As the automotive industry electrifies its vehicles, it is likely to affect both labor demand and the nature of employment in the automotive and parts sectors.of a just transition and a precondition of its realization. In several countries automotive manufacturing has provided relatively high wages that have helped to reduce income inequalities.
Then there’s the uncertainty of just how viable work and employment conditions in BEV production will be. What mechanisms will be in place for workers to transition out of ICEV production into future jobs? The industry narrative speaks to enhancement to the existing automotive industrial base by attracting EV-related work, but a list that’s getting longer each year cites automotive employers for worker rights violations, low pay, and dangerous working conditions.
Changes in production costs, so that, if production costs increase, this could put downward pressure on the sales of vehicles; and, How is the global automotive industry handling union pressures during the transformation to BEV fleets? Here are a few examples.: Starting around 2020, the German government adopted a clearer policy to promote BEVs. The Dieselgate scandal of 2015 was one motivating factor, as German automakers found themselves needing to alter their technological and product strategies due to weakened lobbying capacity at the EU level. Since then the German government has introduced several industrial policies.