Massive job loss vs big mobility revolution? Risky drive on thread of change
- The global surge of electric vehicles may be good news for the planet but is it really good for the job market at production facilities?
The world is marching towards zero-emission mobility and the number of options is ever-increasing when it comes to cars, bikes and even buses and trucks. A vehicle with an internal combustion engine, although still far, far more common, is gradually moving towards its extinction. It may take a few years in some countries, or a few decades elsewhere. But the advent of new-technology vehicles are also having some indirect ramifications like potential job cuts in production facilities.
Fewer parts in electric vehicles (EVs) and the increasing dependence on automation are two big factors that are posing a big threat to jobs at manufacturing facilities, especially those in the European Union. In fact, EU recently pushed back a crucial vote on banning cars with internal combustion engines owing to concerns raised by Germany. The country has pointed out questions about how such a ban would affect the auto industry at large and on the use of e-fuels in vehicles post 2035.
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But there is a growing concern about job cuts as well. In February, Ford announced it is slashing around 3,800 jobs in Europe as it looks to strengthen its EV portfolio. The maximum hit would be on employees in Germany and the UK. Overall, many point to rising manufacturing costs of an EV and inflationary pressures in the US and Europe as key factors why manufacturers are looking to have a firmer grip on purses. With EV leader Tesla offering price cuts on many of its models, the competition has become even more stiff.
The future may be all about EVs with companies like Ford, GM, Nissan, Hyundai, Honda and Mercedes - among others - announcing respective intentions to stop selling cars with conventional engines by 2040. But while this may be good news in the battle for curbing greenhouse gas emissions, its impact on the job scenario may be less than ideal.
