Austrian Chancellor Karl Nehammer Addresses Automotive Crisis in Styria Ahead of EU Election

Austrian Chancellor Karl Nehammer is set to convene an auto summit at the Chancellery on Monday, focusing on the crisis-hit automotive cluster in Styria. This event comes at a pivotal time, with the EU election on the horizon.

The automotive industry, a significant contributor to Europe's greenhouse gas emissions, accounting for 29% of the bloc's total emissions, is under scrutiny. The transition to electric vehicles is seen as a potential solution to reduce these emissions.

Why this matters: The auto summit's decisions could have significant implications for Austria's automotive industry and the environment, affecting not only the country's economy but also its contribution to Europe's greenhouse gas emissions. The outcomes of the summit may influence the EU's stance on environmental policies and the transition to electric vehicles, shaping the future of the automotive sector.

A recent study by the European Association of Electrical Contractors (AIE) suggests that the shift to electric cars could create more than twice as many new jobs as those lost as a result of the decline of the internal combustion engine. By 2030, nearly 200,000 permanent jobs are expected to be created, with 57% of these in the installation, operation, and maintenance of charging points.

Giorgia Concas, AIE's secretary-general, stated, "The shift to electric cars will create 200,000 new jobs, the majority for electrical contractors across Europe. Over 90% of electrical contracting companies are small and medium-sized enterprises. Electromobility is therefore a massive business opportunity for local companies to generate local, green, highly skilled jobs."

The AIE study, titled 'Powering a new value chain in the automotive sector: the job potential of transport electrification,' calculates the number of jobs created against those lost from the move away from petrol and diesel engines. The findings are based on a moderate uptake of plug-in vehicles, amounting to around 35% of new car sales by 2030.

Greg Archer, T&E clean cars director, emphasized the importance of political action, saying, "Politicians should take note of this study, not just for what it says about the benefits of e-vehicles, but as a warning not to trust traditional industries that say they can't tackle environmental issues without putting large numbers of people out of work. It's normally an excuse for a failure to take action."

However, a separate study by Germany's Fraunhofer research institute presents a more nuanced scenario. It estimates that 306,000 jobs in the automotive manufacturing sector will be lost by 2030, but only 27% of these losses are specifically attributed to the rise in electromobility.

The upcoming auto summit at the Chancellery will likely address these complex dynamics, balancing the need for environmental sustainability with economic stability. With the EU election approaching, the decisions made at this summit could have significant political and economic implications.

To recap, the auto summit convened by Chancellor Karl Nehammer aims to tackle the challenges facing the automotive cluster in Styria. With the potential for significant job creation in the electric vehicle sector, the summit's outcomes could shape the future of Austria's automotive industry and its environmental impact.

Key Takeaways

• Austrian Chancellor Karl Nehammer to convene auto summit to address crisis-hit automotive cluster in Styria.
• Auto industry accounts for 29% of EU's greenhouse gas emissions, with electric vehicles seen as a solution.
• Shift to electric cars could create 200,000 new jobs in Europe by 2030, mostly in charging point installation.
• Study finds 306,000 jobs in automotive manufacturing sector will be lost by 2030, but only 27% due to electromobility.
• Auto summit's decisions could shape Austria's automotive industry, environmental impact, and EU's stance on environmental policies.