December 5, 2025
With the automotive supplier industry facing a perfect storm of challenges, now’s the time to act. Our report outlines three imperatives that enable suppliers to transform their operating model and future-proof their organization.
These are difficult times for automotive suppliers. Costs are growing, competition is fierce, trade tensions are rising and new players are disrupting the market like never before. European players, in particular, are feeling the heat, weighed down by stagnating productivity and legacy setups. EBIT margins in Europe are almost three percentage points below pre-COVID levels, for example. Suppliers know they must act and transform their operating models to secure their futures. But how?
Our “Future-proof automotive suppliers” report proposes a holistic solution. It outlines three interconnected imperatives that suppliers should focus on to remain relevant and ensure organizational success – achieving cost competitiveness; uplifting organizational speed and innovation; and strengthening organizational resilience and flexibility. Each is analyzed in detail, with key challenges highlighted and concrete action areas identified. The results of an exclusive Roland Berger survey and job postings data inform the analysis. We conclude the report with a series of specific recommendations that will allow suppliers to implement a comprehensive organizational transformation and build the foundations of long-term success.
- Achieve cost competitiveness
The report identifies structural inefficiencies, particularly in overhead functions, and non-core activities as the key factors limiting cost competitiveness. To address them, suppliers must adopt a “zero-based” approach to streamline operations and reduce costs. The aim is to eliminate non-essential tasks, standardize processes to reduce complexity, and leverage AI and automation to increase efficiency across corporate functions. This should be supported by a cost-conscious and
performance-driven culture.
- Uplift organizational speed and innovation
Research shows that many suppliers are hindered by overly complex structures, slow decision-making processes and an insufficient focus on future-ready skills. To overcome these barriers, suppliers must simplify their organizational structures by reducing hierarchical layers and rightsizing functional footprints. This means supporting effective decision-making and improving workforce strategies.
- Strengthen organizational resilience and flexibility
The ability of suppliers to respond to change is often limited by their siloed structures, fragmented processes and poor interdepartmental collaboration. To build resilience, the report recommends working towards two objectives. First, establishing cross-functional organizational platforms, and second, prioritizing change management capabilities.
For more information about the three imperatives, the survey or to read our recommendations on how suppliers can achieve a comprehensive transformation across culture, processes, structure and systems, please download a copy of the report.
RB contacts
Cyrus Asgarian, Senior Partner
Felix Mogge, Senior Partner
Niels Kammerer, Partner
Verena Koch, Partner