10/30/2023 - WorldOra's Carbon News

Marelli plant closure forewarns painful electric vehicle transition.

Reuters reports - Around 230 workers in Italy's "Motor Valley" have begun striking over the planned closure of their auto parts factory, an early casualty of the European Union's transition towards electric vehicles.

Marelli, owned by U.S. fund KKR (KKR.N), wants to shut the plant in the Emilia Romagna region, which makes internal combustion engine parts for car groups including Stellantis (STLAM.MI), Volkswagen (VOWG_p.DE) and BMW (BMWG.DE). It said the business has become "unsustainable", amid the EU's ban on the sale of new petrol cars from 2035.

The dispute is an example of the conflicting challenges governments will face as industries and economies shift towards greener energy to meet tough climate goals and bolster energy security.

Marelli has put the plan on hold but confirmed it wants to abandon the plant, leaving workers in a limbo. Around 20 couples risk losing their entire family income.

Their stories illustrate how the EV transition is already affecting people's livelihoods, well before buying electric vehicles -- still more expensive than petrol ones -- becomes a realistic option for most consumers around the world.