The automotive industry is undergoing a radical transformation as new technologies, consumer preferences,and environmental concerns reshape the mobility landscape. Electric vehicles (EVs), autonomous driving, The automotive industry also needs leaders who can adapt to the fast-changing environment, embracediversity and innovation, and manage complex stakeholder relationships. This ManpowerGroup Global Insights •What are the key trends driving business transformation in the automotive industry? •How are employers and employees managing the accelerating pace of change? •How will the transformation of the automotive industry impact the future of work? Workforce Implications: •Safer and more connected vehicles aregreat news for consumers, but thesecomplex systems are also more difficult The Reinvention of It is not an overstatement to say the automotive industry is in the midst of one of the most dynamic periodsof change since the introduction of the assembly line. The entire automotive value chain must adapt •As cybersecurity becomes increasinglyimportant, the automotive industry willneed to compete with tech and nearly •Safety First:The use of vehicle safety technologies such as Electronic Stability Control (ESC), AdaptiveCruise Control, Lane Keep Assist, and Brake Assist are growing, and we are just beginning to see theimpact. For example, the European Commission estimates these technologies in Europe could reduce •Skills such as data analytics and machinelearning will become increasinglyvaluable as automakers seek to leverage •Make the Connection:Today’s vehicles have more than 100 sensors which create a constant stream ofdata. Industry analysts estimate every connected car generates 1-2 terabytes of raw data every day. •Secure the Future:Increasingly connected vehicles will make cybersecurity critically important. In arecent automaker survey, 100% of respondents expected vehicle cyber-attacks to increase dramatically •Talent scarcity due to workforce agingwill increase in the world’s largestautomotive markets (Asia Pacific, Going “Glocal” For decades, complex global sourcing and just-in-time productionhave been standard operating procedure for the automotiveindustry. However, recent events such as the COVID-19 pandemic •Process automation reduces overallheadcount needs, but automakers mustfind more highly skilled talent to maintain •Localization and duplication of supplychains will require specialized talentwhich may not currently exist in aregion (e.g., lithium mining and battery •Going Local:Nearly two thirds of manufacturers (64%) say they are currently regionalizing theirsupply chains. For those that currently depend on supply chain inputs from another region (49%), •Driving Automatic:The widespread use of automation began in the automotive industry, and itremains the top global sector for automation. Today, global automotive production is supported by •Batteries Included:The European Union is scaling up battery production to meet growing regionaldemand. For example, ManpowerGroup is partnering with the InnoEnergy Skills Institute to help UP TO800,000WORKERSWILL BE NEEDEDBY 2025TO SUPPORT GROWINGBATTERY Overhauling the Vehicle Workforce Implications: •The competition for skilled digitalcustomer experience (CX) talent with Vehicle ownership is undergoing a radical transformation. With the rise ofautonomous, electric, and shared mobility, consumers are rethinking theirrelationship with cars. Some may opt for subscription-based or pay-per- •Autonomous vehicle innovation willrequire recruiting and retaining the most •The growth of shared vehicleownership will increase the importance •Digital First:When buying a car, consumers want a digital-first experience which combinesthe research tools and transparency they have come to expect from other purchases. Today,most consumers (90%) research online channels before buying a vehicle. At the same time, in- •Growing MaaS:As the increasing sophistication of vehicle technology continues to increase thecost of vehicle ownership and urbanization increases, there is a growing opportunity for Mobilityas a Service (MaaS). Where there were only 10 megacities in 1990 — those metropolises with 10 •Growing Autonomy:Autonomous (self-driving) vehicle technology and adoption is growing andhas the potential to dramatically change vehicle ownership. A future of working instead of driving Shifting Gears to Electric Around the world, both automakers and consumers are driving a dramatic shift from 100 years of aninternal combustion engine focused automotive industry. We are only beginning to see the implicationsfor workers and consumers as the fundamentals of vehicles, their infrastructure, and the automotive •There will be disruption and somejobs tied to the production of internalcombustion engine vehicles will beeliminated. This is already creating •Charging Ahead:As vehicle electrification continues togrow, so will the need for public charging i