Problem

Volkswagen's transition to electric automobiles threatens the employment of hundreds of thousands in Germany's automotive industry, which employs 5 percent of all jobs, including 830,000 directly and 1.3 million indirectly. Earlier estimates predicted the loss of 35%-62% of the jobs in the German auto industry by 2030 from the net-zero transition. This is due to electric power trains requiring less labor to assemble compared with internal combustion engines. In addition, the shift to electric mobility demands workers with specialised skills in digitalisation and low-carbon technologies, further intensifying the challenges faced by the existing workforce

Responses

To manage the transition, Volkswagen has reportedly implemented various training programs for its workers. In 2019, the company launched the "Faculty 73" program, a two-year training initiative for software developers in the auto sector, with successful students guaranteed permanent positions. The company reports it has retrained 7,700 employees at the Zwickau plant between 2019 and 2021, including 3,000 workers trained in basic e-mobility skills, 160 employees in high-voltage specialisation, and 3,500 workers in product-specific training. Apart from this, EUR 1.2 billion was invested to convert the Zwickau plant into an EV production facility. Volkswagen collaborated with around 90 training partners, including Siemens and Kuka, to enhance training capabilities. These efforts aim to minimise job losses and equip workers with skills needed for the growing EV market.

Find out more: International Energy Agency