The disruptive autonomous electric vehicle

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GM’s U.S. hourly workers staged a 40-day-long strike this fall but managed to coax the company into keeping open only one of the four American factories the automaker plans to close. [2]

Due to the shift to electric and autonomous vehicles, the car industry is cutting tens of thousands of jobs because of restructuring measures and the decreasing demand for vehicles [2]. Building electric motors requires about 40% less labor, and Ford stated that it also required 50% less factory floor space [1]. These developments create fear amongst automotive employees of losing their jobs. This resulted in a 40-day strike by GM’s U.S. hourly workers, because the company was planning to close 4 factories [2]. Besides electric vehicles in general, the autonomous vehicle development causes a major disruption in the automotive industry. The future is about mobility as a service and the Chief commercial Officer at 2getthere argued that private car ownership will disappear as a result of sharing vehicles [3]. This would decrease the demand for new cars.

If you want to read more about these disruptive developments, read the articles below.

[1] Dawson, C., Naughton K., Coppola, G. (September 2019). ‘They Don’t Need Us Anymore’: Auto Workers Fear Electric Unrest. Yahoo finance.

[2] Rauwald C., Welch, D., Kotoky, A. (December 2019). Automakers are cutting 80,000 jobs globally as EV shift upends industry. Automotive News Europe.

[3] Messe Berling GmbH. (September 2019). Shift 2019 – the Future of Mobility: Autonomous carswill disrupt an industry that’s so large, it could be the world’s 6th largest economy. IFA Consumer electronic unlimited.