A new survey shows that the rapid transition from fossil cars to electric cars, can have a negative impact on the jobs in the automotive industry. The focus on reaching zero emissions can therefore lead to serious structural problems.
In connection with the EU presenting new goals for CO2 emissions after 2020, the European Commission has published a business review report that reviews how the transition to electric cars will affect employment among car companies. It certainly recognizes that the production of electric vehicles is less labor-intensive, but according to some experts, the Commission has underestimated how big the impact on employment will be.
According to a new report from FTI Consulting, the transition can lead to serious consequences for the entire automotive industry. Europe’s car dealerships will produce 38 percent fewer parts and components for electric cars. This can be compared with a loss of 17 percent for the car companies.
The batteries will account for 35-50 percent of the total cost of an electric car in the future, and it is still uncertain whether these batteries will be produced within the EU or if they will be imported. In recent times, the value of the car companies is significantly lowered, which will have a significant impact on the jobs.
Car manufacturers are keen to move as fast as they can against zero-emission vehicles. But the entire European car supply chain must be transformed at a manageable rate. It must protect employment and long-term sustainability for the sector. This report shows that excessive CO2 goals and unrealistic sales quotas for battery-powered vehicles can lead to serious structural problems throughout the EU, ACEA’s Secretary General, Erik Jonnaert says.
Today, the automotive industry accounts for 11 percent of total employment in the EU. In countries such as the Czech Republic, Germany, Italy and Slovakia, the figure is above 20 percent. A rapid transition to electric cars will therefore be hard against these countries.
The European Parliament’s Environment Committee will vote for CO2 targets after 2020 at the beginning of October.