3rd UPDATE: France Gov't Rolls Out Electric-Vehicle Plan
October 01 2009 - 1:20PM
Dow Jones News
The French government Thursday rolled out a broad plan of state
funding to kick-start demand for electric cars locally and to put
France in the forefront of zero-emission vehicle technology.
The cornerstone of the plan is a budget of EUR1.5 billion in
public funding to create one million recharging points for electric
vehicles nationwide by 2015. Automotive industry analysts agree
that demand for the new technology can never take off if
governments don't provide support for the power-supply
infrastructure for battery-powered vehicles.
The plan was drafted in collaboration with French automotive
sector companies, local authorities, state and private vehicle
fleet operators and power and infrastructure companies.
"No one can take the risk (of investing in zero-emission
technology) alone. But if everyone takes the risk at the same time,
it will work," Jean-Louis Borloo, minister for ecology, energy,
sustainable development and the sea, told a reporters.
The government reckons that clean-vehicle technology will
generate EUR15 billion of business activity between now and 2030.
At the same time, it will reduce France's energy imports by 4
million tons of oil equivalent by 2020, while cutting carbon
dioxide emissions by 17.5 million tons.
By 2025, Borloo's office said, zero-emission vehicles could
represent a market of between EUR50 billion and EUR90 billion, and
represent 27% of overall vehicle sales.
The government's aim is to set in motion a strategy that will
lead to the production of two million vehicles using battery power
for propulsion, either fully or partially, by 2020.
The government will legislate to oblige the inclusion of battery
recharging points in the parking lots of new apartment blocks and
office buildings, starting in 2012. Borloo said there would be tax
breaks to encourage the installation of charging points in existing
buildings.
Another key measure will be the establishment of a battery
manufacturing factory at a plant owned by Renault SA (RNO.FR) at
Flins, west of Paris, at a cost of EUR625 million and in
cooperation with France's Atomic Energy Commission. France's
Strategic Investment Fund will put up EUR125 million of the overall
amount.
Borloo said the battery plant would be able to produce more than
100,000 batteries a year, and Industry Minister Christian Estrosi
said the idea is that other French manufacturers of electric
vehicles, including PSA Peugeot-Citroen (UG.FR), will source their
batteries there.
However, Gregoire Olivier, Peugeot-Citroen's head of strategy
and programs, said that's not a given, noting that the four
electric vehicles that his company plans to launch into the market
toward the end of 2010 will have batteries made in Japan by either
GS Yuasa Corp. (6674.TO) or supplied by Switzerland's MES DEA
SA.
"Renault is proposing that we buy their batteries, but we're
very open about this. For our requirements, we'll go for the best
value for money, and we'll put them in competition with other
suppliers," Olivier said.
Meanwhile, a group of public and private fleet operators has
already identified a need to purchase 50,000 electric vehicles
through 2015. Borloo said the government reckons that by pooling
purchasing there is potential to reach a fleet of 100,000 vehicles
by that date.
Renault and alliance partner Nissan Motor Co. (7201.TO) have
said they plan to invest a total of EUR4 billion in developing
electric vehicle technology.
-By David Pearson, Dow Jones Newswires; +33 1 4017 1740;
david.pearson@dowjones.com