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Cost of French cars reaches record high

Sophie Inge · 22 Mar 2013, 15:14

Published: 22 Mar 2013 15:14 GMT+01:00

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According to the survey carried out by the website L’Argus, the French spent on average €22,486 on cars that are ‘bigger, heavier, faster, more powerful and more expensive’ between 2010 and 2012.

In 2012 the price of cars in France increased by 5.8 percent (around €1,305) compared with the previous year, 12 percent more than in 2010.

This increase in spending – claims L’Argus – can be explained by the fact that cars have increased in size by about two centimetres.

French daily Le Figaro attributes this increase in size to the scrapping of the “prime à la casse” scheme at the end of 2011, a benefit scheme which rewarded people for getting rid of their old vehicles in favour of smaller eco-friendly ones.

However, the news is unexpected, considering the disastrous state of the French car industry. 

Last year, PSA Peugeot Citroen, the biggest French car maker and Europe's second-biggest after Volkswagen shocked France when it announced around 11,000 job cuts and plans to shut a plant near Paris.

Story continues below…

In February the manufacturer reported €5 billion losses in 2012 and this week the company announced it had approved a compensation package with union members representing 76 percent of the employees voting in favour.

The job cuts and compensation package should receive final approval in the second half of April this year.he second half of April.

Sophie Inge (sophie.inge@thelocal.com)

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