Shifting towards Electric Vehicles: A Case Study of Mercedes-Benz from the Perspective of Cross-Functional Teams and Workforce Transformation

Abstract

The automotive industry’s shift towards electric vehicles (EVs) is driven by technological advancements and environmental concerns. This paper examines Mercedes-Benz’s strategy in this transition, highlighting the challenges and opportunities involved. Using thematic analysis of semi-structured interviews with key professionals at Mercedes-Benz, the study reveals a dual strategy: integrating new talents with specific EV competencies and upskilling the existing workforce. This approach reflects the company’s recognition of evolving vehicle development requirements and commitment to maintaining a skilled workforce. Emphasis on data-driven functions highlights the industry’s shift towards technological advancements. The transition significantly impacts workforce roles, necessitating role reassignment and collaborative planning, indicating a culture of inclusivity and proactive change management. Challenges include the importance of mindset change and adaptability among employees, as well as managing overlapping traditional and EV projects, leading to increased workloads and compressed timelines. Tailored training and development strategies are essential for a comprehensive transition. Mercedes-Benz’s commitment to an electric-only strategy signals a clear future direction. However, this raises questions about workforce preparedness and ongoing skill development. The study offers insights into managing workforce transformation in the EV transition, contributing to academic discussions and providing practical guidance for industry professionals.