Car part firms warn fixation on electric cars will cost EU jobs

A fixation on electric cars risks damaging Europe’s auto supplies industry and handing jobs to China, the region’s car parts manufacturers warned at the Frankfurt motor show.

Suppliers, which say they provide around 5 million European jobs, want carmakers and politicians to look at other ways of cutting vehicle emissions too, such as more efficient combustion engines and synthetic fuels.

Roberto Vavassori, president of European Association of Automotive Suppliers (CLEPA) warned a headlong rush to electric cars would hand business to China, which along with South Korea and Japan dominate battery production for such vehicles.

“We need to provide a sensible transition period that doesn’t give unwanted gifts to our Chinese friends,” he said, estimating European automakers were paying €4,000 to €7,000 to China for batteries for every electric car produced in Europe.

Following Volkswagen’s diesel emissions scandal and big improvements in battery technology, many European carmakers are investing heavily in electric vehicles.

They are being encouraged by several governments, with Britain and France both recently announcing plans to eventually phase out combustion engines to try to cut pollution.

Daimler and Volkswagen both announced plans on the eve of the Frankfurt show to accelerate their shift to electric cars. The EU car industry lobby offered to further cut CO2 emissions, albeit over a lengthy period and dependent on uptake of electric cars.

The manufacturers also, however, pointed to huge disruptions for both themselves and the supply chain.

Daimler, for example, said it was seeking billions in savings to help fund the transition, while VW said it would tender for partners to provide battery cells and related technology worth more than €50bn.

With European investment in battery technology lagging far behind China, many EU suppliers want the car industry to keep its options open.

“The problem is the one-dimensional nature of the debate,” said Volkmar Denner, chief executive of Germany’s Robert Bosch, the world’s biggest auto supplier. He said Bosch was optimising the combustion engine and also exploring synthetic fuels, which would have the advantage of being able to use existing filling stations and engines.