Leadership in Automotive Must be Defined by Results

  • MU Leadership Navigator | An Automotive & Mobility Perspective

By Klaus Steinmann Jonas Nußbaum

The automotive and mobility industry is facing some of the biggest changes in its history. The next five years may bring more change than the previous fifty. Over the past five years, the industry has had to deal with continuous disruption. This has included the COVID-19 pandemic, supply chain disruption, semiconductor shortages, and geopolitical tensions such as the wars in Ukraine and Iran and rising tariffs.

At the same time, the industry is managing several major shifts at once: electrification, the move to software and AI-defined vehicles, new Chinese competitors, stricter regulation, and changing customer expectations. This means leadership requirements are changing. Companies do not only need strong general leaders. They need leaders who can perform in a very specific business context and deliver clear business results.

To navigate this environment effectively, organisations in automotive and mobility need leadership that focuses on:

  • Adaptability: The ability to adjust quickly to changing market conditions, regulation, and new technologies.
  • Sustainability: A commitment to solutions that meet customer needs while also meeting environmental regulation and broaden ESG expectations.
  • Technological innovation: The ability to integrate artificial intelligence (AI) across the value chain, accelerate software capabilities, and advance autonomous driving where relevant. This also includes managing the shift to Software and AI-Defined Vehicles (SDV / AIDVs).
  • Customer centricity: A strong focus on customer needs, user experience, and changing buying behaviour.
  • Using data effectively: The ability to turn data from connected vehicles and customers into better products, tailored services, stronger loyalty, and new revenue streams.
  • New revenue models: A focus on developing new sources of revenue, such as mobility services, subscriptions, software updates, and in-car digital features.
  • Collaboration and partnerships: The ability to work across ecosystems with suppliers, startups, technology players, and universities to reduce cost, share risk, and speed up innovation.

According to the International Energy Agency (IEA)1, electric car sales grew by 20% globally in 2025, exceeding 20 million vehicles, meaning one in four new cars sold worldwide was electric. Sales are projected to rise further to 23 million in 2026, representing 28% of total car sales, underscoring how rapidly the market is transforming and how critical it is for leaders to manage this transition effectively.

Three Principles are Particularly Critical

1. High-performance leadership is contextual in automotive & mobility

High-performance leadership in automotive and mobility cannot be defined through a generic leadership model alone. The context is too specific, too complex, and too dynamic. What makes a leader successful in one sector, market, or phase of transformation may not work in another.

The industry is operating in a period of uncertainty marked by industrial transition, margin pressure, rising competition, and regulatory complexity. For example, the pace of EV adoption differs across regions, CO2 regulation is evolving, and customer demand remains uneven in many markets. Key challenges include:

  • High-cost pressure: High development costs linked to EV platforms, battery technology, and gigafactory investments.
  • The shift from ICE to EV manufacturing: A major industrial change that affects plants, supply chains, workforce capabilities, and capital allocation.
  • Increasing competition from Asia: Especially from Chinese EV players with strong speed, cost position, and digital capabilities.
  • Rising insolvency among European tier suppliers: This creates risk across the supply base and may lead to strategic dependencies.
  • Geopolitical uncertainty: Trade barriers, tariffs, raw material dependencies, and regional instability all affect planning and investment.

This is why companies should define leadership needs based on business context, not abstract capability lists. For example, a plant leader in an EV conversion programme should be measured differently from a commercial leader building a direct-to-consumer sales model, or an R&D leader responsible for software integration. Each role should be linked to the specific transformation, operational risk, and value creation challenge it is expected to solve.

2. Defining clear leadership results

To succeed in uncertainty, automotive organisations must move away from broad leadership frameworks and instead define clear, measurable outcomes for each leadership role. The key question should not only be “Does this person show leadership potential?” but also “What must this leader deliver in this role, in this market, over the next 12–36 months?”

Leaders should focus on specific outcomes, such as:

  • Cost management: Tight control of development spending linked to EVs and SDVs, while also responding to lower demand in some markets and heavy price pressure from new entrants.
  • Profitable growth: Clear plans to improve margin and grow revenue through stronger product positioning, new business models, and better use of market opportunities.
  • Innovation milestones: Specific targets for AI, software, connectivity, automation, or IoT integration that improve product competitiveness and operational efficiency.
  • Sustainability targets: Measurable progress on emissions, compliance, circularity, and other sustainability goals that matter to regulators, investors, and customers.

To make this practical, each leader should have 3–5 role-specific success measures. These should be linked directly to strategic priorities. Examples could include:

  • Reducing product development costs by a defined percentage.
  • Improving plant conversion timing from ICE to EV production.
  • Launching a software-based revenue offer by a target date.
  • Increasing supply chain resilience through dual sourcing or localisation.
  • Improving market share or profitability in a defined region or segment.

This approach creates much stronger accountability than generic leadership assessments. It also makes leadership development more precise, because gaps can be identified against real business outcomes rather than broad behavioural models.

By defining clear leadership success factors, organisations can build leadership teams that are more accountable, focused, and responsive.

3. Selecting leaders with proven achievements

The selection of leaders in automotive and mobility should be structured, evidence-based, and weighted towards the predictors that matter most for success in the role. In a period of major transformation, relevant experience should carry the greatest weight. In most cases, around 60–70% of the assessment should focus on proven track record: What the leader has already delivered in similar contexts, functions, and business situations. The remaining 30–40% should assess personal characteristics such as cognitive ability, adaptability, and leadership style. For roles with especially high complexity or change, the balance may be closer to 50/50, but proven performance should still remain a central part of the decision.

  • Proven Track Record: Prioritise candidates who have navigated similar transformations, notably in the shift from ICE to EV production and enhancing supply chain resilience.
  • Cross-Functional Expertise: Seek leaders who possess the capability to integrate strategies across various
    segments of the organisation, such as operations, R&D, and marketing.
  • Cultural Leadership: Choose leaders who can foster a culture of innovation and adaptability as the organisation evolves. International experience gets more important.
  • Responsive Decision-Making: Leaders should be equipped to make informed decisions based on real-time
    data and shifting market dynamics. The ability to adjust priorities and strategies can significantly impact an organisation’s resilience and profitability.

Selection should therefore focus less on personality-based leadership ideals and more on evidence of delivery in comparable business conditions. Companies should ask: Has this leader created value in a complex transformation? Have they led through uncertainty? Have they delivered measurable business impact? This more rigorous approach helps organisations identify leaders who are better prepared for the complexity of the automotive sector.

In conclusion, as the automotive and mobility industry faces unprecedented disruption, organisations must align leadership selection and development with the realities of the market. This means defining leadership through context and results, not through generic models alone. By focusing on adaptability, sustainability, innovation, and collaboration, and by setting clear business outcomes for each leader, companies can navigate uncertainty more effectively and strengthen their position for the future.

 


References

1 International Energy Agency (IEA). (2026). Global EV Outlook 2026. https://www.iea.org/reports/global-ev-outlook-2026