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Austria's Magna Steyr and its imminent ICE to EV transition, and how it syncs up with an AV future

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I know I often say this about many guests on my show, but today\u2019s discussion with Anna Kleissner, PhD and Michael Semmer, MS, was absolutely fascinating; easily one of my all-time favorite discussions.

It was engaging; it was at times entertaining; and it was incredibly thought provoking and educational.

To cut to the chase: it turns out that if Austria doesn\u2019t successfully orchestrate a transition of its roughly 314,000-strong automotive sector employees from ICE (internal combustion engine) vehicle production to EV production within about 10 years, it stands to suffer a whopping 5.8% reduction in GDP.

In plainer terms, Austria risks losing its entire automotive manufacturing industry if it doesn't fully embrace electric vehicles within 10 years.

If this sounds at all familiar, it\u2019s because it bears as striking similarity to what happened in the UK: in the post-war years, manufacturing (of which automotive was a considerable sector) made up some 48% of the country\u2019s economy. By 2013, manufacturing had shrunk to a mere 13%.

Similarly, the fate of once-great American cities Pittsburgh and Detroit offer an extreme look at what can happen if a local economy doesn\u2019t act nimbly to change with the times.

Regardless, the clock is ticking for Austria where the future of one of Europe\u2019s largest automotive manufacturing companies, Magna Steyr, hangs precariously on the edge as it struggles to transition from an ICE to an EV future.

If Austria \u2014 or any other country, for that matter \u2014 can manage the transformation wisely, not just at a private level, but indeed at a national level, then it will not only sustain the roughly 314,000 jobs than hang in the balance, but also provide new jobs for generations to come.