Briefly
According to the National Institute of Statistics and Economic Studies of France (INSEE), employment in the country's automotive sector fell from 425,500 in 2010 to 286,800 in 2023 — a loss of almost 139,000 jobs, or about 33%. This covers both car manufacturers and suppliers of equipment and components.
Details that matter
The biggest cuts hit the automakers themselves: their employment fell from 131,400 to 85,400, a drop of 35% (roughly 46,000 jobs). Suppliers — makers of equipment, bodies and components — lost about 92,700 employees (from 294,100 to 201,400, or 31.5%).
"Suppliers hardly relocated production, but exported to the countries where French manufacturers' plants are located"
— INSEE
Reasons: pressure from competition with China, falling sales, and relocation of production by parent groups (Renault, Stellantis, etc.) to countries with lower labor costs — Romania, Slovenia, Spain, Portugal, Slovakia. Since 2023 the trend has accelerated: Michelin, Valeo, Forvia, Bosch, Lisi and Dumarey have closed some capacities in France.
Context and implications for Europe
This is not just unemployment statistics. Job cuts mean losing production chains, competencies and reserve capacity that previously allowed rapid scaling up of output. INSEE calls this the first study to cover all parts of the automotive industrial ecosystem — and the picture is unequivocally worrying.
In October 2025 the EU identified about «eight» "excess" car plants across the continent — a surplus of capacity that requires a solution. Former NATO secretary general Anders Fogh Rasmussen directly advised Europe to consider repurposing these facilities for the production of military equipment.
"Europe should rethink the structure of production: redundant car plants could become a critical industrial base for producing defense equipment and materiel"
— Anders Fogh Rasmussen, former NATO secretary general
What this means for Ukraine
For Ukraine, such a transformation in Europe is not only an economic issue but a security one. Redirecting idle European capacity to the production of military equipment, electronics or logistical gear could bolster material and technical support for the front and help diversify supply chains. At the same time, the loss of industrial competencies in Western Europe complicates long-term stability of civilian and defense supply chains.
Conclusion
The French example is a symptom of a broader trend: global competition and supply-chain optimization are degrading regional industrial ecosystems. For Europe this is a challenge but also an opportunity: rather than allowing industrial spaces to collapse, strategies should combine social responsibility (support for jobs) with strategic reorientation (production important for security). For Ukraine this is a signal to keep communication channels with European manufacturers open and to push for a shift from short-term contracts to long-term industrial partnerships.
