Frankfurt, Germany
Half a million jobs would be at risk under EU plans to effectively ban combustion-engine cars by 2035, according to European auto suppliers.
This is the latest in a series of stark warnings about the costs of a rapid transition to emissions-free technology. More than two-thirds of those 501,000 roles would disappear in the five years before that date, according to a poll of almost 100 companies for the European Association of Automotive Suppliers, Clepa, making it difficult to mitigate the “social and economic impacts” caused by mass unemployment.
But the survey by PwC also found that 226,000 new jobs would be created in the manufacturing of electric parts, reducing the net number of job losses to approximately 275,000 over the next couple of decades. The European Commission announced its intention earlier this year to eliminate 100 per cent of CO2 emissions from new cars by 2035. The policy effectively bans the sale of fossil-fuel powered vehicles after that date. While the commission did not order that these be replaced by battery-powered cars, automakers such as VW, the continent’s largest, have all but ruled out other technologies, such as hydrogen.
Clepa, which represents more than 3,000 automotive suppliers, has long argued that the use of interim technologies would cushion the blow of the transition to cleaner transport.
Last year, a government-sanctioned report warned that approximately 400,000 jobs could be lost in Germany due to the shift away from combustion engines. But Volkswagen chief executive Herbert Diess said such apocalyptic scenarios had “probably been a bit overstated”. He added that, a lot of the car remains the same. It is still seats, paint, body work, interiors, wheels, axles and that for 70 to 80 per cent of the automotive supply industry, there is no transition”
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Source: Financial Times
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