Abstract:
The twin transition - automation/digitalization and the shift to electromobility - poses major challenges for the European automotive supplier industry. This article examines how these transformations reshape plant roles and labor-use strategies in Germany and Central and Eastern/South Eastern Europe (CEE/SEE), regions historically linked through an integrated division of labor. The paper addresses three questions: (1) How have lead plant functions evolved between 2016 and 2024? (2) What differences do we observe between German and CEE/SEE automotive supplier plants with regard to the twin transition? (3) What differences do we observe between Germany and CEE/SEE with regard to labor-use strategies? The analysis draws on two surveys of employee representatives in supplier plants (Germany and five CEE/SEE countries) conducted in 2016 and 2024. Findings indicate slight erosion of German lead plant roles without corresponding upgrade in CEE/SEE; limited but stronger efforts in Germany toward electromobility; and persistent national differences in automation and labor-use strategies, with Germany maintaining high-skill approaches and CEE/SEE relying primarily on semi- and low-skilled labor.
