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Report: electrification may lead to the loss of hundreds of thousands of jobs in the automobile industry in Europe and the United States

2025-01-19 Update From: SLTechnology News&Howtos shulou NAV: SLTechnology News&Howtos > IT Information >

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Shulou(Shulou.com)11/24 Report--

Automakers from General Motors and Ford to Volkswagen to Toyota are trying to phase out fuel vehicles, Aug. 14. While electric vehicles help reduce harmful gas emissions and curb global warming, new technologies and manufacturing processes could lead to the loss of hundreds of thousands of jobs in the auto industry.

Workers who assemble fuel engines, transmissions, exhaust systems and other parts that electric cars do not need are likely to be hit first in this transition. In addition, it is much easier to produce motors and batteries than traditional powertrains, allowing carmakers to maintain the same output with fewer workers.

Both Ford and Volkswagen estimate that electric cars require 30% less labor than conventional cars. AlixPartners, a consultancy, reckons that it takes 40 per cent less labour to produce electric vehicles' motors and battery packs than to make fuel engines and transmissions. It is not entirely clear what impact this dramatic shift will have on employment in the auto industry. But many industry observers warn that the industry will lose a lot of jobs.

"the auto industry is undergoing an unprecedented transformation," said Brett Smith, technical director of the Automotive Research Center. "there are likely to be fewer workers making cars and fewer people making car parts, which will bring more challenges to the auto industry."

In a study last September, the Economic Policy Institute, a think-tank, said that if electric vehicles accounted for 50 per cent of US car sales, the US could lose 75000 auto industry jobs by 2030. Today, electric cars account for about 5% of new car sales.

European car suppliers estimate that rapid electrification could cost them 275000 jobs by 2040, adding new jobs to making electric car parts. To be sure, battery and motor production will offset job losses in the traditional auto industry to some extent, but not completely.

The shift to electric cars in Europe will lead to the loss of 630000 jobs for carmakers and auto parts suppliers of internal combustion engines by 2030, according to an analysis by the Boston Consulting Group. But strong demand for batteries, charging infrastructure, etc., will create 580000 new jobs.

"while there will certainly be a large number of job losses in the entire auto industry, some of the new industries that support electrification will experience huge job growth," the group said. " The Economic Policy Institute estimates that policy measures to stimulate electric vehicle production could help add 150000 auto industry jobs in the United States as a whole.

Nevertheless, there is no guarantee that unemployed workers will benefit from the newly created jobs. "A lot of the unemployed may not be able to get a new job," Smith said. usually, job opportunities will emerge in new places and new people will benefit. " Carmakers and their partners are planning to build a large number of battery plants in the US, but many of them will be far away from current car manufacturing centers. Smith added that battery pack production is expected to be automated.

Even white-collar workers are not immune from work. Tammy Madsen, a business professor at Santa Clara University, says people who design systems for internal combustion cars either need to be retrained to apply their skills to the next generation of electric vehicles or face unemployment. Such layoffs have begun, and Ford is said to be planning to cut about 8000 salaried employees from its internal combustion engine division.

While no one can predict exactly what will happen to the budding electric car revolution, technological change seems to be damaging carmaking and jobs, just as it will revolutionize the composition of streets and highways. "there is no doubt that there are too many people in some departments," Jim Farley, Ford chief executive, said on a recent earnings call. "our skills have fallen behind and our jobs need to change."

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