A new study has predicted that the German auto industry will employ nearly 186,000 people less by the year 2025 and this will all be because of electric vehicles. The market scenario is changing and we are already seeing manufacturers struggle with a global recession also being one of the major factors for the downfall of jobs.
The major reason for this phenomenon is that electric cars just require fewer parts and so many of the positions might soon go obsolete. The study states that jobs which are related to metal processing, business management and welding might take the hit. It also states that the jobs in the IT sector, electrical engineering and also mechanical engineering might increase but it will not be as much as the jobs being lost.
The report says that German automakers are already transitioning but a major impact will come in the next 10 years. The study is also a little contradictory. The electric car industry has also seen a significant downfall in sales. Manufacturers have been backtracking on their EV plans and most of them have shifted their plans to become all electric. Some of them are even pushing the ICE ban which is going to come in 2035.
Volkswagen is setting the biggest example of struggle right now. They have asked their employees to take a pay cut as the manufacturer wants to cut costs to be more competitive in the market. They have already planned to close three plants and Audi is also planning to close one of their plants. The automotive sector is struggling quite a bit in these regards but there are also other factors which are involved in this. Volkswagen is loosing its market share in China, and its EVs are nowhere near as popular as they anticipated them to be in Europe and the US.
