Public Finance Support (State Aid) Granted to the Automotive Sector

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On 26 May 2020, the French government announced an €8 billion package to rescue the automotive industry and boost electric vehicles. The plan includes the following measures:

..A car scrappage scheme: The scheme includes €1 billion to increase the current State bonus for consumers buying electric cars up to €7,000 (currently at €6,000). Business customers are entitled to a €5,000 subsidy and an additional bonus of €2,000 for the purchase of plug-in hybrids. Eligible vehicles shall no cost more than €50,000 and be able to travel on battery power at least 50 kilometers. The electric bonus will be available from 1 June to 31 December 2020.

..Trade-in premium: Consumers who buy new or used latest-generation petrol or diesel vehicles and full-electric models will be entitled to a €3,000 and €5,000 bonus, respectively. Subsidies will be available from 1 June and will apply to the first 200,000 applicants..

..A €5 billion loan for the French carmaker Renault: Press reports the State

loan is contingent on the car manufacturer keeping two key plants in France.

Please see full publication below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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