Virtually every major automaker is now ramping up production of electric vehicles, with plans to further expand their range to eventually phase out fossil-fuel vehicles. For thousands of automotive workers, this threatens to lead to job losses as their jobs become redundant due to the use of new technologies and manufacturing processes.
Image source: vw.com
Ford and Volkswagen estimate that EVs will require 30% less labor than fossil-fuel vehicles. In particular, in Ford already outlined reduction of 8,000 employees.
Consulting firm AlixPartners estimates that the electric motors and battery of an electric vehicle require 40% less labor than the engine and transmission for an internal combustion engine vehicle.
According to a study by the Economic Policy Institute in Washington, DC, the US might cut 75,000 auto jobs by 2030 if the share of electric vehicle sales in the domestic market rises to 50%. Currently, this figure is regarding 5%.
European auto suppliers estimate that the rapid electrification of the automotive industry might cost them 275,000 jobs by 2040, even with the addition of new jobs related to the production of parts for electric vehicles.
The transition to electric vehicles in Europe by 2030 will result in the loss of 630,000 jobs for automakers and suppliers of parts for cars with internal combustion engines, according to Boston Consulting Group estimates. At the same time, the growing demand for batteries, the development of charging infrastructure, etc. will create 580,000 new jobs.
“While the core automotive industry will certainly suffer significant job losses, some of the emerging industries that support electrification will see huge job growth.” – stated in the message of the Boston Consulting Group.
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