Europe’s automotive industry is in a race against time as electrification and digital transformation reshape the map of industrial employment.
Europe’s auto workers are facing the most significant skills transition in decades as manufacturers move towards zero-emissions and software-driven vehicles.
A new joint report from the European Automobile Manufacturers’ Association (ACEA) and Adecco Group warns that without a swift and concerted reskilling effort, the industry risks both deepening skills shortages and unnecessary turnover.
Sigrid de Vries, Executive Director of ACEA, commented on the report:
“Keeping value chains, jobs and innovation anchored in Europe requires a long-term approach that connects regions, industry and education through sector-based solutions.
“This groundbreaking analysis provides actionable recommendations to move from reactive to proactive workforce planning.
“The next stage must focus on scaling up initiatives that can make a real impact, such as the Automotive Skills Alliance, to empower workers through lifelong learning, strengthen regional cooperation, and ensure no region is left behind in the green and digital transition.”
Electrification and digital skills will take center stage
This analysis clearly shows that by 2035, Europe’s automotive workforce will undergo a major reorientation towards highly skilled roles in engineering, IT and management.
Expertise in software engineering, battery technology and advanced data analytics are becoming increasingly essential, reflecting the sector’s push towards electrified and digitally connected vehicles.
While these new roles grow in importance, the report warns that there will be structural decline in medium- and low-skill jobs, from metalworkers to clerks to traditional craft jobs.
Paradoxically, as the workforce ages and demands for replacement, these same positions quickly become understaffed, creating short-term skills shortages that employers cannot ignore.
Reactive HR practices increase risk
Despite widespread recognition of the skills shift, many European automotive companies remain unprepared to translate strategic workforce objectives into practical local action plans.
The report identifies several significant blind spots. Production downtime is often underutilized for reskilling efforts, local stakeholders operate in disconnected silos, and workplace culture lags behind the operational changes needed to support internal mobility.
This misalignment creates inefficiencies and the risk of employee turnover, leaving many employees feeling uncertain about their future in the sector.
Regional disparities add complexity
The report also highlights that the transformation of Europe’s automotive workforce is not uniform across the continent.
Automotive employment is expected to decline in southern Germany, central Bohemia, western Slovakia and western Sweden, but to increase in northern Spain.
These disparities highlight the importance of region-specific strategies and policies to effectively manage workforce transitions.
Introducing the Automotive Skills Implementation Toolkit
To address these challenges, ACEA and Adecco have launched the Automotive Skills Implementation Toolkit, a practical framework for HR and policy makers.
This toolkit encourages automotive industry employers to adopt proactive workforce planning, use non-production time for targeted training, and invest in culture change to support career mobility.
Local ecosystems are required to focus on demand-driven training programs and clearly defined job-to-job pathways, rather than creating redundant curricula.
Meanwhile, EU and national policymakers are called upon to provide stable and coordinated support for lifelong learning and accessible workforce programmes.
Denis Macuel, CEO of Adecco Group, added: “The transition from internal combustion engines to electric vehicles is less an evolution than a complete transformation of the workforce, and it’s happening rapidly.
“Our findings clearly show that the main barrier is not a lack of training content, but operational implementation.
“If industry and policymakers do not move from reactive hiring to proactive, regionally tailored workforce planning, we risk losing both critical manufacturing capacity and millions of skilled workers. Competition continues, but we need to adjust our speed in the right direction.”
Securing a resilient future
The initiative aims to ensure the sector’s competitiveness and resilience by equipping Europe’s 13 million automotive workforce with the skills they need for a zero-emissions digital future.
As electrification accelerates and technology reshapes production, this report highlights that timely and co-ordinated action is essential to prevent workforce disruption and maximize the potential of Europe’s industry.
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