On June 2, the South Korean media "Wealth Korea" published an article stating that the French automotive industry with over 120 years of history is currently in trouble. In 2019, the sales volume of French cars was 2.21 million units, but during the pandemic, this number dropped by 25%, and it has not recovered since then. By 2024, it will only reach 1.72 million units. However, ironically, the profits of car manufacturers have reached record highs. The key factor is the "increase in car prices". From 2014 to 2024, the average price of new cars will increase by 34%, rising from 24,448 euros to 36,712 euros. It has increased by nearly 12,000 euros, far exceeding the growth rate of living costs (15%) during the same period. After the pandemic, supply shortages and surging demand allowed manufacturers to charge higher prices. Consumers were prepared to spend more, while manufacturers focused on selling large, high-profit vehicles, achieving record-breaking performance from 2021 to early 2024. However, as of 2024, the sales of Renault, Citroën, and Peugeot have stagnated. Notably, only Dacia, a low-cost brand under Renault, performed relatively well, while Citroën's sales in 2024 were only one-third of what they were in 2011. If sales decline, production will inevitably decrease. Since 2023, the number of factory closures and bankruptcies across France has been increasing, with 80 factories and 9,000 jobs at risk nationwide. For example, Michelin announced the closure of two tire factories and layoffs of 1,200 people. It is particularly worth noting that this impact primarily affected subcontractors rather than car manufacturers. There are three structural factors making the recovery of the French automotive industry even more difficult. These are the transition to electric vehicles, overseas production shifts, and competition from China. Firstly, the transition to electric vehicles will not happen overnight. Currently, electric vehicles account for only 15% of vehicles on French roads, and progress in charging infrastructure construction is slow. The EU's relatively lenient regulations on automobile carbon emissions may also dampen the popularity of electric vehicles. Among these, the French government reduced the subsidy for purchasing electric vehicles from 7,000 euros to 4,000 euros. The EU announced that starting from 2035, the sale of internal combustion engine vehicles will be banned. The proportion of diesel vehicles among new cars has decreased from 80% in 2011 to around 10% in 2024. The decline in demand for diesel parts has impacted foundries supplying these parts. Some analysts claim that the era of electric vehicles may create job opportunities, but it could also threaten 40,000 jobs. Shifting production overseas is another long-standing issue. Since the 1990s, France's production share has continued to decline. Renault and Stellantis have reduced their production shares in France from 23% in 2019 to 18% in 2023. China is the world's largest automobile producer, with annual production expected to reach 30.2 million vehicles in 2023. France's automobile production is only 1.5 million. Additionally, Chinese electric vehicles are inexpensive, with excellent quality. They are rapidly expanding their market share. Low energy costs and a world-class battery industry enable Chinese manufacturers like BYD to fully enter the European market. For instance, Renault's electric vehicle Twingo is produced in Slovenia using Chinese components, with a production cost lower than that in Europe. Combined with U.S. tariff policies, the French automotive industry is in dire straits. Last year, European Commission Vice President Stéphane Séjourné stated: "The French automotive industry has been sentenced to death. The U.S. leads in autonomous driving, China in electric vehicles, South Korea in batteries, and Chile in lithium battery minerals. If Europe does not want to become a mere assembly plant, it must differentiate itself through its own technology." Disclaimer: This article solely represents the author's viewpoint.