Our key findings and recommendations to make the European Green Deal an employment success

Executive Summary of the study “E-mobility: a green boost for European automotive jobs?” for policy makers

The Platform for electromobility has facilitated a report (and data set) – undertaken by the Boston Consulting Group – on the impact of the shift to electric vehicles production on automotive jobs in Europe. The Platform for electromobility represents 45 organisations from industry, civil society and cities that employ around 650,000 people globally.

This study takes a deep dive into the likely opportunities and challenges that will be created by the transformation of the automotive industry in the coming 10 years. Ensuring that workers are guided and accompanied through this transition will be the key to the success of the industry and to preparing them for the jobs of the future.

Key findings: a comprehensive and inevitable transformation

The automotive industry was deeply impacted by the COVID-19 crisis, and will likely need several years to reach pre-pandemic levels of production and profitability. Prior to the pandemic, manufacturers were producing approximately 17.7 million light vehicles in Europe with an overall production value of approximately €700 billion.

The study shows that the industry will rebound, with a shift from internal combustion engines (ICEs) to electric vehicles (EVs). By 2030, some 59% of sales in Europe will come from electric vehicles (70% if plug-in hybrids are included). Alongside electrification, digitalisation will be the second pillar underpinning the carmakers’ recovery: the study projects that the value of software included in cars will increase by 11% each year. Based on the projected volumes of production and sales for 2030, the study concludes that – across the 26 industries within scope of the research, which represent 5.7 million jobs – overall employment is forecast to remain essentially stable compared to the 2019 baseline, with minimal variations in job numbers. Although electrification will contribute in part to these slight variations, the study predicts that EVs will have only a minor net impact on jobs through to 2030, contrary to what some observers expect.

This relatively small net figure should not, however, obscure the massive structural changes resulting from the shift to electrification. Changes in production will modify both the skills requirements and distribution of labour. Over the decade, direct employment in carmakers and ICE-focused suppliers will decrease by 5%, while adjacent industries’ workforce – such as those in energy production and charging infrastructure – will increase by 34%. This transfer from core automotive industries to adjacent industries is examined in detail in the report. It shows that – with more than 580,000 new jobs created by shift to EVs – production of these vehicles will be the main driver for job creation in the automotive ecosystem.

On top of these jobs, a further 40,000 will be created each year by construction and civil works for adapting energy production and distribution infrastructures. Without the shift to EVs, these economic opportunities would not exist at all. The study also expects electromobility to act as a catalyst for further activities in other adjacent sectors to the automotive industry. In the energy domain, we expect 60,000 new jobs to be created.

Overall, the effects on employment in the core automotive sectors caused by the product changes arising from the EV shift will be compensated for by new opportunities created by the electromobility ecosystem. These will be driven, for example, by growth in battery production and charging infrastructure. This finding is all the more significant given that a failure to electrify would likely lead to competitive disadvantages and subsequent significant job losses across European industry.

The report estimates that, by 2030, 2.8 million workers will need to be hired and the job profile of 2.4 million positions will change, with different degrees of training needs to prepare them for future job demands. By 2030, 42% of all employees in the core automotive and adjacent industries will have dedicated training needs. Specifically, 1.6 million will require retraining, while remaining in their current position; another 610,000 will need requalification while remaining in the same industry cluster; 225,000 people will need support to requalify for work in other industries outside the automotive ecosystem. Some of this impact will be felt at local or regional levels, so it is vital that governments provide policies to help those regions adapt to the coming change.

Our recommendations: The need for a robust framework to master the transition

The transition to electromobility does not pose a threat but rather an upskilling opportunity for workers. With the correct political and regulatory choices, the outlook is bright for one of Europe’s strategic industries and its workforce.

It is vital to support workers during this transition to electromobility: the EU, governments and companies should prioritise programmes that invest in the education, training, upskilling and reskilling of the labour force to capitalise on new opportunities, raising the bar on employment conditions, to ensure no one is left behind. This will be an investment for future generations and for the environment.

The Platform welcomed the ambitious ‘Fit for 55’ package unveiled in July, but the social changes this will trigger should be tackled with similar levels of ambition. A fair Green Deal must empower companies, governments and regional authorities to equip the workforce with new skillsets.

European Institutions: Workers in the automotive sector should benefit from a policy framework similar to that already flourishing in the energy-intensive industries, thanks to the Just Transition Fund, Just Transition Platform and Just Transition Mechanism. This new policy framework should assist industrial stakeholders, local, regional and national authorities in accomplishing the following steps:

Industrial stakeholders: For employers – and notably carmakers – support will be needed to design requalification and upskilling programmes and hiring as well as restructuring programmes. Battery manufacturing and the deployment of infrastructure both for distribution via charging stations and production via renewable energy will be a core provider of jobs during this transition. Their rapid growth should be underpinned by ambitious regulations and targets. Support should be provided, particularly for small- and medium-sized enterprises during the transitions, as they will lack the analytics and training resources of bigger companies.

Local and regional authorities: Behind these numbers lie human lives and territories where they live. Relocations should thus be avoided where possible by adapting existing production plants, and training for new skills where they are needed. Local and regional authorities will play a key role in addressing the knowledge gaps in the workforce both for EV production and for the full EV system and value chain. The new ESF+ should be an instrument for supporting local and regional authorities in this field.

National governments: Governments need to perform holistic, ‘whole-of-economy’ workforce planning at a national level. This needs to be done in close cooperation with regional and local authorities as well as industrial stakeholders, and must include advanced models for supply and demand, such as:

  • Helping employees manage their transitions. It is essential to rethink education and reskilling and provide additional initiatives; the main challenges, such as the need to requalify workers for a different industry, should receive the highest priority.
  • Tailoring educational curricula appropriately. For young people entering education, Governments will need to gear them – and for job seekers – towards new automotive technologies.
  • Building new career and employment platforms. The public sector should help workers to navigate to jobs and training opportunities more quickly and easily.
  • Updating social safety nets. These will need to be revised in order to promote up- and re-skilling during transitions, as well as supporting part-time workers and those people unable to adapt to new challenges.

They reported our study:

  1. Reuters: https://www.reuters.com/article/autos-europe-electric-jobs-idINKBN2GN26J
  2. Politico : https://pro.politico.eu/news/politico-pro-morning-mobility-vw-compensation-pressure-imo-climate-neutrality-call-fit-for-55-costs?utm_source=POLITICO.EU&utm_campaign=bfe97b311b-EMAIL_CAMPAIGN_2021_09_29_04_59&utm_medium=email&utm_term=0_10959edeb5-bfe97b311b-190774208
  3. Ends Europe : https://www.endseurope.com/article/1728880/ev-transition-will-minor-impact-total-auto-jobs-study-finds
  4. Euractiv: https://www.euractiv.com/section/electric-cars/news/shift-to-evs-means-huge-reskilling-job-for-europe-report/
  5. Automotive News Europe: https://europe.autonews.com/automakers/shift-evs-means-huge-reskilling-job-europe-study-says?utm_source=daily&utm_medium=email&utm_campaign=20210928&utm_content=hero-headline
  6. Yahoo Finance: https://au.finance.yahoo.com/news/shift-evs-means-huge-reskilling-220920083.html?soc_src=social-sh&soc_trk=tw&tsrc=twtr&guccounter=1&guce_referrer=aHR0cHM6Ly90LmNvLw&guce_referrer_sig=AQAAAJrlwm12aslHP0qvGsu8voim-hoYJP2N9ur-AIvpgwL_Od1kwmrZUxk8yoc0amUzdOmXbfK66OWJ9jy0G1vdaLp9GesVGoKUybo_vJjaTEJ5YBosvGpbArsBwezSDMOcmW61uC4zosOHkYjW3Qxl44tzETmYU5DVyJqIfLevbmFx

Denmark

  1. Mobility Watch: https://mobilitywatch.dk/nyheder/persontransport/article13320099.ece

 

China:

  1. MSN: https://www.msn.com/zh-tw/money/topstories/%E6%A2%85%E5%85%8B%E7%88%BE%E5%9C%A8%E4%BD%8D16%E5%B9%B4-%E5%BE%B7%E5%9C%8B%E6%95%B8%E4%BD%8D%E6%95%99%E8%82%B2%E5%8C%B1%E4%B9%8F-%E6%8A%80%E8%A1%93%E8%90%BD%E5%BE%8C%E7%89%B9%E6%96%AF%E6%8B%89/ar-AAOTh2w
  2. Technews: https://technews.tw/2021/09/28/merkel-reigned-for-16-years/
  3. Shenzen Daily: http://www.szdaily.com/content/2021-09/29/content_24610041.htm

 

UK

  1. UK Investing: https://uk.investing.com/news/commodities-news/shift-to-evs-means-huge-reskilling-job-for-europe–report-2472496
  2. Business Fast: https://www.businessfast.co.uk/shift-to-evs-means-huge-reskilling-job-for-europe-report/

 

Italy

  1. QuattroRuote: https://www.quattroruote.it/news/industria-finanza/2021/09/28/boston_consulting_group_la_mobilita_elettrica_richiede_una_massiccia_riqualificazione_dei_lavoratori_europei.html

InsideEV Italia : https://insideevs.it/news/536915/auto-elettrica-posti-lavoro-bcg/

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Corporate cars: the n°1 leverage to boost EV uptake

The event will be held in person with limited seats. Register today to secure a seat free of charge. Confirmation will be sent to each participant individually.

The Platform is calling for a mandate on the electrification of corporate cars in Europe - the event will be the opportunity to discuss it with stakeholders and European institutions

Speakers

Saul Lopez (T&E)                      Dario Dubolino (DG MOVE)      Hayden Lutek (Lease Plan)        Jérome Audhui, French Permanent Representation (TBC)


Moderation by Cédric Thoma (Telsa)

When and Where ?

20th October 2021
14:15 - 15:30

Avenue des Arts 56, 1000 Brussels

The Platform recommended setting a gradual approach to progressively but eventually reach the objective of 100% of new vehicle purchase in corporate fleets to be fully electrified by 2030. Discover why here.

Discover information and figures supporting the drafting of a mandate on corporate cars electrification.

Agenda and Speakers

Welcome address Cedric Thoma, WG Chair, Tesla
10min Presentation of the recommendations form the Platform Saul Lopez, T&E
20min Presentation of best practices from committed companies Hayden Lutek, LeasePlan

 

20min

 

Reactions from European institutions Dario Dubolino, DG MOVE

Council representative, TBD

20min Q&A from attendees Cedric Thoma, WG Chair, Tesla

Know more about corporate fleets

Company cars[1] are the elephant in the room that leads Europe to reach its new −100% target in 2035. Corporate fleets represent an estimated 63%[2] of new registrations in 2021 and drive on average 2.25 times more kilometres than private cars. The decarbonisation of company cars is a key leverage to reach climate target with reduced political risks. While immediate results are clear for the planet, there are also strong second-hand impacts on democratisation and affordability of EVs for everyone, without making the low-income classes bear the cost of the transition.

The Platform for electromobility organises an event to raise awareness among stakeholders and policy makers on the obvious, but nonetheless overlooked, benefit the electrification of company cars can trigger. To make this necessary step forward and grab this low-hanging fruit, the Platform recommends setting a gradual approach to progressively but eventually reach the objective of 100% of new vehicle purchase in corporate fleets to be fully electrified by 2030. The Platform outlined in recent publication why and how to create this mandate.

The event will showcase best practices from major fleet owners and companies that have committed to electrify their fleets. It will also be the opportunity to hear reactions from institutional stakeholders and on they actually intent to enshrine in law and implement the EU Smart and Sustainable Mobility Strategy’s announced “actions to boost the uptake of zero-emission vehicles in corporate and urban fleets”.

[1] Any passenger car that is part of a larger fleet within the commercial market channel.  Three categories are commonly taken into account : -Short-term rental / Rent-a-car : all registrations made by rental car companies ; -OEMs / dealers / manufacturers : Demo’s, loan cars, one day registration, 0km, registrations made by manufacturers against themselves ; -True fleets : All except the above categories.

[2] https://www2.deloitte.com/content/dam/Deloitte/cz/Documents/consumer-and-industrial/cz-fleet-management-in-europe.pdf


Fit-for-55: how to make europe lead on electromobility

The Commission is due to present its “Fit for 55 package” — aimed at achieving a 55 percent emissions reduction by 2030 — in June. The event will launch the political debate, present and bring together various priorities on each of the main files related to electro-mobility by industrial stakeholders.

Keynotes speeches

Julia Poliscanova, T&E

Daniel Mes, Member of Cabinet of EVP Frans Timmermans

Q&A with keynote speakers

Self-challenging Panel discussion between sectorial stakeholders*

Suppliers- Emilia Valbum, 3M

Manufacturers
– Marie-France Van der Valk, Renault
– Jos Dings, Tesla

Infrastructures
– Arne Richters, Allego

Rail
– Nicolas Erb, Alstom

Energy-
Giovanni Coppola, ENEL X

Wrap-ups

Views of the demand side – Sandra Roling, EV100

 

*Representatives from the five key industries of electromobility will challenge each-other in an innovative webinar format based on questions sent ahead of the event by attendees.


Electromobility: a green boost for European automotive jobs?

First-ever beforehand presentation of Study on the impact of the shift to electromobility on automotive employment in Europe

The automotive sector is a major employer facing the largest technological transition it has ever known. The automotive industry and its direct supplier represent today more than 6 million European jobs and over 18 million cars. By 2030, at least 30 millions of them will be operating without traditional fuels on European roads. This ambition by the European Union will lead to an unprecedented shift for the automotive industry which has to transform their production from combustions cars to electric vehicles, as well as a high impact on charging infrastructure needs. When Europe will turn to electromobility, what is the impact on the affected jobs within these sectors?

The Boston Consulting Group (BCG), along with the Platform for electromobility, will be present beforehand the result and findings of their recent study on the impact of the shift towards electromobility for the European jobs in the industry. The study covers affected industries from OEM to Tier’s and infrastructure at a European level. The study shows a major shift within the industry. Countries and regions that will be best prepared to capitalize on emerging opportunities by embracing the shift -invest in the new technologies, create a favorable policy environment, invest in re-skilling workers, etc- will have a much higher chance to do so. Those who hold on to the past will be left with an obsolete industry, decreased demand, and face serious unemployment challenges.

Agenda

Welcome Address – Arne Richters, Chair of the Platform for electromobility

 

Presentation of the results of the Study and reaction from the European Commission

Daniel Kuepper & Kristian Kuhlmann, BCG

– Frank Siebern-Thomas, Acting Head of the Unit “Fair, Green, and Digital Transitions” DG EMPL

Panel discussion: Capitalize on emerging opportunities

– Marie-France Van der Valk, Renault

– Julie Beaufils, EuropeOn

– Alex Keynes, T&E

– Representative from Trade Union (TBD)

Closing Remarks – Nicolás Gonzales-Casares, MEP (S&D)


What framework for the development of a competitive and sustainable European EV battery industry?

09:30 – 09:40 Welcome Address

With Ville Niinistö Member of the Committee on Industry, Research and Energy at European Parliament

09:40 – 10:20 Panel discussion (Part 1): Production and Competitiveness – Battery Production

With Jos Dings, Director European Policy and Business Development, Tesla

and Emma Weisner, Public Affairs Manager at Northvolt

and Alex Keynes, Clean Vehicles Manager, Transport & Environment

and Patrick de Metz, Corporate Government and Environmental Affairs Director, SAFT

and Jytte Guteland, member of the Committee on the Environment, Public Health and Food Safety at European Parliament

10:20 – 11:00 Panel discussion (Part 2): Recycling & 2nd life: complementarity in the revision of the Battery Directive

With Jean Denis Curt, Recycling & Circular Economy Unit Manager , Renault-Nissan

and Francesco Gattiglio, Director EU Affairs & Policy, EUROBAT

and Claude Chanson, Corporate General Manager, Recharge

and Rita Tedesco, Climate & Energy Programme Manager, ECOS

and Maria Spyraki, Member of the Committee on Industry, Research and Energy at European Parliament

11:00 -11:10 Closing speech

By Claudia Gamon, Member of the Committee on Industry, Research and Energy at European Parliament
-> With the Event moderator

Philippe Vangeel, Secretary General, AVERE -– The European Association of Electromobility