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Vichy France was a country established at the end of the French surrender and it lasted until November 1942. It was an independent state in Europe and helped Germany somewhat during the war. It has average manpower and can, in the right hands, be turned into a grand nation. However, unlike what many people think, it is not a German puppet when it is established despite the Germans creating Vichy France themselves. As Vichy France you will be in control of southern France and a big western chunk of Africa.
In the hands of the AI, Vichy France will heavily align to the Allies, because it is extremely going away from the Axis for the reason "Axis members control Vichy France cores" so it automatically joins the Allies within a few months, sometimes a few weeks even. It gets steamrolled in Southern France and knowing what the French do, they surrender however most of the time they will continue the fight rather than give up. Germany never bothers to take back Vichy France Africa. This is a major issue as Germany, as while creating Vichy France frees up a bit of your forces, it will revolt anyways. It's always good to keep a few divisions at hand near Vichy France, as it initially has an HQ brigade in Vichy and 2 infantry divisions, and even they are unlikely to be mobilized, because as surprising as it seems, Vichy France starts off with no wars if you started from a historical bookmark before the creation of Vichy France in real life.
Vichy France can have the Syrian region too (Syria & Lebanon) only if the player decide to play with this Country once the event "Fall of France" has been activated. If the player start directly choosing another year (Barbarrosa for example) Vichy only will have all North-Africa. Because Indochina was given to Japan and, Syria-Lebanon stay on France Hands.