Lost Jobs and New Paths in EV Era

What happens to traditional carmakers and their workers as electric vehicles take over the roads?

The shift from internal combustion engines to electric powertrains

For over a century, the internal combustion engine (ICE) has powered the automotive industry, anchoring economies and job markets worldwide. Now, electric vehicles (EVs) are accelerating a seismic shift away from this long-standing technology. Instead of gasoline or diesel engines, EVs run on electric motors powered by batteries, fundamentally changing how cars are built and maintained.

This transition isn’t just about swapping engines; it’s about rewriting the entire automotive playbook. Electric powertrains have fewer moving parts, require less maintenance, and are assembled using different techniques. Traditional automakers face pressure to innovate rapidly or risk losing ground to EV specialists and startups.

How electric cars are reshaping manufacturing processes

Manufacturing an electric car differs significantly from producing an ICE vehicle. The engine, transmission, exhaust systems, and fuel tanks—complex components with numerous parts—are replaced by a simpler electric motor and a large battery pack.

This simplification leads to fewer parts overall. For example, an average gasoline car engine has about 2,000 moving parts, while an electric motor has fewer than 20. This reduction affects the entire supply chain, from parts suppliers to assembly lines.

Assembly plants designed for ICE vehicles often require costly retooling to handle battery pack installation and electric drivetrains. Robotics and automation become more prominent, especially in battery manufacturing, which demands precise handling and quality control.

Implications for employment in automotive sectors

The shift to EVs carries significant consequences for jobs in the automotive sector. On one hand, electric cars require fewer labor hours to assemble due to their simpler design. On the other, new skills are needed for battery production, software development, and electric powertrain assembly.

Traditional manufacturing jobs tied to engine assembly, exhaust systems, and fuel injection are declining. Workers specialized in these areas face retraining or displacement. Meanwhile, opportunities grow in battery chemistry, electric motor design, and vehicle software engineering.

Unionized auto plants, especially in regions heavily dependent on ICE manufacturing, confront tough choices. They must negotiate transitions that protect workers while embracing new technologies, or risk job losses and economic decline.

Job market shifts in numbers

• Studies estimate that EVs require 30-50% fewer labor hours to produce than ICE vehicles.
• Battery manufacturing and EV maintenance are projected to create millions of new jobs worldwide, but not necessarily in the same locations or industries.
• Traditional parts suppliers may see up to 70% of their product portfolio become obsolete as EV adoption rises.

Opportunities and challenges for suppliers and dealerships

Suppliers that once thrived on producing engine components, transmissions, and exhaust systems face existential threats. Many must pivot quickly to producing batteries, electric motors, wiring harnesses, and power electronics. This shift requires significant investment in research, new equipment, and workforce training.

For dealerships, the transition is equally disruptive. Electric vehicles typically require less frequent maintenance—no oil changes, fewer brake jobs, and fewer moving parts to service. This means fewer service visits and reduced revenue streams from traditional aftermarket services.

On the flip side, dealerships can capitalize on EV incentives, provide charging infrastructure, and expand into software updates and battery health monitoring services. They also have a chance to become centers for educating customers about EV technology, a key factor in accelerating adoption.

Key challenges for suppliers and dealerships

1. Reinventing product lines: Suppliers must develop new components suited for EVs or risk obsolescence.
2. Workforce retraining: Employees need new skills in electronics, software, and battery technology.
3. Adapting sales and service models: Dealerships must rethink customer engagement and service offerings to stay relevant.
4. Capital investment: Both suppliers and dealerships face high upfront costs to modernize operations for EVs.

The rise of electric cars is not just an environmental or technological story—it’s an economic upheaval reshaping industries and labor markets. Traditional automotive players that fail to adapt risk falling behind, while those that embrace change may unlock new growth and job opportunities in a rapidly evolving landscape.