Good points, Mark. While long-term estimates suggest EV production costs will be lower than ICE vehicles, the transition period is uncertain and labor costs remain significant. Labor costs are often targeted first because they represent a large portion of overall production costs, adding to the interim uncertainty as new processes are discovered and refined. Ideally, this would result in more accessible pricing, but the path is far from clear.
Additionally, it's crucial to consider the broader economic and social implications, as reducing the workforce can impact local economies and future sales. A balanced approach that weighs these factors may be more sustainable in the long run.
Just a thought: a lot of talk about automation, AI, low labour cost supplier locations, etc, etc.
On the whole it appears, to me at least, when the automotive industry across the Americas & Europe reduces its plant workforce and supply chain workforce in reasonably paid countries it could be argued they may well be cannibalising their own future sales, as less people are in reasonably paid employment and able to afford the industries products, EV, BEV, or not.
The impact of low cost automation et al on the bottom line looks great to shareholders, I'm sure. Perhaps an impact and risk analysis of the goal of a lower volume of well paid employees and their wealth spread of wage spend into their local communities needs a little more thought.
Good points, Mark. While long-term estimates suggest EV production costs will be lower than ICE vehicles, the transition period is uncertain and labor costs remain significant. Labor costs are often targeted first because they represent a large portion of overall production costs, adding to the interim uncertainty as new processes are discovered and refined. Ideally, this would result in more accessible pricing, but the path is far from clear.
Additionally, it's crucial to consider the broader economic and social implications, as reducing the workforce can impact local economies and future sales. A balanced approach that weighs these factors may be more sustainable in the long run.
Just a thought: a lot of talk about automation, AI, low labour cost supplier locations, etc, etc.
On the whole it appears, to me at least, when the automotive industry across the Americas & Europe reduces its plant workforce and supply chain workforce in reasonably paid countries it could be argued they may well be cannibalising their own future sales, as less people are in reasonably paid employment and able to afford the industries products, EV, BEV, or not.
The impact of low cost automation et al on the bottom line looks great to shareholders, I'm sure. Perhaps an impact and risk analysis of the goal of a lower volume of well paid employees and their wealth spread of wage spend into their local communities needs a little more thought.