Sunday, August 14

The automobile, at the crossroads: 70,000 jobs are at risk in the sector

It could not be otherwise: the GANVAM dealer association warns that its sector can destroy up to 70,000 jobs in the medium term, as a consequence of the new times that are coming.

Digitization, which eliminates labor in both the sales and after-sales processes, is one of the reasons for this disaster. The forecast that soon, the car owned will decrease and leave towards a model of carsharing or ‘low cost’ taxis, in which the actual owners of the cars will be mobility operators.

Be careful, the new mobility operators are ‘low cost’, for now. It remains to be seen what they will do when they finally manage to expel the traditional taxi model, which is undoubtedly their goal, and they seek it under the cover of zero-rate financing.

Without forgetting that right now, the auto sector is taking advantage of the pandemic, the chip crisis and logistical problems to liquidate stocks and prepare for the future car, which will no longer have a combustion engine.

Cars with an electric or hydrogen motor have far fewer components than a traditional one, which will impact production plants. If, in turn, they are sold in fleets, loutlets can also suffer greatly.

The employer Ganvam asks for public aid, but even if it were granted, this would only be a patch. The truth is that new times bring these kinds of situations. Technology and globalization erode business models and are, in turn, less efficient than thought in the transversal distribution of income.

Probably more than public aid, which should the Government implement would be tax cuts, and incentives to companies that provide technology, and in turn maintain or even create jobs, beyond subsidizing with public money. With this, it is only possible to lengthen the agony.

Undoubtedly, The automobile is a key sector not only in Spain, but throughout the world. The need for a greener park, supply problems, new usage models and how labor intensive they are, require outreach solutions from operators and politicians. We will have to see where the shots go. Without forgetting the consumer, who right now, if he wants to change cars, is in a kind of labyrinth with no way out.

At the moment, a colossus like Toyota has announced an investment of 30,000 million dollars only in electric cars, with the intention of renewing up to 30 models before 2030. It wants to increase the sale of electric cars at a rate of 3 and a half million annually .

It seems far away, but 203 is just around the corner.

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