Going electric could cost the auto industry hundreds of thousands of jobs

The automakers are working on a plan to phase out gasoline vehicles.

While a future full of clean, electric cars will help reduce harmful emissions and stunt climate change, it may spell disaster for the thousands of auto workers whose jobs will be rendered obsolete by new technologies.

Workers who assemble gasoline engines, transmissions, exhaust systems, and other parts that aren't needed in electric vehicles will likely be the hardest hit by the transition. The same production output can be maintained with fewer workers thanks to the simplicity of electric motor and batteries.

Electric cars need 30% less labor than conventional cars, according to Ford and Volkswagen. 40% less labor goes into an EV's motor and battery pack than an engine and transmission, according to AlixPartners.

The impact on automotive employment is still being understood. Some industry watchers think that the sector will lose jobs.

In an interview with Insider, the director of technology at the Center for automotive research said that the industry is going through a transition unlike anything they have ever seen. There is a good chance that there will be fewer people building these cars, fewer people building the parts to these cars, and that will cause challenges in some automotive communities.

The Economic Policy Institute, a liberal think tank, said that the US could lose 75,000 auto jobs by the year 2030. They make up around 5% of the total. European automotive suppliers estimate that rapid electrification will cost them 225,000 jobs by the year 2040.

There will be a lot of activity in battery and motor production, but not without a lot of upheaval.

The shift to EV in Europe will result in 630,000 fewer jobs by the year 2030. 580,000 new roles will be created by the boom in demand for batteries, charging infrastructure, and the like.

The core automotive industry will suffer significant job losses, but some new industries will experience tremendous job growth, according to the firm. According to the Economic Policy Institute, policy measures to spur domestic EV production could lead to the creation of 150,000 automotive jobs in the US.

There is no guarantee that displaced workers will benefit from new jobs. It won't be the same people getting jobs. Smith said it would be new jobs created in new places for new people. Many of the battery plants in the US will be far from current auto manufacturing. Smith said that batteries lend themselves to automation.

White- collar jobs will not be immune. People who design systems for cars will either need to be retrained or lose their jobs if they don't.

Ford plans to lay off thousands of employees from its engine division.

It seems that the technological shift will disrupt automotive manufacturing and employment as much as it will change the makeup of streets and highways.

"We have too many people in some places, no doubt about it," said Jim Farley, the CEO of Ford. We have jobs that need to be changed because we have skills that don't work anymore.