Automotive Suppliers Under Pressure
The automotive supplier industry is entering one of the most demanding transformation phases in its history. Electrification, geopolitical uncertainty, cost pressure from OEMs, and persistent supply chain volatility are converging at the same time. For many suppliers, the question is no longer whether transformation is needed, but how it can be achieved while operational performance must continue without interruption.
As IMW’s Key Partner for the Automotive Expertise, Bodo Blanke works closely with international suppliers facing these challenges. From his perspective, the current pressure on the industry is best understood as a combination of overlapping transitions rather than a single, linear change.
“We are seeing a triple transformation happening simultaneously,” he explains. “Electrification is fundamentally changing products, processes, and competencies. At the same time, suppliers are under massive cost pressure from OEMs, while supply chains remain volatile due to geopolitical and regulatory uncertainty.”
What makes this particularly complex is that suppliers are forced to operate in two realities at once. Declining ICE volumes still need to be managed efficiently, while investments in new technologies and capabilities are unavoidable. According to Blanke, this duality is precisely where many transformation programs lose momentum.
“Operational change management becomes essential because companies must improve performance today while preparing for a fundamentally different business model tomorrow,” he says.
That shift from strategic intent to operational reality is where change management moves from being an abstract concept to a concrete leadership discipline. In Blanke’s experience, many organizations underestimate how much structure and consistency are required to turn new strategies into daily behavior.
“Change management creates clarity, alignment, and execution discipline,” he notes. “It ensures that new processes, digital tools, and organizational models actually become part of everyday routines. In practice, that means clear leadership rhythms, transparent KPIs, and teams that understand not just what is changing, but why.”
This need for disciplined execution becomes even more apparent when digitalization and AI enter the picture. While the automotive industry is investing heavily in new technologies, Blanke emphasizes that value is rarely created by technology alone.
“The real value comes from operational use cases,” he explains. “Quality inspection using computer vision, predictive maintenance, automated documentation, or improved forecasting can all deliver significant benefits. But the decisive factor is adoption.”
Without trust in the tools, updated SOPs, and leadership routines that reinforce new ways of working, digital initiatives often remain theoretical. “That’s why every digital program must go hand in hand with training, co-design, and a strong operational change plan,” Blanke adds.
The same logic applies to one of the most sensitive aspects of the transformation: the workforce. As suppliers shift toward electronics, software, and automation, technical requirements change, but so do expectations of leadership.
“This is not just a skills issue,” Blanke says. “It’s a leadership challenge. Change management provides structure by defining future roles, building capabilities, and reducing uncertainty. People are generally willing to adapt quickly, as long as they feel supported, involved, and equipped.”
From IMW’s perspective, this is where interim leadership plays a distinctive role. Rather than advising from the outside, interim managers operate within the organization, bridging strategy and execution.
“IMW combines deep automotive expertise with hands-on interim leadership,” Blanke concludes. “As Key Partner for Automotive, I work closely with other IMW partners across the globe. Each brings proven experience in restructuring, efficiency programs, supply chain stabilization, and digital transformation. What unites us is a strong operational focus. We anchor change in day-to-day execution and take ownership of results.”
Looking ahead: industry dialogue and shared learning
On 24 March, IMW will host an international Automotive webinar, bringing together IMW partners and industry experts to discuss current market trends, geopolitical and regulatory developments, and the evolving role of interim management in automotive transformation.
The session will focus on how automotive suppliers can combine operational excellence with strategic flexibility and how interim leaders can accelerate change in an increasingly uncertain environment.
Click here for more webinar information and registration.