For two reasons—the first relating to the inability of electric cars to achieve expected sales, and the second being a decrease in their income due to the slowdown in sales of traditional cars—the massive shift in Europe toward electric cars caused an existential crisis for auto parts suppliers, especially for cars that run on internal combustion engines.
According to a Reuters report, Evtec Aluminum, which owns two manufacturers in the United Kingdom and is the primary supplier of Jaguar spare parts, has recently experienced significant losses as a result of the European Union’s ban on gasoline-powered vehicles in the wake of the Volkswagen crisis, or “Dislett.”
After a group of investors led by David Roberts, who thinks that investing in electric car parts is the only way out, EVTEC still managed to survive. According to Roberts, investing in aluminium for his new company would bring in millions of dollars due to the fact that it would draw electrical auto manufacturers given the dearth of those who supply this particular resource.
On the other hand, the German company Vitesco Technologies Group is looking to shift from working to supply the movement transmission group to internal combustion engines to electric vehicles, and expects to represent 70% of the car market by 2030, and in order to achieve that end it will divide its work into two parts, one of the components of electric cars The other high-value technology can be used to combustion engines and increase profits in a sector that is in decline.
Electric vehicles also pose a threat to jobs because they rely on only one-third of the components used in internal combustion engines. This decrease in demand for labour is demonstrated by the desire of various companies to reduce employment as much as possible, with France cutting its workforce for the production of electric motors from 3,000 to just 2,400 and aiming to cut it even more in the near future.
It is important to note that the United Kingdom is among the European Union nations moving the fastest toward a 2035 ban on the sale of vehicles with internal combustion engines.
“A bleak future” for European suppliers of car components and factories
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