Huge national debt to car distributors: a very critical situation and the executive is not listening!

The end of state subsidies to car distributors puts them in a very delicate situation. The French state owes them at least 320 million euros, including 160 million euros for social leasing. And the worst is yet to come…

Consultants are not paymasters, the saying goes. A truth that takes on its full meaning with regard to the termination of bonus payouts and social leasing from the French state to car distributors. Weakened by this lack of money, “duped” distributors, whose need for working capital is vital, step up to the plate: “If we don’t have a commitment to leave quickly, things will fall apart (…) We have to ask our bankers for cash lines, which cost us between 5% and 6% for short-term lines,” Marc Bruschet, president of the Mobilians concessionaire, worries about this matter.

another 500 million

It must be said that this executive debt has grown to alarming proportions since the shutdown of the social leasing file recording platform last February, our colleagues at report. So to date these are 320 million euros, including 160 million euros for social leasing (the rest is payable as an advance on the CO2 bonus) expected by car distributors ! And it’s not over, because deliveries from today until next September for social leasing orders in France represent… Another 500 million.

The state needs to get its act together

“According to our latest estimate, the state’s debt to car distributors amounts to more than 320 million euros in bonuses and electricity leasing. This unacceptable situation has an unprecedented gravity for companies that only bear the risk of public policies associated with the ecological transition,” he even wrote yesterday in a post on LinkedIn Xavier Horent, general delegate Mobilians which calls on the state to “immediately come together by accepting its responsibilities, in accordance with the Strategic Sector Treaty signed on 6“.

I have been a digital automotive journalist for many years and also have a strong appetite for motorsport.

Posted on 05/22/2024 at 4:00 p.m

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