As the UK automotive industry shifts to electricity, more than 22,000 UK jobs associated with gasoline and diesel vehicle manufacturing are at stake.
Motor Manufacturers and Traders Association (SMMT) and PwC warn in a joint report that even with a successful transition to electricity, thousands of jobs will be available and many will be forced to retrain. Did.
According to SMMT, manufacturers of combustion engines and other components not found in electric vehicles currently account for £ 11 billion in sales in the UK, accounting for about 15% of the domestic automotive industry.
In the UK, 22,000 jobs are directly related to international internal combustion engine vehicles. However, the move to electricity will only create an estimated 10,000 jobs, PwC and SMMT warn.
SMMT states that this is a “conservative estimate,” but it raises concerns about the unemployment of thousands of people in this sector.
Electric vehicles are much easier to design than combustion-driven vehicles, require fewer parts to design, and require fewer people to manufacture.
Not all skills are transferable, and many of the skills that can be shifted are forced to be retrained.
Production line workers and people working in areas such as safety, entertainment and interiors may not be affected by the transition to electricity.
However, many of the engines in UK-made vehicles are manufactured in UK factories, such as Crewe’s Bentley factory, which manufactures 12-cylinder models.
In addition, the combustion engine is manufactured for export in the United Kingdom. Ford employs 1,830 people at its Dagenham plant to manufacture diesel engines for use in Puma, Focus, Kuga, Transit Courier, Transit Connect and Galaxy models.
SMMT said the automotive industry and its supply chain need to “make a major transition to survive.”
Studies show that the transition to electricity has resulted in the loss of 501,000 jobs across Europe and only 226,000 created in new roles such as battery production.
SMMT also warned that the UK automotive industry is facing £ 90m in additional spending due to rising energy costs.
The UK automotive industry is already spending £ 50m more on electricity than its EU-based competitors, the industry says.
Energy costs affect where major manufacturers decide to invest in new factories and the large battery plants that the UK needs to continue its industry.
Mike Hawes, Chief Executive Officer of SMMT, said: With the right support, this sector can drive the transition to Net Zero and support employment and growth across the UK and exports around the world. “
The UK automotive industry is not classified as an “energy-intensive” industry like the steel, glass manufacturing and chemical industries. If SMMT was lobbying, you would get a discount on your electricity bill. Battery manufacturing is included in the government definition.