French market opens up to automotive component industry

Big opportunities for stronger trade ties ED RICHARDSON NEW EXPORT markets for automotive components are opening up as French automobile manufacturers follow Germany’s lead in sourcing high quality components at competitive prices, says Clive Williams, executive director of the National Association of Automobile Component Manufacturers (NAACAM). “We believe that there are major opportunities to develop stronger trade with France as we compete with manufacturers in South America, Eastern Europe and the Far East,” he says. Looking to the future, the economic context/policies that are most likely to affect the growth of the relationship with France are the SACU (Southern African Customs Union)/EU preferential trade agreement (PTA), as well as the fact that Renault has shown that there is interest, both from the French side and from the local consumer, in developing greater sales. “Peugeot and Citroen should be getting a loud and clear message that this is an available market!” says Williams. “With the PTA coming into effect, we could well see increased trade in vehicles as well as component exports to France. It is however unlikely that we will see the French manufacturers wanting to set up assembly facilities for cars at current volumes," he says.