Contrary to earlier predictions, U.S. auto plants transitioning to electric vehicle (EV) production have increased their workforce, according to research from the University of Michigan. Initial forecasts suggested EV manufacturing would result in job cuts, with expectations of a 30-40% reduction, translating to a loss of over 200,000 jobs due to EVs requiring fewer parts compared to traditional internal combustion engine (ICE) vehicles.
However, the study, published in *Nature Communications*, found that some EV plants have seen assembly jobs increase by up to 10 times during the ramp-up stages of production. Even a decade into EV production, one plant still required three times more workers per vehicle than before.
Several factors contribute to this increase in workforce, including: – Investments in new manufacturing technologies requiring additional labor for refinement. – Increased vehicle complexity, especially in premium EVs with advanced features. – Vertical integration, where companies consolidate workers in a single location to reduce outsourcing costs.
The research team examined data from three auto plants that transitioned fully from ICE to EV production: Tesla’s Fremont factory, Rivian’s plant in Illinois, and GM’s facility in Michigan. Over two decades of census and production data showed that assembly worker numbers consistently grew in these plants, challenging the widespread expectation of job losses.
While the increase in assembly jobs is clear, the study notes that the impact on parts manufacturing jobs remains uncertain and will depend largely on where battery cell production is located. Tesla’s Fremont plant, the longest-running EV factory, shows that labor efficiency improves over time but can take up to 15 years to reach the same efficiency levels as ICE plants.
