"One-Third of Jobs in French Automotive Industry to Disappear Due to Electric Vehicle Transition"

[Asia Economy Reporter Yujin Cho] A study has revealed that one-third of jobs in the French automotive industry could disappear by 2030 due to the transition to electric vehicles.

On the 14th (local time), Bloomberg cited a report released by global consulting firm AlixPartners, stating that in France, home to Peugeot-Citro?n Group and Renault, 15-30% of the automotive workforce could be laid off due to the shift to electric vehicles. The faster the transition to electric vehicles accelerates, the more rapidly layoffs will increase, with up to 52,000 jobs expected to be lost.

AlixPartners revealed this after investigating the impact of the paradigm shift from internal combustion engine vehicles to electric vehicles on automakers and parts suppliers. The study's results were calculated based on the assumption that by 2030, electric and hybrid models will account for 49% and 21% of the market share, respectively.

Alexandre Marian, Managing Director of AlixPartners' Paris office, forecasted that "the trend of workforce reductions due to the transition to electric vehicles will appear similarly not only in France but also in other European countries."

The industry has issued similar warnings multiple times. Some automakers have already begun restructuring to secure investment funds amid intensifying competition in future vehicles such as electric and autonomous cars. Jobs related to internal combustion engine vehicles, including engine and powertrain manufacturers, assembly, and maintenance, are targets for restructuring.

Electric vehicles require only about two-thirds the number of parts compared to internal combustion engine vehicles, so if production of internal combustion vehicles ceases, one-third of all jobs will be at risk. Productivity improvements due to rising raw material prices for electric vehicles and reduced production volumes also contribute to workforce reductions. Automobile production is expected to decrease by 10% in 2030 compared to 2019.

Herbert Diess, CEO of Volkswagen, stated during the Q3 earnings announcement this year that workforce reductions are inevitable for the company to quickly gain competitiveness amid intensifying competition. Diess also mentioned that if the transition to electric vehicles slows down, 30,000 jobs could be lost.

Carlos Tavares, CEO of Stellantis, recently warned that the burden of electric vehicle production costs is exceeding limits, potentially threatening jobs and product quality. Labor unions have also expressed concerns over the large-scale layoffs. European and North American automotive unions have raised their voices for measures, warning that the transition to electric vehicles could eliminate tens of thousands of jobs.

This content was produced with the assistance of AI translation services.