Written By: Erin Taylor
Since the introduction of the assembly line in 1913, Michigan’s economy has been heavily tied to the auto industry. From the rise of mass production to the dominance of internal combustion engine (ICE) vehicles, automotive manufacturing has served as a major source of employment and economic growth in the state. According to MichAuto (2024), in 2022, Michigan’s auto industry generated $348 billion and supported approximately 1.2 million jobs, accounting for about 20% of Michigan’s workforce. In recent years, the industry has been rapidly changing with technological advances and consumer preferences shifting toward Electric Vehicles (EVs) to reduce carbon footprints. In Michigan, year-to-date EV registrations in Q3 accounted for 10.1% of total vehicle sales, marking the largest increase in the United States (Laing, 2026). While this shift has proved positive in terms of environmental effects and new technological opportunities, it raises questions about the workforce. In particular, does this growth in EVs have a net positive impact on the industry?
The answer is not that simple. It largely depends on how “net positive” is defined. If the focus is on total job growth, EV investment could lead to long-term employment growth. However, if “net positive” is defined as improved wages and working conditions of these jobs, then some would argue the impact is far less certain. Taken together, evidence suggests that the EV transition may create more jobs overall, but these jobs could differ in working conditions, wages, benefits, and union representation.
One effect of the transition to EVs is reduced demand for certain traditional auto manufacturing jobs, as electric vehicles are mechanically simpler than gasoline-powered cars. Unlike internal combustion engine (ICE) cars, EVs do not require complex systems such as engines, fuel systems, transmissions, or exhaust components, meaning they use far fewer moving parts and thus have simpler manufacturing processes (“The Difference Between EV and ICE Manufacturing,” n.d.). Many auto workers currently specialize in producing parts such as pistons, fuel pumps, engine blocks, and exhaust systems, so demand for these roles may decline as EVs replace gasoline-powered vehicles (Harp & Prasad, 2024). According to the Michigan Department of Labor and Economic Opportunity (2024), roughly 45,000 Michigan workers currently produce components related to internal combustion engines, and about 11,500 jobs tied to those technologies are likely to decline in the coming decades. In addition, EVs generally need less maintenance—fewer fluid changes and mechanical repairs—which could reduce demand for certain automotive repair jobs over time as well (“Global EV Outlook 2025”, 2025).
At the same time, EV investment is creating new opportunities in emerging sectors. Michigan has been one of the leading states for automotive investments in the United States, with $41.5 billion invested from 2009-2019 (“Michigan EV Ecosystem,” n.d.). More recently, the state has attracted $26.2 billion in private EV-related investment and $245 million in federal funding, helping create approximately 25,000 jobs (Clean Economy Tracker, n.d.). Many of these new roles are concentrated in industries that did not previously play a major role in the automotive supply chain, such as lithium-ion battery manufacturing, semiconductor production, and EV charging infrastructure.
Since EVs rely heavily on battery technology and advanced electronics, the transition may stimulate entirely new areas of manufacturing within Michigan’s economy, increasing labor demand in those areas. The World Resources Institute (WRI) found that because battery assembly is often labor-intensive, the workforce will expand as more people are required to produce each part. With this information, they indicate that the EV transition could generate substantial long-term employment growth in the automotive sector, generating up to 56,000 additional auto industry jobs by 2030 (“A Roadmap for Michigan’s EV Future,” 2023).
Furthermore, building charging infrastructure will require electricians, construction workers, planners, and software specialists. It is estimated that about 7,500 jobs in Michigan could be supported by EV charging infrastructure by 2040, with roughly half in electrical installation and maintenance and others in construction, software, planning, and manufacturing (Jaegar, et. al., 2023). Meeting future demand will require millions of chargers across the U.S., which could support domestic manufacturing jobs.
However, the benefits of new job creation may not fully replace the characteristics of traditional auto employment. Many existing automotive jobs are unionized through the United Auto Workers (UAW) and offer relatively high wages and benefits. New EV-related positions—particularly at battery plants—often pay less and may not always be unionized. Union assembly workers in traditional auto manufacturing earn roughly $32.32 per hour on average, while battery plant jobs average closer to $16.50 to $20 per hour (Isidore, 2023). This wage gap has raised concerns among labor advocates that the transition could shift workers from higher-paying union jobs into lower-paying or less stable positions. In addition, the transition itself can cause short-term disruptions. For example, 1,700 workers were laid off in October of 2025 at General Motors’ (GM) plants in Michigan and Ohio during EV production changes (Neelakandan, 2025). While job creation may occur at the same time as layoffs, the transition involves temporary job losses before long-term gains.
Overall, the evidence suggests that EV investment is likely to create significant employment opportunities in Michigan, particularly in new sectors such as battery manufacturing and charging infrastructure. Some projections estimate that clean energy industries could support up to 167,000 jobs in the state over the next decade (Clean Energy Industry, n.d.). However, these jobs may differ from traditional auto manufacturing positions in wages, union representation, and required skills. As a result, the economic impact of EV investment will depend largely on how successfully Michigan manages the transition, particularly through worker retraining, labor protections, and policies that help existing auto workers move into emerging EV industries.
Ultimately, EV investment can reshape the structure of the automotive workforce. While the transition may generate new employment opportunities, ensuring that these jobs maintain the wages, stability, and benefits historically associated with Michigan’s auto industry will be critical for determining whether the shift is truly beneficial for workers.
References
Clean Economy Tracker. (n.d.). Clean Economy Tracker. https://cleaneconomytracker.org/
Community & Worker Economic Transition Office. (2025). Michigan.gov. https://www.michigan.gov/leo/bureaus-agencies/economic-transition
Economic Contribution of the U.S. Automotive Industry. (2024). Center for Automotive Research. https://www.cargroup.org/publication/economic-contribution-us-auto-industry/
Electric Vehicle Ecosystem | Michigan Business. (n.d.). Michigan Economic Development Corporation (MEDC). https://www.michiganbusiness.org/mobility/evecosystem/
Harp, T., & Prasad, K. (July 2024). Economic Contribution of the U.S. Automotive Industry. An Economic Contribution Analysis of Automobile and Light Duty Motor Vehicle and Motor Vehicle Parts Manufacturing in the United States. Center for Automotive Research. https://cargroup.org/wp-content/uploads/2024/08/CAR-LV-Mfg-Econ-Contribution-Analysis-MBS-2024.pdf
IEA. (2025, May 14). Global EV Outlook 2025 – Analysis – IEA. IEA. https://www.iea.org/reports/global-ev-outlook-2025
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Laing, K. (2026, February 4). Electric vehicle registrations saw biggest jumps in these states. Sturgis Journal; USA TODAY. https://www.sturgisjournal.com/story/business/automotive/2026/02/04/electric-vehicles-2025-increase-in-registrations-in-michigan-number-one/88509019007/?gnt-cfr=1&gca-cat=p&gca-uir=true&gca-epti=z115301p001250c001250v115301d–53–b–53–&gca-ft=257&gca-ds=sophi
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Neelakandan, L. (2025, October 29). GM lays off more than 1,700 at sites in Michigan, Ohio, citing EV challenges. CNBC. https://www.cnbc.com/2025/10/29/gm-layoffs-michigan-ohio.html
Saha, D., Jaeger, J., Rajpurohit, S., Said, E., & Laitner, J. A. “Skip”. (2023). A Roadmap for Michigan’s EV Future: An Assessment of the Employment Effects and Just Transition Needs. World Resources Institute. https://www.wri.org/research/michigan-ev-future-assessment-employment-just-transition