The significant shift in the automotive world seems set to impact workers the most. Plans for electric vehicles in Europe are leading to major changes in factories, raising concerns that half of the workforce could face layoffs.
Half of Automotive Workers in Danger
The automotive sector in France is facing a serious employment crisis as the transition to electric vehicles accelerates. Industry representatives have warned that hundreds of thousands of job losses may occur in the coming years.
The French Automotive Suppliers Association stated that declining car sales, a sluggish electric vehicle market, and competition from China could eliminate half of automotive employment. The French Federation of Vehicle Equipment Industries also indicated that 50% of jobs in the sector could be lost within the next five years.
These warnings coincide with major automakers embarking on comprehensive restructuring efforts to transition to electric vehicles. For instance, the German automotive giant Volkswagen has ended its long-standing job security policy and plans to close factories, resulting in the layoffs of over 15,000 workers this year.
Stellantis CEO Carlos Tavares noted their intention to offer electric vehicles at the same price level as gasoline models, stating they aim to avoid repeating Volkswagen’s mistakes. However, the inability to reduce electric vehicle prices could accelerate the anticipated job losses in France.
The shift from internal combustion engines to electric motors over the next decade is expected to lead to a major transformation in the global automotive industry, putting hundreds of thousands of automotive jobs at risk.
