PSA Touts Contribution to French Economy

French automaker PSA Group claims it is bucking the country’s automotive industry trend by accelerating its contribution to France’s trade balance.

In a clear swipe at its domestic rival and government part-owned automaker Renault, PSA says its performance in 2019 rose 5%, adding €4.4 billion ($4.7 billion) to France’s trade balance. In contrast, the French automotive industry has been a negative contributor since 2008, with its performance falling farther in 2019 to a negative €15.3 billion ($16.6 billion).

In 2019, PSA Group claims to have manufactured 1,226,000 cars in France, representing 36% of its global production output.

Fifteen of the Group’s models were built in France at five assembly facilities for the domestic market, accounting for 33%, while 67% went to global export markets. In addition, it is investing in its French powertrain plants with a view to supporting the energy transition to electrification.

This investment involves the manufacture of electric motors at Tremery, electrified powertrain gear reducers at Valenciennes and, soon, transmissions for electrified powertrains at Metz. Through its partnership with Total/Saft, the automaker also has undertaken a battery-manufacturing project in France.

Carlos Tavares, PSA chairman, says: “Groupe PSA continues to have strong roots in France, and we are proud to make another positive contribution to our country’s trade balance, generating an aggregate €25 billion ($27 billion) in five years.

“The surplus is the result of our teams’ daily commitment to developing attractive vehicles and ensuring that our French plants are competitive in a challenging economic environment, while also contributing to the energy transition.”