Rapid electrification of the EU’s fleet of company cars could create 344,000 additional jobs and €18 billion in extra investment in Europe’s economy and automotive industry by 2030, a new study by Transport & Environment (T&E) has suggested.
Even under a so-called ‘moderate’ electrification scenario, an extra 196,000 jobs would be created, it added.
According to the EU’s Clean Corporate Vehicles Regulation, some 45% of new car sales in large corporate fleets need to be electric by 2030, with T&E saying that maintaining this regulation is essential to achieving an effective transition. However the rate at which this occurs depends on a variety of scenarios, such as the availability of financial supports.
Job creation
“Company cars are the quickest way to turn Europe’s EV transition into European jobs,” commented Sofie Grande y Rodriguez, clean fleets policy manager at T&E.
“Lawmakers have the opportunity to make the company cars regulation a key driver of Europe’s automotive competitiveness. Watering down its ‘Made-in-EU’ requirements would remove the incentive for carmakers to localise production. Equally important for securing at-risk jobs is keeping 2028 as the entry-into-force date.”
In a ‘strong’ scenario, where more than 69% of new cars in large corporate fleets are electric by 2030, economic gains could be as much as €48 billion, while additional investment could increase to €38 billion.
Under such a scenario, Germany and Poland would be likely to reap the biggest benefits, with Germany potentially seeing demand for an additional 134,000 jobs, while Poland could gain 38,500 jobs.
The impact would extend beyond vehicle manufacturing to the wider electric vehicle supply chain. In Poland, battery cell production could more than double from 31 GWh to 81 GWh by 2030 under the strong scenario, with 82% of the additional 38,500 jobs concentrated in the battery sector.
Taking on China
According to T&E, the question is no longer about how fast the transition to e-mobility takes place, but how seriously the EU is when it comes to competing with China.
It cites Volkswagen as a case in point – while the carmaker currently plans to cut 35,000 jobs by 2030, implementation of the regulation could generate up to 56,300 additional direct jobs at the automaker over the same timeframe.
“Electrifying the fleets of large companies is key to securing Europe’s EV value chain and reducing our dependence on dominant global suppliers,” said Rodriguez. “Europe already assembles most of its electric company cars. What it needs now is guaranteed demand, so the battery plants announced here actually get built. To stop losing ground to China on EVs, Europe must bet on Made-in-EU electric company cars.” Read more here.
