In the town of Cléon in Normandy, a planned assembly line for electric vehicle (EV) motors from Chinese firm Shanghai E-Drive, set to launch next year in partnership with Renault, has sparked debate about job security and industrial strategy in France’s automotive sector. Cléon, home to fewer than 5,000 residents and one of Renault’s longstanding factories, has seen its workforce decline from nearly 5,000 employees a decade ago to around 3,200 today, reflecting the broader challenges facing France’s industrial regions.
Renault has presented the partnership as a commitment to sustaining the factory’s operations amid a transitioning automotive landscape. However, local trade union representatives have expressed skepticism about the benefits of the new assembly line. Will Audoux, secretary of the factory’s branch of the General Confederation of Labour (CGT), noted that the highly automated production line would generate only about 27 jobs, emphasizing that the move toward automation limits employment opportunities. The factory’s CGT chief, David Bellanger, also raised concerns that the Shanghai E-Drive motors could directly compete with the factory’s existing product, the 6AK motor, which involves a more labor-intensive manufacturing process.
Bellanger explained that the 6AK motor’s production engages seven workshops and approximately 350 workers across various stages, from foundry to assembly. In contrast, the planned Chinese assembly line will focus mainly on assembly and logistics, which could lead to a net loss in jobs despite the arrival of new equipment. Renault, for its part, declined to confirm employment figures related to the assembly line and stated that the two motor models are intended to serve different customer segments.
The deal received political backing from Alma Dufour, a local member of parliament representing the left-wing La France Insoumise party. Dufour played a role in facilitating the agreement, even reaching out to the Chinese embassy to encourage cooperation. She acknowledged, however, that the current arrangement falls short of preserving industrial jobs and called for stricter “made-in-France” policies to incentivize greater local production by Chinese firms.
Dufour pointed to the limitations of France’s current EV purchase subsidy system, which evaluates vehicles based on an environmental score that factors in the carbon footprint of production and shipping. She argued that while the scoring system favors European-made vehicles, it does not sufficiently account for the origins of individual components within the motors. Dufour suggested that tougher regulations could encourage companies like Shanghai E-Drive to establish component manufacturing operations in France, citing discussions with the company’s executives during a visit to their headquarters in China. According to her, Shanghai E-Drive sees value in entering markets early to leverage tariff barriers and protectionist measures.
The Cleon case underscores the complex dynamics facing the European automotive industry as it grapples with the transition to electric vehicles, increasing automation, and global competition. As the European Union and China prepare for new trade negotiations amid concerns over job losses in the sector, experts warn that even with foreign investment and tighter policies, the industry in Europe may continue to contract as it adapts to technological and market shifts.