Study by CLEPA and PwC Strategy&

CLEPA and PwC Strategy& worked for the assessment of the impact of three different Green Deal policy scenarios on employment. CLEPA is the European Association of Automotive Suppliers based in Brussels, represents over 3.000 companies. They include from multi-nationals to SMEs, supplying state-of-the-art components and innovative technology for safe, smart and sustainable mobility,

Three different scenarios represent a mixed technology approach, the current EV-only approach proposed in the Fit for 55 package. The other is a radical EV ramp-up scenario. What’s more, all three scenarios assume accelerated electrification to meet climate goals. It is a high market share for electric vehicles by 2030 of more than 50%, almost 80%, and close to 100%, respectively.

The automotive manufacturing sector is responsible for more than 5% of the overall manufacturing employment in 13 EU Member States. Furthermore, more than 60% of these workers are relating to automotive suppliers. Thus, the study is insightful for not only multi-national automotive manufacturers but their suppliers.

In fact, automakers have greater capacity to divest or insource activities to compensate for a loss of the powertrain domain. However, automotive suppliers can react with much less agility, as they are bound by long-term contracts with vehicle manufacturers. Other than global and well capitalized industry leaders, the sector consists of hundreds of specialized companies and SMEs. They do have less capital to invest in the transformation of their business models.

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