{"id":9798,"date":"2021-09-30T08:28:42","date_gmt":"2021-09-30T15:28:42","guid":{"rendered":"https:\/\/www.qad.com\/blog\/?p=9798"},"modified":"2025-04-16T11:49:28","modified_gmt":"2025-04-16T18:49:28","slug":"lets-talk-about-automotive-jobs-and-electric-vehicles","status":"publish","type":"post","link":"https:\/\/www.qad.com\/blog\/2021\/09\/lets-talk-about-automotive-jobs-and-electric-vehicles","title":{"rendered":"Let\u2019s Talk About Automotive Jobs and Electric Vehicles"},"content":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;9799&#8243; img_size=&#8221;full&#8221;][vc_column_text]<span style=\"font-weight: 400;\">It\u2019s a sensitive topic. As automakers in the US and across the globe move to electric vehicles over internal combustion engine (ICE) vehicles to meet climate crisis priorities, lower emissions, and reduce dependence on oil, a hard reckoning is on the horizon \u2013 the production and assembly of electric vehicles requires fewer workers than currently required for ICE vehicles.<\/span>[\/vc_column_text][vc_column_text]<\/p>\n<div class=\"wistia_responsive_padding\" style=\"padding: 33.33% 0 0 0; position: relative;\">\n<div class=\"wistia_responsive_wrapper\" style=\"height: 100%; left: 0; position: absolute; top: 0; width: 100%;\"><iframe loading=\"lazy\" class=\"wistia_embed\" src=\"\/\/fast.wistia.net\/embed\/iframe\/zmdyf740vg?videoFoam=true\" name=\"wistia_embed\" width=\"100%\" height=\"100%\" frameborder=\"0\" scrolling=\"no\" allowfullscreen=\"allowfullscreen\"><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">\ufeff<\/span><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">\ufeff<\/span><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">\ufeff<\/span><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">\ufeff<\/span><\/iframe><\/div>\n<\/div>\n<p><script><\/script>[\/vc_column_text][vc_column_text]<span style=\"font-weight: 400;\">The industry needs to have that open conversation about automaker jobs \u2013 now, so says QAD\u2019s Vice President, Automotive and Mobility, Tom Roberts in his recent article, \u201c<\/span><a target=\"_blank\" href=\"https:\/\/www.embeddedcomputing.com\/application\/automotive\/electric-vehicles-powertrain\/an-honest-conversation-about-jobs-and-chips\" rel=\"noopener\"><span style=\"font-weight: 400;\">An Honest Conversation, About Jobs and Chips<\/span><\/a><span style=\"font-weight: 400;\">\u201d in <\/span><i><span style=\"font-weight: 400;\">Embedded Computing Design<\/span><\/i><span style=\"font-weight: 400;\"> magazine.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Roberts echoes<\/span><a target=\"_blank\" href=\"https:\/\/www.reuters.com\/business\/autos-transportation\/daimler-ceo-we-need-an-honest-conversation-about-evs-jobs-2021-05-11\/\" rel=\"noopener\"> <span style=\"font-weight: 400;\">comments<\/span><\/a><span style=\"font-weight: 400;\"> from <\/span><span style=\"font-weight: 400;\">Daimler CEO<\/span> <span style=\"font-weight: 400;\">Ola K\u00e4llenius, in May of 2021, \u201cWe have to have an honest conversation about jobs. Everyone knows it takes more labor hours to assemble and build a combustion-based powertrain compared to an electric powertrain.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Automakers in Germany foresee a loss of 75,000 jobs building engines and transmissions by 2030. In the US, an all-electrified fleet could mean the<\/span><a target=\"_blank\" href=\"https:\/\/www.detroitnews.com\/story\/business\/autos\/2021\/04\/27\/suppliers-group-urges-slow-shift-electric-autos-cites-job-concerns\/4860450001\/\" rel=\"noopener\"> <span style=\"font-weight: 400;\">loss of 30% or more supplier jobs<\/span><\/a><span style=\"font-weight: 400;\">, according to Motor &amp; Equipment Manufacturers Association, Senior Vice President of Government Affairs, Ann Wilson.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The number of job losses and economic consequences could be catastrophic if the stakeholders do not start immediately with a plan to retrain and deploy workers to produce electric vehicles, and their batteries, chips and related assemblies. The conversation among OEMs, tiers, unions and governments must focus on ways to save jobs while transitioning to electrified vehicles that also allows for value creation and profitability.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">The Automotive Labor Pool<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Automotive manufacturers looking at retraining, retaining and redeploying their workforce will require strategic planning and an honest understanding of the staffing requirements for the production of electric vehicles. Planning now to develop strategies and implement technologies to expedite onboarding and training\/retraining is a must.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Deploying workers in the most efficient way during the transition from ICE vehicles to EVs will require strategic planning. For example, certain engine plants will still be needed for legacy ICE vehicles while other plants\/production and assembly facilities will need to be retooled for battery, chip and related accessories production.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Vertical Integration of the Supply Chain<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In addition to restructuring the automotive labor pool, manufacturers need to look at the condition of the supply chain. The future success of electric vehicle production depends heavily on controlling and integrating a vertical automotive supply chain, particularly in battery and chip production.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A resilient and<\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2021\/06\/integrated-supplier-management-plan-execute-and-adapt\" rel=\"noopener\"> <span style=\"font-weight: 400;\">integrated supply chain<\/span><\/a><span style=\"font-weight: 400;\"> involves planning, execution and adapting to disruptions. Among many critical steps, manufacturers need to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Maintain the flow of <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2019\/12\/real-time-information-increasingly-important-for-manufacturers\" rel=\"noopener\"><span style=\"font-weight: 400;\">real-time demand and supply data<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Automate customer processes with global trade software and utilize free trade agreements to streamline and automate global trade operations.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Leverage digital technology and insights with suppliers with end-to-end connectivity, real-time tracking and predictive analytics.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Improve supplier development by creating <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2020\/11\/a-connected-supply-chain-is-essential-in-todays-environment\" rel=\"noopener\"><span style=\"font-weight: 400;\">collaborative relationships with suppliers<\/span><\/a><span style=\"font-weight: 400;\"> and standardizing communications, quality and responsiveness.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Manufacturers can assess their<\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2018\/12\/metrics-matter-supply-chain-effectiveness\" rel=\"noopener\"> <span style=\"font-weight: 400;\">supply chain efficiency<\/span><\/a><span style=\"font-weight: 400;\"> and agility with QAD\u2019s<\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/integrated-supplier-management-diagnostic\" rel=\"noopener\"> <span style=\"font-weight: 400;\">Integrated Supplier Management diagnostic<\/span><\/a><span style=\"font-weight: 400;\"> tool. The tool assesses and ranks a company\u2019s supplier management maturity and gauges business adaptability, particularly its strengths and weaknesses in supplier disruption.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As we describe in our recent ebook, \u201c<\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/industries\/automotive\" rel=\"noopener\"><span style=\"font-weight: 400;\">Profitable Auto Supply in an Autonomous Connected Electric Shared (ACES) World<\/span><\/a><span style=\"font-weight: 400;\">,\u201d companies that invest in R&amp;D and technologies will withstand the coming transformation in the way vehicles are designed, produced, sold and driven over the coming years.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The time is now for the automotive industry to have an honest conversation about the industry\u2019s future, with a focus on automotive jobs. Check out the <\/span><a target=\"_blank\" href=\"https:\/\/www.embeddedcomputing.com\/application\/automotive\/electric-vehicles-powertrain\/an-honest-conversation-about-jobs-and-chips\" rel=\"noopener\"><span style=\"font-weight: 400;\">full article<\/span><\/a><span style=\"font-weight: 400;\"> in <\/span><i><span style=\"font-weight: 400;\">Embedded Computing Design <\/span><\/i><span style=\"font-weight: 400;\">magazine.<\/span>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;9799&#8243; img_size=&#8221;full&#8221;][vc_column_text]It\u2019s a sensitive topic. As automakers in the US and across the globe move to electric vehicles over internal combustion engine (ICE) vehicles to meet climate crisis priorities, lower emissions, and reduce dependence on oil, a hard reckoning is on the horizon \u2013 the production and assembly of electric vehicles requires fewer workers [&hellip;]<\/p>\n","protected":false},"author":56,"featured_media":9799,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[182,199],"tags":[988,7,1839,237,990,620,1333,1755,991,92],"class_list":["post-9798","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-manufacturing-trends","tag-aces","tag-automotive","tag-automotive-jobs","tag-autonomous-vehicles","tag-connected-vehicles","tag-electric-vehicles","tag-integrated-supplier-management","tag-integrated-supply-chain","tag-shared-vehicles","tag-supply-chain"],"yoast_head":"<!-- This site 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