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GlobalData: rising automotive electrification comes at a jobs cost

Following the news that Audi will cut one in ten jobs to fund the shift to electric vehicles (EVs), Graeme Roberts, Automotive Editor at GlobalData, a leading data and analytics company, observed that a big industrial and economic adjustment is ahead as OEMs and suppliers find their footing in the shifting market.

Automakers face massive EV development and tooling costs as they work to comply with strict new fleet-wide CO2 emissions targets. There are currently five million EVs on the world’s roads, which is up two million from 2018. This massive rise is supported by that EVs are relatively simple to build and require fewer assembly line workers. The cuts made at Audi won’t be the last, industry-wide, as more and more companies join the trend.

Rival BMW has just announced a deal with its workforce to reduce profit-related and other bonuses paid at times such as at Christmas. BMW wants €12bn in cost savings by 2022.

Suppliers are also making changes. Continental recently said it would adjust its manufacturing footprint as it changes from making parts for combustion engine vehicles and moves to e-mobility components. About 5,000 jobs are affected over the next ten years.

—Graeme Roberts

Comments

Arnold

As far as sensible use of labour this can only be a good thing.
There are better ways to spend ones time than eg 'shifting dirt from one hole and putting it in another back and forth. Most auto trades workers are capable of other tasks.
The same will be for the service trades. Those that feel the need to stay informed in tech trades will find their skills are fully transferable to so many areas of modern life from R.E. electronics agriculture etc in fact the tech training from transport is 'can do' and relavent.
Aside from the exciting explosive aspect of i.c.e. why would anyone want to stay greasy burnt and vaped working on clunky gas vehicles.
That should translate to consumer savings and a much needed workforce for the future.

SJC

Workers can retrain, humans have been adaptable through history.

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