The Toyota transition to BEV may have unintended consequences on workforce security leading to social and political disdruption.
, will job security be an unintended victim? Electric vehicle production requires a smaller human workforce than internal combustion engine vehicle production. This allows for a greater use of robots and therefore increases profitability. Toyota’s President Akio Toyoda has been a strong advocate for job security when undergoing the change to EVs.
Both Germany and Japan are heavily reliant on their auto industries. The German automakers appear to making a good fist of the transition. It appears that Toyota is facing yet more headwinds as it tries to transition its factories and its workforce. The Toyota transition hinges on retrofitting current plants in Japan and retraining the workforce employed there.towards battery and hence electric vehicle production.
“Japan’s automotive industry is integral to the economy, with 5.5 million workers being employed by Japan’s main 7 automakers. Toyota and other Japanese manufacturers can’t get too attached to their domestic workforce if they want to stay competitive. Our worry is whether or not it is going to be willing to break tradition or attempt to successfully navigate this situation,” says Connor Watts, researcher at Rethink Energy.
Japanese culture is very conservative, and workers often stay with the same company for the whole of their working lives. How will Toyota mange this transition, retaining and retraining where possible? The Toyota transition will also have political consequences and may lead to a greater shakeup of Japanese society than was anticipated.
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