The automotive industry is a field of intense competition driven by external pressures such as price competition from China and tariffs imposed during the Trump administration. The German automakers are particularly concerned as large Asian manufacturers like Hyundai and Toyota are taking radical measures to maintain their market position. Hyundai, for instance, is testing the integration of AI technology and robotics in their factories, potentially replacing human workers with robots like their newly introduced Atlas, which was showcased at the CES in Las Vegas. These developments could lead to a significant shift in employment within the automotive sector.

The investment in robotics aims to increase efficiency in highly automated factories. By the summer, Hyundai plans to start trial runs of Atlas in their new U.S. factory, with full deployment of AI integration expected by 2028. This move could revolutionize production, allowing Hyundai to manufacture up to 30,000 humanoid robots annually, which would further drive down operational costs and respond to market pressures. However, this prospective change has led to considerable anxiety and pushback from workers.

The recent protest from Hyundai's workforce highlights the growing tension between automakers’ technological advancements and employee job security. Workers demand that no robots should be introduced without agreements that protect their jobs. This situation places pressure not just on Hyundai, but also on the entire automotive industry, particularly German competitors who must respond to these changes while considering the repercussions for their workforce and production strategies.