Automotive transformation is stalled not by tech, but by outdated leadership that can’t keep pace with today’s speed, complexity and cultural needs.
You wouldn’t stream 4K video on a Windows 95 machine. But that’s exactly what’s happening in automotive right now. We’re investing in smart factories, AI tools and cloud systems — while leading with outdated mindsets that don’t fit the pace or complexity of today’s world.
We’ve both been in this industry for decades, and we’ve seen how much it’s changed. Vehicle design, manufacturing and supply chains have all evolved but in many organizations, the leadership model hasn’t. That’s where transformation gets stuck.
What’s slowing us down isn’t technology. It’s how we lead.
Outdated leadership, modern demands
For more than a century, command-and-control leadership has been the norm in automotive. You follow the hierarchy. You don’t ask too many questions. And you make the numbers, no matter what.
That mindset might have made sense when the industry was focused on repeatable processes and predictable outcomes, but that’s not the world we live in anymore. Today, we need speed, creativity and adaptability. We need teams that are empowered to make decisions, not just take orders.
We still see leadership styles rooted in fear. People are afraid to fail, afraid to speak up, afraid to try something new. When your organization’s culture looks like that, even the best technology won’t deliver the results you want and need.
How to lead for what’s next
The shift we’re talking about isn’t just philosophical. It’s practical. When people are trusted, they move faster. When they feel supported, they’re more likely to bring ideas forward. When leaders are clear, open and authentic, alignment isn’t forced — it happens naturally.
That’s what authentic leadership looks like. It’s not about being soft. It’s about being real. It’s about showing up as yourself, building real relationships and holding people accountable in a way that motivates, not intimidates.
We stand behind these views wholeheartedly, but they’re also backed by data. For example, the Great Place to Work Institute found that Millennials are 22 times more likely to want to stay at companies with a high-trust culture. When people stay, they contribute, care and get results.
Culture is the real bottleneck
We’ve seen companies spend millions on technology, only to fall short because departments aren’t talking to each other, decisions are slow or the plant teams weren’t even involved in the process.
ERP systems don’t fail because the software doesn’t work. They fail because people don’t trust it — or each other. AI can’t make decisions if no one’s willing to act on the insights. Culture is what makes transformation stick, or what makes it stall.
We have to take a hard look at how our companies are structured, how we make decisions and whether we’re actually empowering people to do the work.
Stop mistaking symptoms for the real problem
We hear the same explanations over and over:
- “We have a workforce shortage.”
- “Tariffs are slowing us down.”
- “Our supply chain is too complex.”
Sometimes those things are real but more often, they’re symptoms of something deeper. Are people leaving because you’re not investing in training? Are tariff issues harder than they should be because your supplier data is spread across seven systems? Is your supply chain slow because you’re still managing it in spreadsheets?
We’re not saying leadership fixes everything, but the way you lead shapes the systems, the processes and the culture around them. That’s where real transformation starts.
What good leadership looks like now
It’s not just about trust. It’s about presence. About showing up with clarity, purpose and humility.
We believe the next generation of automotive leaders needs to be:
- Grounded and self-aware
- Willing to listen before they speak
- Clear in their vision and communication
- Supportive of different perspectives (that’s cognitive diversity)
- Comfortable being real — even when it’s hard
Yes, that means putting the co-op student in the strategy meeting. It means talking to your plant managers early in a system rollout. It means building bridges across departments that haven’t worked together before.
You can’t keep building the future with the same voices that built the past.
What are the best companies doing differently?
If you want proof that culture matters, just look at the Working Relations Index. Toyota is always at the top. Why? Because they work with suppliers, communicate and collaborate. They lead with trust.
GM is another great example. Years ago, they were near the bottom of the WRI. Now, they’re climbing steadily because they’re making it a priority to empower buyers and align across engineering, purchasing and quality. That kind of shift doesn’t happen by accident. It starts with leadership.
On the flip side, companies that cling to fear-based, top-down cultures are struggling to retain talent, adapt quickly or get real value from their digital investments.
Change moves fast. So should we
This isn’t a five-year plan. Change is happening now — ready or not. According to Dr. Nadya Zhexembayeva, the average lifespan of a Fortune 500 company has dropped from 75 years to under seven. Reinvention isn’t a long-term strategy anymore. It’s a way of life.
That means your leadership model can’t be stuck in the past. If you want to move fast, adapt and stay competitive, you need a culture that can support it — and leaders who can guide it.
The hard truth about transformation in automotive
We’ve been in the room when ERP projects stall. We’ve seen brilliant supply chain ideas fall flat because no one felt safe enough to speak up. We’ve watched incredible talent walk out the door because they didn’t feel seen or heard.
We’ve also seen what happens when a leader decides to do it differently.
When leadership evolves, everything else gets easier — technology adoption, supplier relationships, team performance. You have to be willing to lead with trust. You have to be willing to let go of control.
It’s not easy, but it’s worth it. The companies that get this, truly get it, will shape the future of automotive. The rest? They’ll keep wondering why nothing’s working.
Let’s not be the ones left wondering.
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