Electrification transformation may lead to 30% layoffs in French auto industry

Published: Dec 16, 2021 13:45
[electrification may lead to 30 per cent layoffs in the French auto industry] A new study shows that as France accelerates its transition to electric vehicles, many parts suppliers are out of date by 2030, according to foreign media reports. The French auto industry could lose nearly 1/3 jobs. AlixPartners, a US consultancy, was commissioned by La Platforme Automobile, a French car lobby, to conduct a study on France's transition to electric cars. The French auto industry will cut jobs by 15% to 30%, according to the study.

SMM survey: what kind of metal do you like most in 2022?

According to foreign media reports, a new study shows that as France accelerates its transition to electric vehicles, many parts suppliers are out of date and the French auto industry could lose nearly 1/3 jobs by 2030.

AlixPartners, a US consultancy, was commissioned by La Platforme Automobile, a French car lobby, to conduct a study on France's transition to electric cars. The French auto industry will cut jobs by 15% to 30%, according to the study. Judging from the speed at which electric cars are popularized, this will mean that as many as 52000 people have lost their jobs. Carmakers have cut the most jobs, but jobs in emerging industries such as battery manufacturing are likely to increase, the report said.

The AlixPartners study is the latest pessimistic view of the impact of the transformation of electric vehicles on employment. Deiss (Herbert Diess), chief executive of Volkswagen, has tried to ease tensions with workers in recent weeks after he hinted that massive layoffs might be needed to compete with Tesla. Carlos Tavares, chief executive of Stellantis, also warned that electrification would require a significant increase in productivity.

Alexandre Marian, managing director of AlixPartners in Paris, said the report also applies to other European countries. Marian also said suppliers would feel more pressure to produce equipment such as electric vehicle motors for carmakers.

Other highlights of the report:

1. The study assumes that the proportion of French models in 2030 is 49% for electric vehicles and 21% for plug-in hybrid vehicles.

2. Car production in 2030 will be 10% less than in 2019.

3. The price of electric vehicle parts is about 60% higher than that of internal combustion vehicles, which brings the average cost of each electric vehicle to 24000 euros ($27000).

4. As carmakers increase internal production of some parts such as batteries through joint ventures, the number of car parts supplied by French suppliers will fall by about 11 per cent.

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 for 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
[SMM Analysis] Million-Tonne Lithium Mine Project EIA Accepted, Pressing Fast-Forward on Snoway Development
11 hours ago
[SMM Analysis] Million-Tonne Lithium Mine Project EIA Accepted, Pressing Fast-Forward on Snoway Development
Read More
[SMM Analysis] Million-Tonne Lithium Mine Project EIA Accepted, Pressing Fast-Forward on Snoway Development
[SMM Analysis] Million-Tonne Lithium Mine Project EIA Accepted, Pressing Fast-Forward on Snoway Development
The Sinowei Lithium Mine (Dechelongba Spodumene Mine) has retained resources of 24.924 million mt of ore, with an average Li2O grade of 1.34%. Designed for open-pit mining, it has a capacity of 1.5 million mt/year. The project has now entered the environmental impact assessment (EIA) acceptance stage, and construction is progressing as planned. SMM believes that the capacity release pace of this mine meets market expectations, as the market has already fully priced in the commissioning pace of such large mines. The subsequent real marginal variables remain the actual mining progress and the pace of profit recovery in the lithium chemical processing segment.
11 hours ago
[SMM Analysis] China's Lithium Raw Material Imports Near 80kt LCE in June
14 hours ago
[SMM Analysis] China's Lithium Raw Material Imports Near 80kt LCE in June
Read More
[SMM Analysis] China's Lithium Raw Material Imports Near 80kt LCE in June
[SMM Analysis] China's Lithium Raw Material Imports Near 80kt LCE in June
14 hours ago
China-Kazakhstan Perovskite PV and All-Solid-State Energy Storage Center Unveiled in Ordos
15 hours ago
China-Kazakhstan Perovskite PV and All-Solid-State Energy Storage Center Unveiled in Ordos
Read More
China-Kazakhstan Perovskite PV and All-Solid-State Energy Storage Center Unveiled in Ordos
China-Kazakhstan Perovskite PV and All-Solid-State Energy Storage Center Unveiled in Ordos
[Solid-State Battery: China–Kazakhstan Perovskite PV and All-Solid-State Energy Storage Research Center Unveiled in Ordos] On July 6, 2026, the China–Kazakhstan Perovskite PV and All-Solid-State Energy Storage Research Center was officially inaugurated at the Ordos New Energy Research Institute. Jointly established by Beihang University, Nazarbayev University of Kazakhstan, and the Ordos New Energy Research Institute, the center will leverage Ordos’ industrial resources and Beihang’s research strengths to promote joint research and technology transfer in perovskite PV and all-solid-state energy storage, building an innovation platform for China–Kazakhstan new energy cooperation. SMM believes that the deployment of large-scale all-solid-state energy storage projects is still more than five years away.
15 hours ago
Electrification transformation may lead to 30% layoffs in French auto industry - Shanghai Metals Market (SMM)