of labor in France, coupled with a 33% increase in new car prices over the past decade – now averaging €35,000 – has contributed to a decline in consumer purchases and a trend towards retaining older vehicles for longer periods.
Increased competition from Chinese automotive manufacturers is also impacting the French industry. The Insee report notes that France inadvertently facilitated this competition by initially establishing manufacturing facilities in China, allowing Chinese companies to advance in electric vehicle technology.
The transition to electric vehicles is exacerbating job losses within the automotive sector. Electric vehicles require approximately 40% fewer parts than traditional internal combustion engine vehicles, reducing the demand for components and impacting employment at equipment suppliers. Electric vehicles require less maintenance, negatively affecting employment in garages, and require 40% fewer workers to manufacture.
Although the repatriation of electric vehicle production to Europe is being discussed, the Insee report suggests that new manufacturing facilities are more likely to be located in Eastern European countries rather than France. A report from the French Planning Commission estimates that 13.5 million jobs across Europe are potentially threatened by the growing influence of the Chinese automotive industry.
