PARIS - May 30 - Roundup: French automobile brand was "overseas manufacturers" trend

With the rapid increase of labor costs, the euro-dollar exchange rate soared, the two French car brand in the proportion of indigenous production of motor vehicles rapid decline. To save costs and make products closer to new markets, Renault and Peugeot Citroen Group of the Group to speed up the transfer of production to overseas missions speed.
 
Related data revealed that Renault and Peugeot Citroen Group Group vehicle rapid decline of domestic production. First quarter of this year, Renault Group of the local community than the number of cars assembled the same period last year dropped by 16.6 percent, while the number of overseas auto assembly and increased by 27 percent. Since 2004-2007, Renault decrease in the number of local automobile assembly 27 percent, Peugeot Citroen Automobile assembly of the local community to reduce 24 per cent.

Throughout Western Europe, France also the number of cars assembled a rapid decline. The Renault Group as an example, the 2004 Renault car assembly in the region against the total number of assembly of 50 percent, compared to last year, a sharp drop to 34 percent.

French domestic car assembly rapid decline of a number of factors. First of all, France is a high-tax, high welfare of the state, enterprises, human labor costs in recent years been on the rise. Coupled with the euro-dollar exchange rate rose rapidly, while the United States, Japan and some emerging markets on the car sales in U.S. dollars accounting, human expenditures in the proportion of the cost of production rising, sales of motor vehicles getting smaller and smaller profit margins.

Secondly, the Western European car market has basically at the saturation point, the French car in France and the Western European market share basic fixed. Automobile market for new growth points are emerging markets, including Eastern Europe, Asia, South America and Russia, and other places. Local factories can not only reduce the appreciation of the euro exchange rate losses, the use of local cheap labor and products closer to the market so as to reduce costs.

There are also a factor in the local community so that the French car manufacturer ratio declined. With the EU environmental requirements and the promotion of new technologies, old cars have no market. France, the number of factories producing many of the old car, with the old car out of these factories have less and less production tasks.

French carmaker transferred abroad has become a reality, but also likely to accelerate. France are the two major car Peugeot Citroen and Renault in emerging markets with many factories. Renault Twingo in Slovenia assembly, Peugeot 107 and Citroen C1 in the Czech production. Two groups also announced recently in Russia, Turkey, India and Brazil and other countries set up factories.