Car manufacturing jobs will be put at risk.

E-mobility will inevitably transform the automotive sector but could also increase overall employment in European companies if Europe successfully establishes its global leadership in the sector’s electrification.

Global efforts to achieve the targets of the Paris agreement mean that electric vehicles are already transforming the automotive sector and becoming an increasingly important part of the fleet produced by global carmakers. This change could happen relatively quickly, with some estimates putting the number of electric vehicles on European roads at 33-40 million by 2030.

This transition could lead to increased employment in Europe if we take global leadership in the growing value chains associated with electric mobility. Transport & Energy cite research that, in 2030, European employment could increase by 500 000-850 000 as a result of shift to electric vehicles, with limited or no job losses in the automotive sector, due to the massive reduction in the EU’s oil export bill and the macroeconomic dividend that this brings.

To ensure that European employees benefit the most from the transition to sustainable road transport, a world-leading and competitive value chain for electric vehicle parts must be developed in Europe. , A clear European strategy on electrification, with an awareness of the industrial strategy opportunities, could help achieve this goal.

Concerted efforts to achieve leadership is already being made by the EU in the areas of battery production and technology. This represents a strategic opportunity to build up new industry in Europe, secure “high value jobs and increase economic output”. Indeed, the Commission cites estimates of the European market potential of € 250 billion annually from 2025.

References:

Transport & Environment, “Recharge EU: How Many Charge Points Will Europe and Its Member States Need in the 2020s.”

Transport & Environment, “How Will Electric Vehicle Transition Impact EU Jobs?,” no. September (2017).

Nikolas Hill et al., “Assessing the Impacts of Selected Options for Regulating CO2 Emissions from New Passenger Cars and Vans after 2020,” Final Report for the European Commission, DG Climate Action 4, no. 6 (2018).

European Commission, “Report from the Commission on on the Implementation of the Strategic Action Plan on Batteries: Building a Strategic Battery Value Chain in Europe,” 2019.