EV shift brings job losses in Germany & Japan

The global transition to EVs will effect hundreds of thousands of automotive jobs in the coming decades.

Multiple automakers across the world have announced their transition to an EV-only line up in the near future. This, however, seems to have inadvertently put a risk to thousands of jobs manufacturing engine components for various vehicles.

According to a media report, the global transition to EVs will affect hundreds of thousands of automotive jobs in the coming decades. Reports suggest that in Japan alone, the rise of EVs will threaten the jobs of over 84,000 employees by 2050; which is more than 10% of the total jobs in auto parts production.

This change is said to have already started taking effect, with Honda announcing the shutdown of its powertrain factory in Moka, Japan in 2025. The shutdown is part of the company's shift to EVs, which will witness roughly 900 employees being relocated to other sites.

Reports suggest that while IC engine powered vehicles need 30,000 components, electric vehicles require just half the number. Volkmar Denner, CEO of Robert Bosch, stated that while it takes 10 people to make a fuel-injection unit of an IC engine, it requires just a single person to produce a motor.

The report also suggests that, similar to Japan, Germany is yet another country which could witness multiple job cuts in the automotive sector. As per a survey by Ifo Institute for Economic Research in Munich - 215,000 jobs would be affected in Germany by 2030, most of which are related to internal combustion engines.

Source: Nikkei.Asia