The current economic climate in France is characterized as a deep, structural crisis, impacting various sectors including retail, automotive, construction, real estate, and technology.

The automotive sector is particularly hard hit, grappling with declining sales, a shift towards electric vehicles, and rising energy costs that put them at a disadvantage against Chinese competitors.

Adding to the strain, European regulations on CO2 emissions are set to tighten in 2025, further burdening car manufacturers who are also managing the repayment of state-backed loans from the COVID-19 pandemic.

Recent announcements of layoffs at major companies like Auchan, which is cutting 2,500 jobs, and Michelin, which is shedding 1,250 positions, underscore the deteriorating job market.

In fact, Michelin is not only laying off workers but also closing factories, with recent shutdowns in Vannes and Cholet, illustrating that even established firms are feeling the economic pinch.

Valeo is actively seeking buyers for three of its sites in France, which could impact 1,120 jobs, while Forvia has announced plans to cut 10,000 positions across Europe over the next five years.

The Belgian group Dumarey is also facing challenges, recently cutting 248 jobs at its Strasbourg facility that produces gearboxes for the German supplier ZF.

Smaller suppliers are not exempt from these difficulties; companies like Walor and Anderton Castings are experiencing severe financial issues, with the latter facing liquidation.

Since the beginning of 2024, there have been 52,214 collective proceedings opened for struggling businesses in France, marking a significant increase compared to the previous year.