Automotive Employers Navigate Uncertain Times
The global automotive industry stands at a crossroads in 2025, shaped by profound technological change, shifting consumer behaviors, and the relentless pace of business disruption. As automakers adapt to the evolving landscape—marked by slowing but still significant electric vehicle (EV) adoption, complex trade dynamics and the growing influence of artificial intelligence—workforce trends are emerging as both a challenge and the key to future competitiveness. Drawing from the latest industry research and expert interviews, I’d like to explore the major workforce trends and hurdles employers are facing, and the opportunities that lie ahead for building a resilient, future-ready automotive workforce.
Growing Impact of Global Trade Policy
Few factors have impacted the automotive workforce more dramatically in 2025 than the ongoing uncertainty around global trade policies. According to the Automotive World of Work 2025 Outlook, an overwhelming 91% of automakers report that trade policy ambiguity is directly influencing their hiring plans. Automotive industry employers are staying cautious with most saying they will keep Q3 2025 headcount flat (45%), some hiring (38%), and a handful anticipating a decrease (15%) in Q3 2025.
We're also hearing this as we speak to our Tier 1 supplier and original equipment manufacturer (OEM) automotive clients. The lack of visibility regarding market trends and policy agreements has caused many to pause recruitment for new roles. So instead of bold expansion, they are focused on retaining and upskilling their current talent.
Slowing EV Growth Spurs Innovation
Electric vehicle (EV) adoption is still expanding, but 2025 marks a period of recalibration. The automotive industry saw global EV sales surpass 17 million units in 2024, growing by 25%. China led with 11 million units sold, while growth in the U.S. slowed to 10% (from 40% the year before). For 2025, global EV sales are forecasted to exceed 20 million, making up more than one in four new cars sold worldwide.
Yet, the growth trajectory is less steep than before, particularly in Europe and North America. As government subsidies wane and economic uncertainty persists, both automakers and consumers are adopting a “wait and see” approach.
When we speak with our clients, they share some reasons why. Most early adopters already have EVs. And with average new vehicle prices still near historic highs, many consumers are keeping their vehicles longer. In fact, the average age of passenger cars in Europe is now 12.5 years.
At the same time, OEMs are seeing growing EV competition from Chinese nameplates, particularly in developing markets. The good news is that this competition is spurring innovation. For example, Ford is investing$2 billion to reinvent some of its assembly lines to reduce EV production costs. These changes will continue to drive the need for a skilled and agile workforce.
Hybrid Technologies and the Rise of “Hybrid Skills”
Hybrid vehicle sales are surging as an interim solution while the world transitions to full electrification. In the U.S., 60% of EV sales in 2024 were hybrid, and in China, 30% of new car sales were plug-in hybrids.
But this isn’t the only important hybrid trend in the automotive industry today. Limited resources and growing business needs are increasing the importance of workers with a hybrid skillset.
For example, automakers worldwide tell us Operations & Logistics (30%), Engineering (24%)and Manufacturing & Production (21%) are the most difficult hard skills to find. At the same time, they say soft skills such as Ethical Judgment, Customer Service, and Team Management (all at 29%) are highly valued and difficult for AI to automate.
Software-Driven Transformation and Automation
The automotive industry is rapidly transitioning toward software-defined vehicles (SDVs), where features and functions, like Wi-Fi capabilities and self-driving, are managed primarily by pay-to-use software. By 2030, companies like Stellantis and General Motors expect to generate over $20 billion annually from subscription-based services. This “software first” mindset is not only changing product development but also has far-reaching implications for workforce composition.
Factory floor workers are seeing their roles change as AI-driven process automation expands into areas like production forecasting and predictive maintenance.AI is being deployed to optimize manufacturing and maintenance, delivering faster, more reliable processes.
However, this comes with a degree of workforce anxiety. Nearly half (42%) of automotive employees worry that advancing technology could make their roles obsolete within two years. Upskilling, continuous learning, and thoughtful change management are essential to support employees through times of disruption.
The Talent Crunch: Recruitment, Retention, and Reskilling
Despite uncertainty, the need for skilled talent remains acute. Most automakers (74%) still struggle to find the skilled talent they need, and an aging workforce is exacerbating the problem. In the U.S. alone, 10,000 Baby Boomers (those born between 1946 and 1964) reach retirement age every day, and 72% of automotive employers worry about the impact on their HR strategies.
At the same time, when we speak with clients, they admit it’s not necessarily an industry that is still very attractive for young people. With frequent headlines about crises, plant closures, and headcount reductions, they understand why more effort is needed to recruit young skilled technical talent. This is why they are working to attract more women and diverse talent to the sector to expand the size of prospective talent pools.
Opportunity Amidst Disruption
While the challenges are significant, the disruption also creates opportunity. The current business uncertainty has opened access to a broader pool of skilled workers, and “buy low and develop” hiring strategies may allow bold employers to secure top talent. New business models, such as recurring revenue from software-enabled services, could create $1.5 trillion in new opportunities by 2030, according to McKinsey.
Forward-thinking business leaders are leveraging skills mapping and global talent sourcing—especially for remote-capable roles—to build more resilient organizations. Continuous learning is no longer optional; it is a prerequisite for success in this era of rapid change.
Our 2025 Automotive World of Work report explores how automakers will navigate the balance between tradition and innovation, caution and transformation, challenge and opportunity. Employers must strike a delicate balance—investing in new skills and technologies that will define the future, while supporting and reskilling their existing talent base.
Article originally written by Julien Matalou, Global Vice President, Consumer Goods & Automotive for ManpowerGroup Global.
