Automation in the automotive sector: Romania, Spain and Germany

Russo, Margherita and Simonazzi, Annamaria and Cetrulo, Armanda Cetrulo (2023): Automation in the automotive sector: Romania, Spain and Germany. Forthcoming in: Joint Research Centre (JRC)

Abstract

This study investigates the impact of technological upgrades and automation, on employment and working conditions in the automotive, sector in Romania, Spain and Germany. Utilising qualitative research methods, the study examines work organisation, job quality, and occupational composition from a gender perspective. The findings of the study exploring the impact of technology, identified main drivers for automation implementation as increased productivity, quality, and reduced manual labour availability. Automation and robotisation have also increased flexibility to cope with the variable composition of final products and the traceability of production processes. Barriers include high costs, technical difficulties, and the need for worker training. It observed that automation can simplify tasks, create new jobs, and increase responsibilities in middle management and team/shift leaders, while potentially reducing worker autonomy and increasing work pace. Positive job quality implications include ergonomics and improved operators' safety. Automation has reduced the number of line operators, while increased maintenance workers, quality control, logistics and indirect labour. The study observed vertical and horizontal gender segregation in hybrid production processes, with advancements towards horizontal gender equality in technologically advanced establishments. Addressing cultural attitudes and technical challenges is crucial for equitable benefits, as both industries currently undergo a transitional phase.

• Item Type: MPRA Paper
• Language: English
• Keywords: automotive sector, automation, digital transformation, OEMs, Ford, Renault, Dacia, Tier 1 suppliers, Tier 2 suppliers, Spain, Romania, Germany
• Subjects: J - Labor and Demographic Economics > J5 - Labor-Management Relations, Trade Unions, and Collective Bargaining; J - Labor and Demographic Economics > J5 - Labor-Management Relations, Trade Unions, and Collective Bargaining > J51 - Trade Unions: Objectives, Structure, and Effects; J - Labor and Demographic Economics > J5 - Labor-Management Relations, Trade Unions, and Collective Bargaining > J58 - Public Policy; L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance; L - Industrial Organization > L6 - Industry Studies: Manufacturing > L62 - Automobiles ; Other Transportation Equipment ; Related Parts and Equipment

References

Aitiip Centro Tecnológico. 2023. “Technological Services Specializing in Industrial Projects.” https://www.aitiip.com/en/.

Association of the German Automotive Industry (VDA). 2020. “Annual Report 2020. The Automotive Industry in Facts and Figures.” Berlin: Association of the German Automotive Industry (VDA) Behrenstraße 35, 10117 Berlin www.vda.de.

Bautista Smith, Janet. 2012. “A Case of Mistaken Capability.” https://www.isixsigma.com/lean-methodology/a-case-of-mistaken-capability/.

Blöcker, Antje. 2022. “Die Automobilindustrie : es geht um mehr als den Antrieb : eine Studie im Rahmen des Projekts ‘Sozial-ökologische Transformation der deutschen Industrie.’” In Die Automobilindustrie : es geht um mehr als den Antrieb : eine Studie im Rahmen des Projekts “Sozial-ökologische Transformation der deutschen Industrie”: Blöcker, Antje. Berlin : Rosa-Luxemburg-Stiftung. http://www.zbw.eu/econis-archiv/handle/11159/12740.

Fundación Estatal para la Formación en el Empleo. n.d. “Información sobre el sitema de formación para el empleo.” Formación para el empleo. Accessed July 28, 2024. https://www.fundae.es/formacion.

Germany Trade & Invest (GTAI). 2022. “The Automotive Industry in Germany.” Germany Trade and Invest Gesellschaft für Außenwirtschaft und Standortmarketing mbH Friedrichstraße 60 10117 Berlin Germany. https://www.gtai.de/resource/blob/64100/8fc3cff5774c2ec699172cd823a0ec0e/20220711_IO_Automotive_WEB.pdf.

Gorgoni, Sara, Alessia Amighini, and Matthew Smith. 2018. “Automotive International Trade Networks: A Comparative Analysis over the Last Two Decades.” Network Science 6 (4): 571–606. https://doi.org/10.1017/nws.2018.18.

Group, Mercedes-Benz. 2022. “Mercedes-Benz Digital Factory Campus Opens.” Mercedes-Benz Group. https://group.mercedes-benz.com/company/locations/transformation-berlin-site.html.

Hoffbauer, Andreas. 2023. “Wolfsburg Plant: Volkswagen Will Train 22,000 Production Employees for e-Mobility by 2025 | Volkswagen Newsroom.” https://www.volkswagen-newsroom.com/en/press-releases/wolfsburg-plant-volkswagen-will-train-22000-production-employees-for-e-mobility-by-2025-15480.

IG Metall. 2023a. “Ford Expands Clear-Cutting.” https://www.igmetall.de/im-betrieb/ford-jetzt-soll-auch-produktentwicklung-rasiert-werden.

———. 2023b. “Im Saarland Brennt Der Berg: Ford Saarlouis.” https://www.igmetall.de/im-betrieb/im-saarland-brennt-der-berg-ford-saarlouis.

International Labour Office, Sectoral Policies Department, Geneva. 2020. “The Future of Work in the Automotive Industry: The Need to Invest in People’s Capabilities and Decent and Sustainable Work.” https://www.ilo.org/resource/future-work-automotive-industry-need-invest-peoples-capabilities-and-decent.

Randall, Chris. 2023. “BYD in Talks with Ford for Factory in Saarlouis.” Electrive.Com. https://www.electrive.com/2023/01/25/byd-in-talks-with-ford-for-factory-in-saarlouis/.

Russo, Margherita, Fabrizio Alboni, Jorge Carreto Sanginés, Manlio De Domenico, Giuseppe Mangioni, Simone Righi, and Annamaria Simonazzi. 2023. “Regionalisation and Cross-Region Integration. Twin Dynamics in the Automotive International Trade Networks.” Structural Change and Economic Dynamics, July, S0954349X23000954. https://doi.org/10.1016/j.strueco.2023.07.006.

US EPA, OP. 2016. “Lean Thinking and Methods - 5S.” Overviews and Factsheets. November 16, 2016. https://www.epa.gov/sustainability/lean-thinking-and-methods-5s.