Europe’s automotive industry is racing against time as electrification and digital transformation redraw the map of industrial employment.
As manufacturers shift toward zero-emission and software-driven vehicles, the European automotive workforce is facing its most significant skills transition in decades.
A new joint report from the European Automobile Manufacturers’ Association (ACEA) and the Adecco Group warns that without rapid, coordinated reskilling efforts, the sector risks both deepening skills shortages and unnecessary job displacement.
Speaking on the report, Sigrid de Vries, Director General of ACEA, commented: “Europe’s automotive transition is an industrial, skills and competitiveness challenge for the entire ecosystem.
“Keeping value chains, jobs and innovation anchored in Europe requires a long-term approach that links regions, industry and education through sector-based solutions.
“This landmark analysis provides actionable recommendations to move from reactive responses to proactive workforce planning.
“The next phase must focus on scaling initiatives that can deliver real impact – such as the Automotive Skills Alliance – to empower workers through lifelong learning and strengthen regional cooperation, ensuring no region is left behind in the green and digital transition.”
Electrification and digital skills take centre stage
The analysis paints a clear picture: by 2035, Europe’s automotive workforce will see a significant reorientation toward high-skilled roles in engineering, IT, and management.
Expertise in software engineering, battery technology, and advanced data analytics is becoming increasingly essential, reflecting the sector’s push toward electrified and digitally connected vehicles.
While these emerging roles are gaining importance, the report warns that medium- and low-skilled positions – ranging from metalworkers to clerks and traditional craft roles – will undergo structural decline.
Paradoxically, these same positions are experiencing immediate shortages due to an ageing workforce and replacement demand, creating a short-term skills crunch that employers cannot ignore.
Reactive HR practices heighten risks
Despite widespread awareness of the skills shift, many European automotive companies remain unprepared to translate strategic workforce goals into practical, local action plans.
The report identifies several critical blind spots: production downtime is often underutilised for reskilling initiatives, regional stakeholders operate in disconnected silos, and workplace cultures lag behind the operational changes needed to support internal mobility.
This misalignment has created inefficiencies and risks of worker displacement, leaving many employees feeling uncertain about their future in the sector.
Regional disparities add complexity
The report also emphasises that the transformation of the European automotive workforce will not be uniform across the continent.
Southern Germany, Central Bohemia, West Slovakia, and West Sweden are projected to experience a decline in automotive employment, while northern Spain could see growth.
These disparities underscore the importance of region-specific strategies and policies to manage workforce transitions effectively.
Introducing the Automotive Skills Implementation Toolkit
To tackle these challenges, ACEA and Adecco have launched the Automotive Skills Implementation Toolkit, a practical framework for HR and policymakers.
The toolkit encourages automotive employers to adopt proactive workforce planning, use non-production periods for targeted training, and invest in cultural change to support career mobility.
Regional ecosystems are urged to focus on demand-driven training programmes and clearly defined job-to-job pathways, rather than creating redundant curricula.
Meanwhile, EU and national policymakers are called upon to provide stable, coordinated support for lifelong learning and accessible workforce programmes.
Denis Machuel, CEO of the Adecco Group, added: “The shift from internal combustion to electric vehicles is less an evolution and more a complete transformation of the workforce, and it’s happening at speed.
“Our findings clearly show that the primary barrier isn’t a lack of training content – it’s the operational delivery.
“If the industry and policymakers don’t move from reactive hiring to proactive, regionally coordinated workforce planning, they risk losing both crucial manufacturing capacity and millions of skilled workers. The race is on, but we must align our velocity in the right direction.”
Securing a resilient future
By equipping the 13 million-strong European automotive workforce with the skills needed for a zero-emission, digital future, the initiative aims to ensure the sector remains competitive and resilient.
As electrification accelerates and technology reshapes production, this report underscores that timely, coordinated action will be essential to prevent workforce disruptions and to maximise Europe’s industrial potential.
