Widukind Baier
In 2025, the German automotive industry will continue to be under pressure. Declining sales, job cuts, and structural uncertainties characterize the picture. Suppliers in particular are struggling with falling demand, rising costs, and the pressure to transform due to electromobility and digitalization. But despite – or perhaps because of – these challenges, it is clear that the industry is not at an end. It is undergoing a profound transformation that is opening up new opportunities – including for executives and their targeted selection.
Between crisis and course correction
The figures speak for themselves: in 2024, the industry recorded a 5% decline in sales, with suppliers seeing an even greater decline of 8%. Employment continued to shrink, especially in small and medium-sized enterprises. At the same time, pressure from international competition, regulatory requirements, and technological upheavals is growing. Many companies are faced with the question: consolidate, transform – or give up?
But there are also rays of hope. OEMs are investing more heavily in software, platform strategies, and new partnerships. Demand for sustainable mobility is growing, as is interest in data-based business models such as apps, comparable to bonus programs in retail. And it is also worth broadening one’s geographical horizons: in Asia, for example, the car is increasingly seen not only as a means of transportation, but also as a living space with a wide range of additional functions. Those who set the right course now can emerge from the crisis stronger than before.
New leadership for new challenges
In this phase of upheaval, classic career paths and traditional leadership models are often no longer sufficient. What is needed are personalities who can shape change – with courage, vision, and the ability to lead even in times of uncertainty. Particularly sought after are:
Managers with experience in transformation and restructuring
• Managers with technological expertise, for example in software-defined vehicles or battery production
• Individuals with intercultural skills and a global perspective to tap into international markets
• Managers who not only understand change management, but also live it
Cautious but realistic optimism
The automotive industry will not recover overnight. But it has the power to reform itself profoundly—as it has done several times in its history. Investing in the right managers today lays the foundation for stability, innovation, and sustainable growth. Those who are declared dead live longer—if they are willing to change. Because those who don’t move with the times will be left behind.