A trade group representing more than 1,000 auto suppliers has warned the Biden Administration that transitioning to an all-electric vehicle fleet too quickly could result in thousands of lost jobs, Reuters reports.
The Motor & Equipment Manufacturers Association (EMMA) told a Senate Commerce subcommittee this week that banning the sale of new gasoline vehicles in the United States will cost ”
30% of the supplier jobs in this country.” The EMMA represents over 1,000 auto suppliers, including major industry players such as Bosch, Delphi and Valeo.
The Biden Administration has not said it will ban the sale of new gasoline vehicles on a federal level, however two major automotive industry trade groups have called for the president to put forth a “comprehensive plan,” to boost EV sales “that takes the present market realities into consideration.” The trade groups also called for new policies that are “sufficient to meet our goal of a net-zero carbon transportation future.” Several states have also sought their own date for a hard ban on gasoline-powered vehicles, including California, Massachusetts and Washington.
Suppliers and the United Auto Workers have warned political leaders that transitioning to battery-powered fleets will result in lost manufacturing jobs, as EVs do not require as many unique components as internal combustion engine vehicles. For example, an electric motor features less moving parts than an internal combustion engine and does not usually require a transmission. EVs also do not require fuel systems, exhausts or catalytic converters, among other related components.
“Engines, transmissions, after-treatment systems, and other parts will simply not be manufactured for battery electric and fuel cell vehicles,” Ann Wilson, MEMA’s senior vice president of government affairs, told the Senate subcommittee this week.
General Motors has a self-set goal of ceasing the production of emissions-producing vehicles by 2035. While the automaker has said the 2035 date is more of an aspiration than a hard-set goal, this strategy is indicative of the automaker’s commitment to EVs. Other automakers have also committed to producing EVs only by a certain date, such as Volvo, which plans to cease the production of all of its internal combustion engine products by 2030.
White House climate adviser Gina McCarthy said the Biden Administration is not setting forth any hard dates to ban the sale of internal combustion engine vehicles at this time and will instead seek other ways to reduce greenhouse as emissions in the country.
“We’re not making any demands right now because this is about basically using the market to generate the kind of reductions we need,” McCarthy said, as quoted by Reuters.
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Comments
Oh this is going to be a big shake up to many companies and many will vanish while others will transform and some will adapt.
The MFGs that make Bearings, Cranks, Cams and related engine parts will take a hard hit. The transmission and rear ends or exhaust will also be affected.
Many like Magna and the like have been adapting. Others like MAHLE are looking to build their own 2-3 cylinder Hybrid engines to be a unit supplier to needed applications abandon by many automakers.
My line of work in the performance aftermarket is now looking to find areas where we can fit in and parts we can supply to hop up add performance or customize EV models.
Other industries are being challenged like the tire industry. They need to supply tires that are more quiet, ride good, efficient with low rolling resistance and deal with greater weight loads but still wear and grip as expected.
The auto industry and Unions are going to go to war over the battery plants and even some assembly plants. Jobs will be cut as shorter lines with less parts to assemble will be in play.
Now there will be more jobs created making parts for the EV models in many different ways. New opportunities will be created because of their nature. Chargers for homes, Charging stations for gas stations or charging locations. Tools to work on these and techs needed to learn how to work on these.
There is a ton of opportunity out there in this deal for money to be made but many will have to respond now. Many will need to reinvent what they do or time will run out on them.
With this transition happening over 20 years it is not too late but now is the time to start.
The bottom line is anymore that the EV cars will be cheaper to build and sell than ICE as regulations strangle the customers with higher and higher development cost. Lets face it as today the average car price is coming up on $40K. Yet the cost of batteries and EV motors are going to decrease in the coming years as will the labor cost with less people on the line.
When you look at the automakers who have set dates it is clear they have made their choices and no matter what the regulations are they are not going back unless forced.
A lot will happen in the coming 20 years. This is not unlike the transition from Horse to car. That put out many companies but also created many more.
The other wild card is who else will enter this market. Apple appears to still be in the game and they don’t build cars. Will automakers become like Foxconn and just assemble others cars? Will Foxconn just build cars. Heck GM is going to build Honda’s already.
yea very good points.
Sure there will be a loss of jobs in one area when EV’s become the predominant car on the road, but then again a lot of new jobs will be created in making electric motors, sensors, computer chips, charging infrastructure, etc, etc.
Those jobs created will be in China
As stated before, if any manufacturer wants to sell in China, they MUST produce in China or face massive import taxes. So you will never stop manufacturing of cars or parts in China no matter want you say or do.
Yes new jobs will be created but the workers for those jobs seldom transfer over and are seldom in the same area. Also there are gaps in end and creation.
Few guys welding pipelines in South Dakota will be assembling solar panels there for the same wage.
Millions will lose jobs in related industries, as far as I know there was never a study done on the effect of the switch to battery power if it has it was never released. We will never get the real truth and will just have to be forced to accept it.
Foe example are Auto manufacturers going to supply Free charging units for every vehicle sold and are the going to pay for installation. What about the millions of people living in apartments, to flood the market with Ev’s is a Big mistake.
I’m curious as to where the electricity to power all these EV’s is going to come from with fossil fuel production being slashed and possibly eliminated. Can’t wait to see windmills on the roofs of EV’s. We are outrunning common sense.
Hopefully sleepy Joe will only be a one term president.
Nope, Joe will not finish his term, for various reasons. Kamala will finish his term, with her sights set on running two more times on her own for Pres.
She will assume office within this year, she will not be eligible for two more terms. Plus I don’t believe even liberals will vote fore her ideas .
“2035 is an aspiration date” from a company that just had 2 engine patents granted, one for an ultra high compression cycle, another for a variable compression with an independent compression and exhaustion stroke. So money isn’t where their mouth is after all.
2035 is still 14 years away. That’s at least 2 vehicle generations. Cadillac has said they aren’t producing any new ICE vehicles. But the Escalade in ICE form was just released so I have to imagine the EV ICE will be sold in parallel for several years with the EV. ICE vehicles will still be released in the next 14 years. I think the plan is fewer investments in ICE, not zero.
Well, and california already banned and then dropped the ban on gas vehicles, we got 14 years of more power outages in all the CAFE state, EXON has already invested heavily in carbo. Recapture. By 2035, GM can say go ahead and we will still sell ICE engines, but you better be responsible and use capture carbon fuel, but more than likely by 2035, they’ll just say….2 more years …. It’s all flaunt and show. Hey, of it’s bringing back yota and beemer customers to GM, more power to them.
wait until hurricanes, earthquakes, everything.
Is this similar to the transition from horses to internal combustion cars? Now it’s a transition to electric. This year we have purchased two new ICE cars. Rest assured the future is coming, but the sky is not falling.
Yes ICE and EV will both coexist but less ICE will be coming till it is phased out,
If needed I am sure they run past 2035 if needed. The targets are flexible but coming.
The high compression cycle and variable have been in play since before the bail out, neither may make it to market.
That’s all old tech. We are on the verge of HCCI. The problem everyone makes is in thinking that EV’s are inheritly superior, just like the union thought themselves as in the first battle of Bull run. A 500 hp electric industrial motor that is 92% efficient weighs 5000lbs and is the size of a VW bug. These “500hp” EV’s are woefully inefficient. They do 20 HP decently efficient enough, but that’s it. That’s why lordstowns baja trial tanked. There’s lots of work to be done on electric motors as well as batteries. In that 14 year see got till ICEmagetton, there are lots of tech coming for ICE engines. Might I point out that the GMT 400 trucks made 17 mpg, and now the Colorado, which tows the same amount, has the same footprint dimensionally, gets 26. In 14 more years, as EXON invests into carbon recapture, and ICE engine will make more MPGe off carbon recapture than EV’s based on current projections.
It is not what is better or what is new coming. It is all about cost and ICE will get more expensive and EV will get cheaper and more profitable. That is why MFGs are changing.
Lordstown failed because they are a shoestring company with a very undeveloped product. Their test track is the parking lot.
It will all be about building vehicles cheaper and more profitable and with electric they will do it.
From your comments, it seems you think a base Malibu will cost $40K by the end of the decade? That is about what the MSRP is for a much smaller base BOLT today. So will the Malibu replacement be the size of the car it replaces, or will we be stuck with sub-compact EV’s like the current BOLT for our $40K? If so, that will turn a lot of people off to EV’s.
The top model Malibu I’d near $40k now sticker price.
If we stay with ICE the cost will go up and they may not even offer a Bu.
If they build it as an EV the price will decline or remain the same as the cost of EV components decline. This will make for larger EV models at lower cost than a Bolt. The Bolt lime model may be $25k in 20 years.
Everyone claimed the Lyriq was going to be $100k but it will be $59k.
Battery cost has dropped from $110000 kWh to $100 kWh in the last 10 years. It is expect to reach $60 kWh in the near future.
Also the cost of motors and other items will drop with volume.
Look this is not my Opinion but of the engineers interviewed in ASE Automotive magazine that addresses the future tech being worked on now.
These lower cost are why all the automakers are now embracing the EV path. They could care less about Biden and trees. It is all economics.
Same engineers who told us that the Prius was the future and that large SUV’s were dead in 2004? Still doesn’t add up dude, if batteries even were dropping to 30$kwH, most people would still demand more than 250 miles range, and that bolt STARTs at 40K, and goes up from there, Malibu’s top out a little over 40K, and like mentioned before, Malibu’s a whole class higher. The now discontinued sonic is more the bolts class. Those started at 10, maxed out a 30, and could be bought for 15 after bargaining.
Also! Do your research! Future ICE won’t be more expensive! Current R&D is focusing on engines burning so clean that no CAT is needed, that alone is a money saver. Diesels are figuring out ways past DEF and dual catylist, and Cummins at this moment is testing their legendary strait 6 using cylinder deactivation to keep the exhaust hot enough that only a particulate filter and a backup 1 stage converter is needed
Research shows the ICE technology based on fossil fuel, and fossil fuel extraction technologies are at their endpoints. Economically, the endpoint always represents a tipping point…tipping in favor of alternatives. Logic and science work that way, irrespective of all the reasoning otherwise you can throw back.
The base Malibu I could look at when I was buying a new vehicle was 40K. The dealer also, didn’t have any Bolts either. This was before the Bolt EUV days.
Cadillac will be an irrelevant luxury brand for many more if the abandon ICE vehicles.
I heard ”the big guy” copped a feel on Mary.
Yep, about time, i truly hope that biden will end up on the same boat as the lame jimmy carter, his presidency is truly becoming an embarrassment.
Biden = Carter 2.0. The only difference is that Biden messed up in three months what it took Carter four years to do.
BS Biden knows his time is up in ’24, Trump too polarized for him to run and win but a Trump endorse central guy can take the WH.
The aftermarket would have to adapt somewhat but 2035 is a long time for any significant commitment to E/Vs only.
well done joe
Looks like my last GM vehicle is 2034.
Before EVs can be feasible as major players the infrastructure has to be totally replaced to support them. How many decades will that take? I don’t see any electric companies jumping at the chance to rebuild the electrical infrastructure. IMHO that means they’re not worried about EVs becoming major transportation players. EVs are great commuters for traveling 20 miles to work everyday and recharge over the weekend, but wil not replace ICE for vacations, work, nor anything else that requires large electrical demand. EV trucks are only going to be used in local deliveries or Less Than Truckload service where they go 150 miles and return to the home terminals for recharging, you’ll never see trucks traveling coast to coast on battery power. A load of produce would spoil before it got 1/3 of the way.
H8 2 break it 2 u but, Class 8 electric trucks, last I read, will be hitting the road in 2025 (as ’26 model?)..
H8 2 break it 2 U, but Tesla’s cyber truck was supposed to be out originally 3 years ago. These class 8 EV’s are toys. Ways to keep the wallstreet money flowing. Class 8 EV’s will never be popular. We will develop nuclear powered trucks first.
Your Qs already asked and answered. Transition toward EV vehicle fleet set for 15-20 years. We’re at the beginning.
This is a pie in the sky dream – there is no electrical infrastructure planned to increase the transmission of all the power needed after hours to charge all these “green” vehicles. So we transfer from sending our money to the Middle East (again – thanks Biden), now the money will go to China because they can make batteries for so cheap while the US looks the other way of their human rights violations. This administration is such a cluster- F. They cannot stop making internal combustion engines, not all cars will be able to be 100% electrical – there are too many wide gaps where there is no electricity available – what happens there?
I hope Barra is getting advice from the White House on creating carefully, accurately worded statements for the GM family of customers and prospective customers.
Okay, what industry made this claim? The auto supplier industry. Okay.
Well, by the time those who enter that industry now, will still be selling parts for ICE vehicles when they retire. And those who make all those gazillion parts, will STILL be making those parts when they retire. Incidentally, all those parts will be delivered by electrified Class 8 trucks to get parts to distribution centers which, will load up the electrified box trucks for distribution to local stores.
C’mon, people! The sky isn’t going to be falling around us in 23 years or even 8 years. I’m pretty sure that after the last ICE vehicle’s are sold here, will start the most pampered generation of ICE vehicles that will surpass the current pampered classics.
I need to make a couple of points that might not have been thought of:
1) where and how and what will we be using to make the electricity for these electric cars? According to Environmentalist Kerry (what does he know about the environment) at a news forum told said stated the USA has some more coal plants to be shut down permanently. Mr. Kerry how are going to product electricity for all these electric cars if you are shutting down coal mines? Oh windmills and solar energy? You’re going to rely on that format are you. Suppose something happens to the electrical power like a hurricane, tornado, blizzard or a terrorist attack and it knocks out the grids. How are homes going to have light and heat for keeping warm, providing hot water or providing power for all our ex’s? We should not rely on electric everything! Speak up or your president will do whatever is against intelligent minds. He’s screwing us already with his idiotic policies….that’s why he hasn’t won the office he ran for as he tried three times before and lost the nomination.
Can one of the new green deal experts tell me how much will the global temperatures be reduced?
0! Remember they claim we have done “irreparable damage”, so all their plans are to prevent further damage. Even though we had a year full of wildfires and record home AC bills yet one of the coldest winters in 20 years, and the Midwest saw snow in mid april…..
Why would anyone comment on an automobile story and rant about politics? Get a life.
Amazing what happens to a discussion about EVs on this thread after just a few days. Prognostications by idiotic people about who will win the presidency in 2024? C’mon…
There are some good comments by apparent BEV detractors here, and that’s okay. Those comments stimulated thoughtful responses—we learn from both.
On the topic of a certain deadline to stop manufacturing of ICE vehicles, the detractors are worrying about much of nothing. Manufacturers are big enough and smart enough to plan backwards from whatever date 25-30-35 years from now to TRANSITION their operations to accommodate the goals we set to stall and remedy climate change caused by our activities since the Industrial Age.
Things like education/training/apprenticeships that only a government can organize and fund, is what we’re hearing from POTUS right now. This is what good government does: plan for the future.
The first transition steps to a no-fossil-fuel-based transportation future, is through HEVs and PHEVs as we’ve already seen in cars like the Prius. Eventually, FCEVs and EREVs will come online to address range anxiety of current BEVs.
Lucky GM customers get to watch (or drive) functional BEVs during this 30-year transition period. I feel lucky to be alive and driving my very own Bolt EV right now at beginning of this decade of the 21stC.