A “forced push” for electric cars in the EU may affect staffing levels in the chemical-intensive automotive industry, the European Automobile Manufacturers Association (ACEA) said on Tuesday.
ACEA’s statement was inspired by a recent report by FTI Consulting and comes in response to the European Commission’s impact assessment, which looked to identify potential implications of the proposed reduction targets on the EU automotive industry.
The FTI report stated that the Commission has underestimated the negative impact of the proposed CO2 targets, saying a rushed shift to electric vehicles will have a “profound impact” on employment.
“This is because the production and maintenance of battery electric vehicles is less labour intensive than conventional ones, given their lower mechanical complexity and fewer parts.”
The report also said that there could be serious implications for the entire automotive supply chain, disproportionally affecting suppliers of parts and components.
“Europe’s automotive suppliers are expected to produce roughly 38% less parts and components for electric cars, compared to a loss of around 17% for automobile manufacturers.”
According to ACEA, it is estimated that batteries will make up 35-50% of the cost of an electric car in the future, but it is wary that those batteries may not be produced in the European Union and may be imported instead, thus negatively impacting the number of people employed in the industry in the EU.
Auto manufacturers are eager to move as fast as they can towards zero-emission vehicles,” said ACEA Secretary General, Erik Jonnaert, commenting on the findings of the report.
“However, the entire European automotive supply chain will need to transform at a pace which is manageable, protecting employment and the long-term viability of the sector.
“This report makes it clear that overly stringent CO2 targets, as well as unrealistic sales quota for battery electric vehicles (the so-called ‘benchmarks’), could lead to serious structural problems across the EU.”
By Niall Swan
Source: ICIS News
INEOS Styrolution, the global leader in styrenics, has today announced the official opening of a new world-scale ABS[1] facility located in Ningbo, China, together with its joint venture partner SINOPEC. The facility has an annual nameplate capacity of 600,000 tonnes.
The merger of Röhm’s Acrylic Products business unit and SABIC’s Functional Forms business has resulted in the formation of Polyvantis. This new company will offer extruded products in the forms film, sheet, pipe and rod for markets that include building and construction, transportation and aviation, electrical and electronics, automotive and home and garden.
Abu Dhabi National Oil Co. (Adnoc) is considering plans to acquire upstream oil and gas company Wintershall DEA, an affiliate of BASF SE, according to a Bloomberg report citing people with knowledge of the matter. A deal to acquire Wintershall DEA could be worth more than €10 billion, the report said. BASF and Adnoc declined to comment on the report.
