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19 07 2017 01

In Germany, legislation banning permits for new cars and light trucks with internal combustion engines as of 2030 is currently under consideration. A new study by the ifo Institute projects that such a ban could lead to significant losses in terms of jobs and added value in Germany. More than 600,000 jobs, or 10%, of jobs in German in manufacturing would currently be directly or indirectly affected by a ban. In the automotive industry alone a ban would endanger 436,000 jobs, while up to 130,000 jobs at small and medium-sized companies would be at risk.

Such a ban would also impact a total of 13% (amounting to around €48 billion) of gross value added. The study was commissioned by the German Association of the Automotive Industry (VDA).

The study, “Effects of a prohibition on the registration of passenger cars and light commercial vehicles with an internal combustion engine” (full study in German only), first explores the potential negative consequences and risks of such a ban in terms of performance and employment in German manufacturing. This is followed by an analysis of innovation efforts in manufacturing in the field of combustion engines and alternative technologies and then a review of the environmental impact of a ban.

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