A new analysis from the Fraunhofer Institute for Industrial Engineering projects that up to 726,000 jobs in European automotive production could be lost by 2040.
The research identifies the maintenance of strict internal combustion engine bans as a primary driver of the projected workforce contraction.
The findings highlight the severe structural adjustment required across the continent's manufacturing base.
As regulatory pressure mounts to phase out traditional engines, automakers face a dual challenge of retooling factories and managing significant headcount reductions.
The study suggests that the transition to electric vehicles, while necessary for climate goals, will result in a net loss of production roles due to the lower labor intensity of EV manufacturing compared to internal combustion units.
This macro-level risk aligns with recent corporate developments in Germany.