One in Three French Car Manufacturing Jobs Was Lost in Dramatic 13-Year Decline

Why It Matters

The shrinking French auto labor pool threatens the country’s manufacturing base, erodes supplier ecosystems, and signals a competitive disadvantage in a rapidly electrifying, global market.

Key Takeaways

• French auto jobs fell 33% from 2010‑2023.
• Car manufacturers cut 46,000 jobs, driving decline.
• Suppliers lost 31.5% jobs, 92,700 positions.
• Production shifted to cheaper EU locations.
• Non‑auto industry employment stable, only 1% drop.

Pulse Analysis

The French automotive industry’s 13‑year job contraction reflects a structural shift rather than a cyclical slowdown. INSEE’s data shows a 33 % drop in direct manufacturing jobs, with carmakers such as Renault and Stellantis moving assembly lines to Romania, Slovenia, Spain, Portugal and Slovakia to capitalize on lower labor costs. This migration is compounded by fierce competition from Chinese manufacturers, which has squeezed domestic sales and forced plant closures. The result is a hollowing‑out of France’s traditional auto production capacity, leaving a legacy of under‑utilized facilities and a talent pool in transition.

The ripple effects extend deep into the supply chain. Parts makers, metallurgy firms, and chemical producers tied to vehicle manufacturing experienced job losses ranging from 29 % to 43 %, far outpacing the 1‑3 % declines seen in their non‑auto counterparts. Companies like Valeo, Forvia and Bosch are shuttering French sites, while rubber and plastics producers see a 43 % workforce reduction. These sector‑specific contractions undermine the broader industrial ecosystem, reducing demand for ancillary services and weakening France’s export potential in high‑value components.

For policymakers, the data underscores an urgent need to re‑skill the displaced workforce and attract investment in emerging mobility technologies. Europe’s green transition offers a potential lifeline if France can pivot toward electric‑vehicle battery production, software integration, and advanced materials. However, without coordinated incentives and a clear industrial strategy, the country risks further decoupling from the continent’s manufacturing renaissance, ceding market share to neighboring low‑cost hubs. The next decade will test whether France can reinvent its automotive heritage into a modern, sustainable export engine.

One in three French car manufacturing jobs was lost in dramatic 13-year decline

By Quirino Mealha · Published 13 February 2026 · 18:01 GMT+1 (updated 18:38)

According to a report released Thursday by the French National Institute of Statistics and Economic Studies (INSEE), the workforce in the country's automotive industry diminished by a third between 2010 and 2023. This includes manufacturers, equipment makers and other suppliers, with the bulk of the disruption being caused by car manufacturers who cut 46,000 jobs during the 13‑year period observed in the study.

Falling sales due to Chinese competition, among other factors, exacerbated the issue and led to consequent factory closures and relocations. Renault and Stellantis – which includes over a dozen car brands such as Citroën, Fiat and Peugeot – set up operations in other parts of Europe where labour is cheaper, such as Romania, Slovenia, Spain, Portugal and Slovakia.

The research conducted by INSEE was the first to identify all types of industrial production related to the French automotive sector and depicts a bleak scenario. The data becomes far worse when contrasted with the numbers from the non‑automotive industry, where the workforce remained stable with only a 1 % decrease.

FILE. Car brand logos are seen on the façade of the Stellantis headquarters near Amsterdam, January 2021 – AP Photo/Peter Dejong

Dire future for the French automotive industry

The contraction and consequent relocation of the French car‑manufacturing business has negatively affected several associated industries in the country and, since 2023, the trend has only accelerated.

Parts suppliers in France were even more impacted by the relocation of the car manufacturers, with equipment and component makers reducing their workforce in the country by 31.5 %, representing a loss of 92,700 full‑time jobs. Additionally, Michelin, Valeo, Forvia, Bosch, Lisi and Dumarey are all in the process of closing sites in France.

Manufacturers of rubber and plastics for the automotive industry have lost 43 % of their workforce, while those outside the automotive sector only saw a 3 % decline.

The same disparity can be observed in the metallurgy sector, where a 42 % decrease in jobs was noted for car‑related production but, again, only a 3 % decline in employment for other parts of the same sector.

For metal products there is a 27 % fall in the automotive‑based sector but jobs are virtually stable in other areas.

Even more striking, in chemicals there is a 29 % decline in employment for automotives but a 19 % increase in jobs servicing other businesses.

Ultimately, these clear‑cut disparities underscore a deepening structural crisis, illustrating how the French automotive sector is rapidly decoupling from the stability of the broader industrial landscape, with no signs of recovery and many indicators of aggravation.