A new study has warned that German automobile industrythe engine of Europe and the pride of the Germans, could lose nearly 190,000 jobs as manufacturers shift toward electric cars.
According to the German automobile industry association, the VDAthe electrification of the sector will reduce employment in the automotive sector by 186,000 jobs in Europe’s largest economy by 2035 compared to 2019 levels.
The shift towards electric mobility will lead to job losses
VDA noted that approximately 46,000 of these jobs, around a quarter of the expected losses, have already been realized as manufacturers focus on producing “just a few purely electric vehicles.”
This warning comes just days after the plans for Volkswagen to close at least three factories in Germany, accompanied by the possible closure of the assembly plant Audi in Belgium, with the dismissal of tens of thousands of employees. All of this as part of an important cost reduction effort.
VDA President Hildegard Müller described the transformation of the industry as a daunting task. “One thing is clear and our study confirms it again: the shift towards electric mobility will lead to job losses”.
And he added that “this reduction in employment is not primarily a crisis, but rather a part of the transformation. However, it is crucial that the political framework supports and guides this change.”
Due to the very nature of the electric car, with many fewer mechanical parts than a gasoline or diesel engine, less employment is generally required to produce these cars.
In Germany, the drop in employment by 75,000 people since 2019 has only been partially offset by the creation of 29,000 jobs in other sectors. The metallurgy, with a loss of 8,900 workers (-16%), is suffering the greatest impact. On the contrary, employment increases in the automotive sector, mainly in car manufacturers, with 10,700 more workers.
However, the balance remains negative and is likely to continue to deteriorate, according to the report’s authors. If the trend observed between 2019 and 2023 continues, the German automotive industry could have lost 186,000 jobs in 2035 compared to 2019.
With Germany being the economic engine of Europe, these prospects are also worrying in Spain. The second car producing country in Europe (more than 1.8 million units in 2023) and eighth producer in the world, just behind Germany, will not be immune to these same changes.
In a context of slowing sales and production in Europe, which requires adjustments both in the electric car market and in that of internal combustion engines, the Spanish automobile industry could be affected in the same proportions. With the added point against that, beyond SEAT SA, R&D does not have as much weight in our automotive industry as in the German one.
Spain has several German-owned car factories, those of SEAT SA, that of Volkswagen in Navarra and Mercedes in Vitoria, while the group Stellar is the main car manufacturer in Spain (the Vigo factory alone produced more than half a million cars in 2023) and is immersed in a crisis greater than that which threatens the Volkswagen Group.
Source: www.motorpasion.com
