16 December 2021

The European Association of Automotive Suppliers (CLEPA) has warned that a move to electric-only vehicles in the European Union could cost hundreds of thousands of jobs, reports Leatherbiz.

 

CLEPA has carried out a formal study into the changes facing the car industry. Its analysis shows that increased production of electric vehicles (EVs) in Europe is likely to create around 225,000 new jobs between now and 2040. However, it said more than half a million jobs in more traditional automotive production, based on the internal combustion engine, would be lost over the same period, meaning a net loss of 275,000 positions.

 

It said electrification of cars was an essential part of reaching the objectives of the Paris Agreement for slowing global warming, but pointed out that there were “employment risks” in the transition.

 

Further, it warned that 70% of the lost jobs are likely to vanish between 2030 and 2035, meaning there is a limited timeframe for managing the “considerable social and economic impacts” of the change.

 

A mixed-technology approach allowing the use of renewable fuels could deliver a 50% CO2 reduction by 2030, CLEPA said, while maintaining jobs and creating added value.

 

It worked with PwC Strategy to carry out the study. Secretary general of CLEPA, Sigrid de Vries, said it highlighted the risks of an EV-only approach. “Innovations by automotive suppliers have made electric mobility increasingly accessible for consumers and an essential instrument to meet emission reduction targets,” she added. “But society’s needs are far too diverse for a one-size-fits-all approach.”

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