The automotive industry in France is at a crossroads as the country faces a deadline of 2035 to phase out new combustion engine cars. This impending transition has left many workers in the industry worried about the future of their jobs. While there are pockets of optimism, such as the emergence of a “Battery Valley” in the north of the country, workers at parts suppliers elsewhere are facing uncertainty.
Severine Person, a quality control expert at a facility in Vouziers, expressed her concerns about the lack of investment in the transition to electric vehicles. The company she works for, which was bought out by Walor in 2018, is facing challenges as the demand for certain components like transmission differential housings and engine manifolds is expected to decrease with the shift to EVs. The situation is further exacerbated by the fact that the company is now up for sale, putting the jobs of many workers at risk.
The Contrasting Realities in Different Regions of France
The mood in the northern part of France is quite different, with the emergence of battery “gigafactories” offering a glimmer of hope for the industry. Companies like the Automotive Cells Company (ACC), a joint venture involving automakers Stellantis and Mercedes, as well as French oil and gas giant TotalEnergies, are investing in building massive battery plants. These investments are not only creating new job opportunities but also catering to the social need for retraining the existing workforce.
Stellantis’ decision to build a battery plant at the site of an engine factory and provide training to its employees reflects a proactive approach to adapting to the changing landscape of the industry. According to Plateforme automobile (PFA), over 17,000 new jobs are expected to be created in gigafactories by 2026, offering a ray of hope for the industry’s future.
The Potential Impact of Transition to Electric Vehicles on Employment
Despite the potential for job creation in the electric vehicle sector, there are concerns about the overall impact on employment in the French auto industry. A study conducted by the French metalworking industry in 2021 found that as many as 65,000 jobs in the sector could be at risk by 2030 due to the transition to EVs. Economist Bernard Jullien estimates that the shift to electric engines could lead to job losses of 40,000 in the auto parts sector over the next decade.
There are fears that car manufacturers and their suppliers may resort to offshoring production to cut costs in response to the transition to electric vehicles. This could follow the trend seen in the steel industry, where manufacturing was moved offshore to reduce labor costs. While some argue that the electrification of cars could favor small car production in Europe due to lower human labor requirements, others, like Jullien, believe that offshoring may prevail, ultimately leading to a decline in overall employment in the French auto industry.
The transition to electric vehicles presents both challenges and opportunities for the French auto industry. While there is potential for job creation in the emerging electric vehicle sector, there are also concerns about the impact on existing jobs in the traditional automotive sector. It is crucial for companies and policymakers to address these challenges proactively to ensure a smooth transition and safeguard the livelihoods of workers in the industry.
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