Sector News

Move to electric vehicles could negatively impact employment in EU – ACEA

September 5, 2018
Chemical Value Chain

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

comments closed

Related News

January 29, 2023

Dow and 3M cut thousands of jobs

Chemical Value Chain

3M and Dow have announced they are cutting thousands of roles from their global workforces in response to economic pressures. Dow has said it will cut 2,000 jobs across its global workforce (around 5%) in a bid to save US$1bn in 2023. The company says it will also cut costs by shutting down “select assets”, though it did not note where it would halt operations.

January 29, 2023

Sweden discovers Europe’s largest rare earths deposit

Chemical Value Chain

Sweden’s state mining firm has discovered what could be Europe’s largest rare earths deposit, and says it could help the bloc reduce its reliance on imports of minerals needed to manufacture clean technologies and meet climate targets.

January 29, 2023

Avantium to supply Henkel with plant-based FDCA

Chemical Value Chain

Henkel and Avantium have been partners since 2019, when Henkel joined the PEFerence consortium. This consortium of partners, coordinated by Avantium, aims to establish an innovative supply chain for FDCA and PEF (polyethylene furanoate).

How can we help you?

We're easy to reach