Automotive: Navigating Transformation

French automotive manufacturing, employing 440,000 people, confronts perhaps the most dramatic transformation in its history. The shift to electric vehicles challenges established competencies while creating new opportunities.

The Legacy Players

Renault and Stellantis (incorporating Peugeot and Citroën) anchor French automotive manufacturing. Their evolution mirrors broader industry changes:

Renault's Reinvention: From the nationalized company producing practical "people's cars" to a global alliance partner pioneering electric vehicles, Renault's trajectory illustrates strategic adaptation. The Zoé, Europe's best-selling electric car for years, emerged from early battery investments.

Stellantis's Scale: The 2021 merger creating Stellantis recognized that global scale matters. French plants now produce vehicles for multiple brands, leveraging shared platforms and technologies.

The Electric Revolution

The Douai plant, where Renault once built internal combustion engines, now produces electric vehicles exclusively. This transformation required:

- €500 million investment in new production lines - Retraining 3,000 workers in battery and electric motor technologies - New supplier relationships for batteries and power electronics - Fundamental changes in factory layout and processes

Marie-Claire Daveu, a production line supervisor at Douai, describes the transition:

"I spent 20 years working on diesel engines. When they announced the shift to electric, I was terrified. But the company invested heavily in training. Now I supervise battery pack assembly—completely different skills but actually more interesting work."

The Supplier Ecosystem

Beyond major manufacturers, thousands of suppliers face disruption. Traditional suppliers of exhaust systems, transmissions, and engine components must pivot or perish. Some successful transformations:

- Plastic Omnium shifting from fuel tanks to hydrogen storage systems - Valeo developing advanced driver assistance systems - Faurecia moving into vehicle interiors and clean mobility - MGI Coutier adapting fluid management expertise to battery cooling

New Entrants and Opportunities

Electrification creates openings for new players:

- Battery manufacturers like ACC (Automotive Cells Company) building gigafactories - Software companies developing vehicle operating systems - Charging infrastructure manufacturers like Schneider Electric - Mobility service providers reimagining vehicle use