Car manufacturers facing electric learning curve, says IMFStaff Writer | August 1, 2017
The automotive industry may need to play catch up in order to cope with the growth in electric vehicles, a report from the International Monetary Fund found.
Auto industry A review of trends in the electric vehicle market
Using the transition in the 20th century from horse-drawn carriages to fuel-powered vehicles as a benchmark to measure progress, the report found that pace suggests motor vehicles could vanish from markets in advanced economies within the next 20 years.
A snapshot from the U.S. Bureau of Labor Statistics finds there are fewer employers working on motor vehicles and parts manufacturing than last year, based on June data.
Average hourly earnings, meanwhile, have recovered since the global recession, but are still, at $21.45 per hour, about 80 cents lower than they were 10 years ago.
The trends may reflect greater automation and the potential impacts of globalization, as automakers shift manufacturing to markets with lower labor costs. For the shift in vehicles themselves, the IMF said retooling may be necessary.
"Electric cars take fewer parts to produce, and require less maintenance than motor vehicles," its report read.
"Therefore, investment in people is critical - whether job training or reskilling programs - to enable workers in both advanced and emerging market economies to work with new technologies, such as self-driving cars and in industries such as battery production." ■