The unsurprising answer to the question the automotive industry has been avoiding

Enrique Dans
Enrique Dans
Published in
2 min readApr 22, 2024

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IMAGE: An illustration of an internal combustion engine and an electric motor side by side, showcasing the detailed contrast between their structures and technologies. This visualization highlights the differences in complexity and design, emphasizing the evolution of automotive engineering

A very good article in The New York Times, “What happened when a German car factory went all electric”, is about a Volkswagen plant in Zwickau, Saxony, which employs more than 10,000 people and creates tens of thousands of indirect jobs, that went over to the exclusive manufacture of electric vehicles (EVs).

This is a process German news site Der Spiegel calls “the existential crisis of the German car industry”, one that is also being experienced in other places dependent on the auto industry such, as Ohio. Many analysts predicted huge layoffs and the collapse of local economies when plants went electric, but the reality has been that nothing really changed.

What exactly does nothing mean? Well, basically, even if many jobs change, along with technology and assembly lines, the automotive industry is reasonably good at re-skilling its staff, and can adapt, as happened in Germany, with no layoffs of full-time employees until 2030. No surge in unemployment, no bankruptcies of ancillary companies, nothing; simply a response to the rapidly changing times, as consumers turn away from petrol and diesel to Teslas, BYD, SAIC and other Chinese EVs.

The legacy automotive industry has actively lobbied against EVs, desperately trying to resist a trend that shows no

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Enrique Dans
Enrique Dans

Professor of Innovation at IE Business School and blogger (in English here and in Spanish at enriquedans.com)