Arnaud Montebourg, France's Minister for Industrial Recovery, pointed out that sales of South Korean cars in France have increased on average 50 percent in January and February of 2012. Sales of city-sized hatchbacks powered by a small-displacement diesel engine were particularly strong during that time period.
Since the agreement has come into effect South Korean companies have reportedly exported 303,557 cars, six times what European companies have sent to South Korea over the same time period.
"The European Union is open to competition but we can't shoot ourselves in the foot," said Montebourg in a speech that he gave late last month.
The European Commission has yet to release a statement about the French government's request, indicating only that it has not accepted or denied it.
The companies that Montebourg's comments are aimed at are Hyundai and Kia, two usual suspects, as well as Renault. The French automaker owns Samsung Motors and some of the cars that it sells in Europe are built in South Korea. Examples include the Latitude, a slow-selling mid-size sedan that currently acts as Renault's interim flagship, and the Koleos SUV.
Kia and Hyundai were quick to issue a rebuttal to Montebourg's comments.
"Over 50 percent of Kias sold in France come from a factory that is located in the European Union," explained a spokesperson for the company. "We are a European player."
"The growth of Hyundai in Europe is based on products designed, engineered and built in Europe," said Andreas Brozat, a spokesman for Hyundai, in an interview with Automotive News. "Less than 12 percent of the 232,454 Hyundai cars registered in Europe during the first half of 2012 were built in Korea, while 70 percent came from the European region."
Renault preferred not to comment on the matter.
In France, Hyundai and Kia sales have collectively increased by 28.6 percent over the first six months of 2012. With a total of 31,350 cars sold from January to June of this year, the two South Korean companies hold a 3 percent share of the country's new car market.
"If our relatively tiny market share is enough to worry the authorities the French auto industry must be in very bad shape," said Thierry Bourretz, the marketing director for Kia France.
To put the market share figures into perspective, PSA Peugeot-Citroën has 30.6 percent of the French market and Renault holds 22.8 percent.
Photo by Ronan Glon.
