Automotive industry: "Climate-friendly structural change is feasible"

The automotive industry in Germany and Europe could be largely converted to alternative drive technologies within 25 years. This is the conclusion reached by the FERI Cognitive Finance Institute in a joint study with the Fraunhofer Institute for Systems and Innovation Research ISI. "The structural change towards climate-friendly drives is feasible, provided that politicians also face up to their responsibility and create clear framework conditions," emphasizes Dr. Heinz-Werner Rapp, founder and director of the FERI Cognitive Finance Institute.

Dissolution of the "car" concept

Under the title "Alternative Mobility", the study analyses the current challenges and prospects for the environment and the automotive industry. In addition to increasing climate and environmental requirements, these primarily include new fuel and drive concepts as well as the effects of digitalization and sharing mobility. "Every single one of these trends fundamentally challenges traditional value chains around the car," says Dr. Heinz-Werner Rapp. "Both production and mobility structures will have to completely reorganize themselves," Rapp continues. "In fact, we are talking about a dissolution of the concept of 'car' as we know it today."

E-mobility indispensable

In view of global climate change, the rapid conversion to CO2-neutral drive systems is without alternative, he said. "The follow-up costs of adapting to higher temperatures and weather extremes would very likely far exceed the costs of adapting our economic system accordingly," explains Dr. Claus Doll, head of the Mobility Business Unit at the Fraunhofer Institute for Systems and Innovation Research ISI. Despite uncertainties, electric drive concepts have a clear advantage over other variants. In view of all the effects, the phasing out of the internal combustion engine is likely to cause significant distortions on the German labor market, but overall no dramatic collapse of labor markets or regional value creation is to be expected for Germany.

Infrastructure as a decisive factor

According to the FERI Cognitive Finance Institute, the mobility of the future will not only depend on the question of which new technologies, energy and drive concepts will prevail or how the effects of climate change will influence mobility and usage behavior overall. The state and local authorities also have a key role to play. High-performance charging networks for batteries and new technologies such as hydrogen or hybrid trolley trucks require new infrastructures. These should be driven forward in a targeted manner by public start-up investments, especially as the amounts required are manageable.

A summary of the most important results and the entire study "Alternative Mobility - Challenges and Prospects for the Environment and the Automotive Industry" can be downloaded here in German.