December 8, 2022

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The sale of internal combustion cars is prohibited.  There will be problems for auto parts producers

The sale of internal combustion cars is prohibited. There will be problems for auto parts producers

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Car manufacturers don’t care what they’re going to put on their factory assembly lines. However, this is a huge problem for parts manufacturers. There are about a third fewer in the electric car, says Interia Tomasz BÄ™ben, managing director of the Association of Auto Parts Distributors and Producers.

Today, Poland is considered a producing region for auto parts, and these factories largely rely on internal combustion engine technology. Tabla indicates that a large number of companies will lose the market.

The auto revolution will lead to layoffs and closures of some companies. This is confirmed by research that about 52 thousand will be at risk. Jobs in Poland. Many jobs depend on driving technology alone. They will not be fully compensated by the development of electromobility. New jobs will be created, but not at the same time, not in the same number and not in the same place, the SDCM representative informs.

Last week at the European Parliament in Strasbourg, MEPs approved the date proposed by the European Commission to end sales of combustion cars and vans in 2035. Voting does not close the topic. Now the debate will begin between the European Commission, the European Parliament and the Council of the European Union as part of the so-called tripartite.

– Of course, we do not expect a revolution, but we assume that this trend will continue. Pepin says it looks like the issue discussed will be resolved quickly, but he does not hide his concerns about the effects of this type of regulation on the sector.

– Someone might say that there is still a long time until 2035, besides, there will still be a secondary market. Yes, the used car market will remain, but it will shrink. In contrast, adjusting the bets to the new reality will not be easy. Huge global corporations have a different approach to transformation. They have sufficient financial and human resources to consider diversifying their offerings. However, smaller companies operating for example in Poland, two years after the epidemic and the outbreak of war in Ukraine, already have limited amounts of investment, explains the director of the SDCM.

Read also: New taxes on internal combustion cars. Will the Poles not be able to buy cars?

He emphasizes that parts manufacturers are not against electric mobility, they are trying to actively participate in the transformation. However, in his opinion, betting on one technique seems wrong. The competitiveness of the market will decrease, and drivers will be deprived of the possibility of choice. – You also have to remember that there is not enough infrastructure when it comes to charging stations. Poland in particular has a large number of backlogs here. Pepin also stresses that the transport network is not prepared for such changes.

It also draws attention to the cost of buying an electric car. Currently, the cost of a new internal combustion car is about 150,000. PLN, electric cars are more expensive. Few people can afford to buy new cars, because the profits of the Poles are less than the profits of Western Europeans. Most Polish drivers can afford a car from 20 to 25 thousand. zloty. There is also no hope that a tax on internal combustion cars (these provisions are included in the KPO) will encourage the Poles to buy new electric cars.

Poppin asserts that millions of Poles are excluded in terms of communication. The Jagiellonian Club estimated in its study that as many as 13.8 million citizens rely solely on their own transportation. Moving away from internal combustion vehicles at a relatively rapid pace could exacerbate this problem. – I’m afraid that in a few years we will reach the point where we will find that betting on just one technology that still has many weaknesses (such as raw materials for battery production) was just a mistake – it stacks up.

The Association of Auto Parts Distributors and Producers represents 164 of the largest players in the industry and the auto parts market, generates sales of approximately PLN 140 billion annually, creating more than 330 thousand jobs. Careers.

Read more: Banning the registration of internal combustion vehicles, but not all

The European Association of Automobile Manufacturers has also reported that a decision now to ban the sale of combustion cars from 2035 may be a mistake. Taking into account the uncertainty in the markets, making decisions over a period of more than a decade is risky. Representatives of this organization are wondering whether the charging infrastructure will be sufficiently developed by that time, and whether raw materials for the production of batteries in the right quantity will be available.

Given the volatility and uncertainty that we experience around the world overnight, any long-term regulation beyond this decade is premature at this point. Instead, a transparent midway review is needed to set targets for the post-2030 period, said Oliver Zipse, ACEA President and CEO, BMW.

On the other hand, environmental organizations are positive about these plans. Ravi Bagchuk of the Foundation for the Promotion of Electric Vehicles emphasizes that the introduction of ending the sale of combustion vehicles from 2035 presents an opportunity to halt climate change. It is also an opportunity for independence from oil and extortion from oil exporters. Adopting an end date also gives the auto industry predictability, which is essential to making bold investment decisions in electric mobility, which, in turn, will lead to a decline in electric vehicle prices – assesses Bagchuk.

Monica Borkoska

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