The cost of accelerating too much with the electric car: 500,000 jobs in the auxiliary industry

Forcing the road to complete decarbonization by 2050 using only 100% electric vehicle, will make it miss up to half a million jobs only in the value chain of th

The cost of accelerating too much with the electric car: 500,000 jobs in the auxiliary industry

Forcing the road to complete decarbonization by 2050 using only 100% electric vehicle, will make it miss up to half a million jobs only in the value chain of the auxiliary industry. This is revealed by a study by PWC Strategy made by CLEPA, the European employer of automotive suppliers.

The research is based on a fact supported by all: the fundamental role of electrification to achieve the objectives of the Paris Agreement, but corroborates the risks to employment related to the propulsion system if, instead of by a transition, it is committed to a transition, Disruption in the industry.

In this sense, remember that the manufacture of vehicles is more than 5% of manufacturing employment in 13 EU Member States, and six out of 10 workers correspond to suppliers. Thus, the work allows to detect risks and opportunities in seven of the main countries (Germany, Spain, France, Italy, Czech Republic, Poland and Romania) and is also the first to evaluate the impact of the different political paths that can be taken.

Specifically, three scenarios are raised: a mixed technology approach, the current approach to electric vehicles (EV) proposed in the 'Fit For 55' package and a scenario of radical increase in EV. The three hypotheses assume an accelerated electrification to meet environmental objectives, with a high market share for electric vehicles for 2030 of more than 50%, almost 80% and about 100%, respectively.

If the latter was chosen, "it is expected that 501,000 companies of companies that manufacture components of the internal combustion engine propulsion system are obsolete if this technology is gradually eliminated for 2035, which is when Brussels intends that these cars can not be sold , predict the report.

In addition, it considers that 70% of these jobs (359,000) will probably be lost in just a period of five years, from 2030 to 2035, which highlights the limited term to manage considerable social and economic repercussions. " At this point, researchers affirm that while automakers have greater capacity to disinstate or internalize activities to compensate for a loss of activity in the scope system, suppliers can not react as agile, since they are required by contracts long-lasting with vehicle manufacturers.

Likewise, the most negative effects would not be given both among the world's first-class suppliers, with a powerful financial muscle, but in "the hundreds of specialized companies and SMEs with less access to capital to invest in the transformation of their business models" .

However, the study recognizes that net loss would be 275,000 jobs, since the production of electrical propulsion systems (assuming an EU battery chain) will create 226,000 jobs. Above all, in the countries of Western Europe, while those of the Center and East of the region will continue to depend more on the automobiles with combustion engine.

The work of PWC Strategy & criticizes that the European proposal 'FIT FOR 55' on CO2 emissions for automobiles and vans is only fixed on the exhaust pipe, ignoring those related to the production of vehicles, fuels and even electricity For those who work batteries.

«There are more options than zero emissions in the exhaust pipe and we must recognize the role that close-neutral fuels to reduce emissions, preserve consumer options, an affordable level and to maintain the global competitiveness of Europe» Ensures Sigrid Vries, General Secretary of Clepa.

By complementing the electrification, a mixed technology approach that allows the use of renewable fuels could achieve a 50% CO2 reduction by 2030, while taking the jobs and created added value. In Spain, Repsol has already worked on projects of this type YPorsche has already begun to build a plant to make synthetic fuels in Chile.

Updated Date: 12 December 2021, 20:48

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