Electric Vehicle Transition Could Cost Italian Automotive Industry Billions
- Written by : Ashton G. Curran
- Date Published : 2023-04-09
- Date Updated : 2023-04-09
- Category / Tag : articles
Although the industry recorded a recovery in car sales in March, it is not enough to change the prospects of an industry in fibrillation.
The cost of this decision could be high for the Italian automotive components supply chain, which employs 160,000 people globally with a turnover of 45.8 billion euros.
The situation is different for those small and medium enterprises of the national components of the engines, as Italy could lose about 45 percent of its value added in the sector and 90 percent of its full-time staff.
The Electric Vehicle Transition Impact Assessment Report 2020-2040 study, carried out by Clepa (the European association of suppliers in the automotive sector) and strategy& (PwC network), reveals that in countries with an almost absent production of electric vehicles and low employment, such as Italy, big troubles are expected between 2020 and 2040.
Specifically, Italy's added value of production would go from 8.7 billion euros in 2020 (8.5 from vehicles with internal combustion engines and 0.2 from electric ones) to 4.7 billion in 2040 (0.8 from vehicles with internal combustion engine and 3.9 from electric ones).
In contrast, Germany's added value would increase from 22.5 to 24.2 billion euros in the same period due to their earlier adoption of the electricity transition.
The situation in Italy is concerning for small and medium enterprises of the national components of the engines, as they face an uncertain future due to the rapid transition to electric vehicles.
While the Italian government has taken a correct position on this issue, the game of the transition to the electric car puts 275,000 employees at risk throughout Europe by 2040, net of the job opportunities created by electrification.