'The shift to electric cars means a fundamental transformation of what workers will do and how many are needed to do it.'
From the outside looking in, the talks between the United Auto Workers’ striking members and the management of General Motors look like normal disagreements over pay. In reality, they’re really about the future of cars in the U.S.
Electric cars have far fewer parts, which means far fewer people are needed to put them together. When one analyst took apart a Chevrolet Bolt and Volkswagen Golf, he found that the Golf had 125 more moving parts than its electric counterpart. What’s more, the electric vehicles’ parts are often easier to put in place using automated machines.
Take the year 2023, for example. The UAW and GM are negotiating a four-year contract that will expire then. Meanwhile, in Germany this week, the first hearings were held in a class-action lawsuit brought by 450,000 consumers in that country against its largest automaker, Volkswagen, over the diesel emissions scandal. Legal experts believe that the lawsuit, like the UAW’s contract, will also find its resolution in 2023.
Sales of EVs in China in 2018 were higher than the rest of the world combined, and the Chinese government has invested over $60 billion to shape an automotive industry fueled by electricity. In Europe, France and Germany recently announced a partnership to invest nearly $7 billion to develop EV batteries that solve the problem of limited range.
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