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Electric cars "burn out" employees, the transformation of German industry will reduce 186,000 jobs

2024-10-31 13:26:14Biznes SHKRUAR NGA REDAKSIA VOX

Electric cars "burn out" employees, the transformation of German

Transforming Germany's car industry to produce electric vehicles could cost around 186,000 jobs by 2035. A quarter of those positions have already been lost, according to a new report from the German Association of the Automotive Industry.

This comes as the European car industry is facing a crisis due to drastically changing market conditions. The push to switch to electric vehicles has led to a transformation that has already affected several companies, including Volkswagen in Germany. The company has made significant cost cuts and announced plans to close three factories in Europe's largest economy.

The Auto Industry Employment Outlook report from the Prognos Research Institute suggests that 75,000 jobs have been lost in the auto industry since 2019, with almost 8,900 from layoffs in metalworking.

The final number was offset by an increase of 29,000 new hires, with more than 10,000 new positions in automotive engineering, resulting in a net loss of 46,000 jobs in the auto industry. By 2035, when only battery electric vehicles will be produced, another 140,000 jobs could be cut.

German carmakers and automotive suppliers worldwide are investing around 280 billion euros in research and development alone between 2024 and 2028, as well as another 130 billion euros in plant conversions.

The investments underline the will of German industry to turn the transformation into a success story. As of 2019, there has been an increase in demand for jobs in automotive engineering, technical research and development, as well as computer science, electrical engineering, and software development. On the other hand, construction and welding technology or metalworking jobs are less and less important, and therefore fewer workers.


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