Digitalization and automation in the automotive sector: the manifold role of lean production

The increasing adoption of Industry 4.0 technologies in the manufacturing industry and the recent upsurge of Artificial Intelligence challenge traditional production models, especially in the automotive sector, where the transition to electrical mobility is underway. The interdependences between work organization models and new technologies tend to be underestimated in the economic literature, mainly focused on identifying the potential job displacement effect and the demand for new skills due to robots and AI. Assessing the degree of concrete diffusion of advanced automation, new digital technologies and big data in the workplace is complex. The analysis of business and innovation strategies pursued by companies must account for the heterogeneity stemming from production specialization, managerial culture, position in the supply chain, and national and local institutions to understand the emerging varieties of organization and technological mix. The paper addresses the issue of the unfolding of a “lean 4.0” scenario, according to which the lean organization model – nowadays dominant in the automotive sector - can be efficiently combined with I4.0 technologies. New evidence is collected through a qualitative analysis of four automotive companies in Romania and Spain, two peripheral countries that witnessed a broad reconfiguration of their automotive sector in recent years. The findings from the field study offer a critical contribution to how I4.0 technologies and lean models are currently adopted in the automotive sector, highlighting some key issues. First, we identify different patterns of implementation of automation and digitalization, usually confused as a single entity but concretely implemented by companies for distinct objectives and with a different degree of diffusion. Second, we provide compelling evidence on the possible ambiguity in adopting lean practices, especially those requiring a more direct involvement of workers in decision-making, collaboration and learning. Third, by analyzing OEMs and suppliers, the research highlights relevant differences in how production specialization and value chain positioning can favour or hinder the implementation of specific lean regimes.