The intricate dynamics of a traditional car engine are universally recognized and admired. Pistons in constant motion, springs flexing their metallic muscle, spinning shafts, opening and closing valves, and the high-speed dance of interlocked gears; all connected by a transmission - a complex mechanical marvel in its own right. In stark contrast, an electric motor boils down to pretty much some wires wrapped around magnets, requiring only a single-speed transmission. But this elementary design has been a source of concern for the United Auto Workers union as it harbors fears of job losses due to a predicted decrease in labor requirements for EV production.
Per previous estimates, there was a consensus that electric cars, by virtue of bearing lesser parts, require between 30% to 40% less labor to manufacture than their gasoline counterparts. However, experts, such as research analyst Turner Cotterman, argue against the oversimplification of EV production labor requirements. With experience in decoding the issue at Carnegie Mellon University and notoriety as an associate with McKinsey and Company, Cotterman acknowledges the prevalence of misconceptions about EV manufacturing labor- a misunderstanding that prevails largely due to an assumed link between the number of parts and labor required in production.
Erica Fuchs, another labor researcher from Carnegie Mellon notes that rather than prominent cuts, the production of electric vehicle powertrains, accounting for the batteries, electric motors, and power management systems, actually require more labor than the making of engines and transmissions. Their research paper supports similar findings by Boston Consulting Group which shows that the total labor for an electric vehicle is just marginally less than that needed for a gas-fueled vehicle.
Endorsements of these new insights came from both academia and industry. A prime example is GM's executive vice president for manufacturing, Gerald Johnson, who acknowledged on a company video that the future labor need for EV production would closely resemble the current demands of comparable internal combustion engine vehicle production.
A prominent component in EVs that substantially contributes to total labor requirements is the battery pack. Boston Consulting estimates that the labor required to produce battery cells consumes about 8% of the total labor for an entire automobile. This is merely a tad more than labor required for a gasoline engine, confirms Fuchs. Battery production in the US has also been incentivized by offering consumers more credits if they purchase an EV with batteries made domestically.
Given this, several car manufacturers, including giants like Toyota, BMW, and Hyundai, have unveiled battery manufacturing projects in the US. While automation is imbuing modern manufacturing with efficiency, it still leaves room for humans to manage equipment, conduct quality checks, maintain machinery, oversee on-site product engineering, and manage supply chains, added Nathan Niese, global topic leader for electric vehicles at Boston Consulting. This need for human input is evidenced by Ford's plan to employ 2,500 people at its recently paused battery plant construction site in Michigan.
While the UAW has chosen to keep its plan to unionize battery plants under wraps, several other carmakers are endeavoring to establish their footprint in this promising sector.
In addition, many components of an EV, such as the high-voltage wiring systems, cooling systems for battery, lightweight materials for vehicles, require more hands-on work. Boston Consulting also highlighted that, despite traditionally needing fewer supplier parts, the final assembly stage of an EV might actually demand more labor than a conventional vehicle.
According to Niese, the century-old streamline of gasoline vehicle production processes would likely be replicated in the EV world, eventually ensuring improved efficiency and minimized redundancy. Yet, as we stand today, the EV revolution is just getting started, with evolved labor needs paving the way for a redefined automotive industry.
