Endangered Green Auto Workers

The striking union figures out that electric cars will cost jobs

WSJ editorial. Excerpts:

"But EVs make up only 2% of U.S. auto sales despite state and federal subsidies that can exceed $10,000 per car.

The economic risks are clear even to the UAW, which published a paper this spring warning that electric cars could cause thousands of job losses because they require fewer parts and less labor. An electric powertrain for a Chevy Bolt has 80% fewer moving parts compared to an internal combustion engine, but it is about three times as expensive.

Volkswagen CEO Herbert Diess has said that “building an electric car involves some 30% less effort than one powered by an [internal combustion engine]. That means we will need to make job cuts.” GM will have to do likewise to compete. According to the paper, Ford has told investors “the product simplification that comes from EVs” can lead to “a 30% reduction in labor hours per unit compared to ICE production.”

Auto makers will also have to cut labor costs as electric cars crimp profits. The UAW says that auto makers won’t produce a profit on EVs comparable to gas-powered cars until 2028, which is one reason the UAW has demanded job guarantees and much higher wages in its new GM contract. The union knows EVs will dent future profits so workers better strike while they have more leverage."

"auto makers are losing money from making products that consumers don’t want in order to comply with government mandates, while most new jobs will be in countries with fewer labor and environmental regulations."