The automotive sector has seen an increase in its business population of 8. 2% compared to 2020, representing 193,747 establishments (head offices and secondary establishments). In terms of insolvencies, the sector recorded 1,313 business failures as of September 30, 2021, over a rolling 12-month period, which represents a 15.6% decrease compared to the same period last year. In addition, these same insolvencies threatened more than 1,882 jobs.
Automobile, still one of the engines of the French economy
The automotive industry, which includes manufacturing, sales, maintenance, parts trading and rental, represents nearly 167,200 companies in France. Even if the sector is undergoing industrial restructuring affecting construction (site closures, redundancy plans and relocations), it remains a heavyweight in the national economy, ranking among the top five economic activities, with 1.6% of companies in metropolitan France, 2.3% of jobs and 7.7% of cumulative sales.
In terms of the number of companies, the automotive sector is dominated by the trade, maintenance and repair of cars (light motor vehicles), which represent 79% of companies, 41.4% of the workforce and 44.7% of sales. Car and automotive equipment manufacturers represent only 1.5% of companies, but still 37.5% of the workforce and 38.2% of the sector's cumulative turnover. Today, the automotive industry in France is facing the challenges and costs of the "second automotive revolution" with the scheduled end of fossil fuels and the transition to electric, fuel cell and other technologies.
"The current crisis is exceptional: it's the first time that sales have plunged while GDP is growing."
- Marc Bruschet, member of the National Council of Automotive Professions
Towards a rise in insolvencies in 2021
In 2020, 1,298 openings of receivership or direct judicial liquidation had been noted. Over the last 12 months to the end of September 2021, 1,314 procedures have been opened at the registries. Private car dealers and garages are still paying the highest price: 80% of the procedures opened and 68% of the workforce threatened by these procedures.
But the truck and industrial vehicle sector is also suffering collaterally from the difficulties affecting the road transport and construction industries. Downstream, body and trailer manufacturers have already been heavily impacted by a 9% increase in insolvencies over the year. Upstream, the situation is also deteriorating for specialist garages (maintenance and repair of other motor vehicles), with a 10.5% increase in the number of insolvencies, as well as for truck rental companies (up 60%).
The number of insolvencies in this sector fell by only 8.7% over the year. Finally, the year 2021 should end with a limited increase in the number of insolvencies compared to 2020, but still well below the 2,090 procedures recorded in 2019.
