German Automotive Industry Relies on Digital Skills

In its drive to gain digital skills, the German automotive industry is mainly looking to its new hires. Digital skills in cutting-edge technologies are 71 percent more common among employees joining the sector than those already on board. “It is imperative to also train those people who have been working in the industry for many years and prepare them for the challenges that lie ahead,” says Oliver Falck, Director of the ifo Center for Industrial Organization and New Technologies and coauthor of the study.

Still, the German automotive industry employs more experts working in fields related to digitalization – such as engineering, IT, and education – than other countries do. “In a global comparison of digitalization in the automotive industry, Germany appears to stack up relatively well,” Falck says.

However, there are differences within the industry itself. “Compared to the large automakers, smaller suppliers have some catching up to do when it comes to their employees’ digital skills,” Falck says. On average, digital skills in cutting-edge technologies are 23 percent more common among those working for the major manufacturers.

“Digitalization not only creates new occupational groups, it also changes the scope of duties for existing professions. Our data clearly shows that digitalization has arrived in the German automotive industry,” says Kristin Keveloh from LinkedIn, coauthor of the study. For this reason, the study used LinkedIn members who work in the automotive industry and the skills they feature in their profiles. This provides the basis for a detailed analysis of how skills are developing within the German and global automotive industries.