Final EDIT (11 pm): WOW the thread is downvoted and a thread was created just to collectively complain about OP. I thought french people were the ones always complaining and doing strikes over nothing :) You are fucking ridiculous. I can't believe I spent time on this comment, when you were complaining just for the sake of it and not looking for constructive and informative comments.

Since people are asking for a live update summary of events, I'll try to do it (But we already have a pretty good reddit live thread I think); (I'm french and will be using what is said in the french media); (Please correct my english if necessary (via PM?) and I'll edit accordingly).

5PM: Seems like people didn't really need an live update comment in the end: only one upvote. (All the criticism against OP were not necessary :) I won't be updating this comment before a while. I may come back later.

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4.45 edit: François Hollande gave a speech after the end of his defense meeting.

He talked about the attack in Tunisia (said there is no link between the two events, no coordination), and announced a 3-days high level alert of the vigipirate plan in the Isère region: to make sure every sensitive places are even more protected. The vigipirate plan is on a high level nationally since January.

4:20pm edit: The decapitated victim was the suspect's employer.

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Summary of the main facts we know at this hour:

This morning at 9.50, a loud explosion was heard several kilometers around the perimeter of the "Air Products" factory (which bottles gas products) in Saint-Quentin-Fallavier, Isère, near Lyon.

The terrorist assasinated someone - who could have been carried along with him in the car - and beheaded him, before putting the head on the fence of the facility. The head was covered in writings, and one or two black "flag(s)" were risen nearby.

The victim is manager of a nearby good transport society (edit: he was the suspect's employer). He may have been on the site of the factory for a delivery. The car used by the terrorist may have been stolen to the victim, it had athorization to enter the site.

The terrorist did a "rodeo" in the factory car-park, before launching his car at high speed into a rack filled with gas bottles, which created the explosion that injured 2 factory workers. He then tried to open gas bottles to spark a much larger explosion, but was stopped by a voluntary fireman who arrived quickly on the site, and who was lightly injured during the fight.

The suspect was then arrested. He refused to talk at first but then revealed his identity and allegedly claimed he is a member of ISIS.

His name is Yassin(e) Salhi [(e) in parenthesis because there have been different spellings in the medias]. He's a 35 year-old married french man of Moroccan origin, with 3 children, who lives in Saint-Priest, not far from the scene of the attack (20 kms). He didn't have any criminal record but was known by the french intelligence services : he had a "Fiche S" in 2006 because of his profile of religious radicalism (he was close to salafist group(s)). But, in 2008, after 2 years of close surveillance by the DGSE, his "fiche S" was not renewed because no evidence showed any link to terrorism. (Now the media also report on several notes of the DGSE in 2013 and 2014: his profile was again studied because of signs of radicalization, but again nothing substancial was found during the investigations).

The suspect's wife has been arrested at her home and is currently being interrogated. Another person is being interrogated (identity not revealed). Other relatives are being investigated.

We do not know at this hour whether the suspect received any logistic support from accomplices, or if other planned attacks exist.

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Other facts:

François Hollande is currently in a defense meeting at the Elysée in Paris [edit: finished now], organizing the coordination with the main ministers and surveillance services (after leaving the Euro group meeting in Brussels). Prime Minister Manuel Valls who is currently in Colombia announced that he's coming back to France. They both gave short speeches quiclky, along with Bernard Cazeneuve, French interior minister, who is on the site, following the investigations.

The black and white "flags" and writings found on the scene are being translated and analysed. edit: the "flags" were not "official" ISIS flags, but pieces of black cloth with added white inscriptions on it.

The "Fiche S" means "Fiche de sureté": for individuals presenting signs of possible dangerosity. (This means they are being actively watched. There are different levels of dangerosity, usually this type of classification means that a team of about 20 to 50 people are devoted to watching the suspect individual. But it's obvioulsy sadly not efficient enough).

The "Air Products" factory is situated in an industrial area classified as "Seveso",ie: sites containing large quantities of dangerous substances.

4.40pm edit: media reported earlier that the suspect didn't go abroad (on suspicious trips in the middle east for instance). But now they say that he actually may have taken several trips abroad.

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Today there were also two other attacks : one in Sousse, Tunisia (at least 27 deaths) and one in Koweit (at least 24 deaths).