Industry Trend Analysis - Macron Majority Positive For Autos Competitiveness - AUG 2017


BMI View: The likelihood of an REM majority in the French legislative elections would be positive for the competitiveness of the autos manufacturing industry. By being able to pursue Macron ' s reforms for corporation tax and labour laws, some of the biggest issues that have been deterring investors will be addressed.

French President Emmanuel Macron's La Republique En Marche (REM) party looks set to achieve a majority in the country's legislative elections on June 11 and 18, which will give Macron the mandate to push through reforms that we believe will bring much needed improvements to the competitiveness of the country's automotive industry ( see ' Legislative Elections: Macron ' s Party Poised To Win Majority ' , June 7). Alongside the corporate tax cuts that were a central component of Macron's presidential election campaign, the increased likelihood of pushing through labour reform with a majority in the National Assembly would strengthen our view of increased competitiveness in vehicle production.

Tax Cuts A Basis For Better Margins

Tax Cuts Alleviating Labour Costs And Inefficiency
EU Automotive Producers - Costs & Value-Added Per Employee, EUR
*Hungary, Poland, Czech Republic, Slovakia and Slovenia. Source: CCFA, BMI

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