CLEPA: electrification transformation will lead to 275000 net layoffs in European automobile industry

Published: Dec 8, 2021 09:18
[the electrification transformation of CLEPA: will lead to 275000 net layoffs in the European auto industry] according to foreign media reports, according to a new study by the industry trade organization CLEPA, the transition from internal combustion engine vehicles to electric vehicles may mean that as many as 500000 jobs will be laid off by EU auto parts suppliers by 2040. The corresponding job growth in the electric car parts industry will not fully offset the loss of jobs in internal combustion engines, with only 226000 new jobs in the electric car parts industry, which means 275000 net layoffs.

According to foreign media reports, the transition from internal combustion engine vehicles to electric vehicles may mean that as many as 500000 jobs will be laid off by EU auto parts suppliers by 2040, according to a new study by CLEPA, an industry trade group. The corresponding job growth in the electric car parts industry will not fully offset the loss of jobs in internal combustion engines, with only 226000 new jobs in the electric car parts industry, which means 275000 net layoffs. Among them, the countries with the highest number of unemployed are Germany (121000), Italy (74000), Spain (72000) and Romania (56000).

This could happen if the EU only allows the sale of zero-emission cars after 2035. The EU plans to reduce emissions by 55 per cent from 2021 levels by 2030. CLEPA calls for a variety of technologies to reduce vehicle emissions, including hybrid technology, green hydrogen fuel technology and the use of renewable fuels. CLEPA points out that this approach could also reduce emissions by 50 per cent while maintaining current employment levels.

According to the study for CLEPA by PricewaterhouseCoopers, European car parts suppliers employ 1.7 million people, while carmakers employ about 1.2 million. In addition, there are about 1.21 million jobs in the tire, body manufacturing, chemical, battery and electrical equipment industries and about 3.2 million jobs in the support services sector.

The study considered three questions: what is the impact of different powertrain technologies on the value that suppliers can add? What is the corresponding impact on employment? What is the impact on climate goals?

Most of the "value added" of electric vehicles will come from batteries, from raw materials to batteries to battery packs to recycling. However, the battery industry is just emerging in Europe, and there are many battery superfactories planned, but only a few are currently operating.

The study found that with the development of the electric vehicle industry, the number of jobs for auto parts suppliers of internal combustion engines will be greatly reduced, especially after 2030. At present, there are 599000 jobs in the European internal combustion engine parts industry, but that number will fall to 513000 by 2030 and to 153000 by 2035.

Three power system schemes are set up in this study.

Hybrid technology: hybrid technology will reduce carbon dioxide emissions from the current 95 g / km to 20 g / km by 2040, adding 200000 jobs.

Pure electric car technology: carbon dioxide emissions will fall to zero by 2040, but 275000 jobs will be lost accordingly.

In one "radical" scenario, carbon dioxide emissions will fall to zero by 2030, but more than 360000 people will be unemployed.

"the needs of society are too diverse to adopt an one-size-fits-all approach," de Vries said in a press release. A regulatory framework open to all available solutions, such as hybrid technology, green hydrogen and the use of renewable fuels, will make innovation possible because we will redefine travel in the coming decades. "

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"
Feb 6, 2026 23:56
"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"
Read More
"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"
"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"
Premier Li Qiang presided over an executive meeting of the State Council to study policy measures for promoting effective investment. The meeting noted that promoting effective investment plays an important role in stabilizing economic growth and strengthening momentum for development. It is necessary to innovate and improve policy measures, and intensify efforts to enhance the efficiency of utilizing funds such as central budget investments, ultra-long-term special treasury bonds, local government special bonds, and new-type policy-based financial instruments. In conjunction with formulating and implementing the 15th Five-Year Plan
Feb 6, 2026 23:56
"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...
Feb 6, 2026 23:54
"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...
Read More
"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...
"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...
Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will thoroughly implement the spirit of the 20th National Congress of the Communist Party of China and the plenary sessions of the Party’s 20th Central Committee, fully and faithfully apply the new development philosophy, strengthen top-level design, build computing power interconnection nodes oriented toward national hub periods, major strategic regions, and key industries, establish a system of computing power interconnection nodes, improve the efficiency and service level of public computing power resources, and promote high-quality development of computing power.
Feb 6, 2026 23:54
Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions
Feb 6, 2026 23:47
Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions
Read More
Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions
Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions
After intensive indirect consultations, the new round of nuclear talks between Iran and the US in Muscat, the capital of Oman, has achieved phased progress. It is reported that during this round of talks, the Iranian and US delegations did not meet directly. Instead, Omani Foreign Minister Badr acted as an intermediary, conveying a series of core proposals, strategic concerns, and policy positions to the other side. The atmosphere at the talks was tense yet efficient. According to preliminary on-site assessments, although both sides continue to negotiate over specific terms, they have reached a consensus on the key objective of "continuing dialogue."
Feb 6, 2026 23:47
CLEPA: electrification transformation will lead to 275000 net layoffs in European automobile industry - Shanghai Metals Market (SMM)