A Source of Industry Inspiration: Inside Škoda Auto’s Manufacturing Transformation

A Source of Industry Inspiration: Inside Škoda Auto’s Manufacturing Transformation

Interview with Andreas Dick, Member of the Board for Production & Logistics at Škoda Auto

Škoda Auto, a Volkswagen Group brand, was founded in 1895—making it one of the oldest car manufacturers still in operation today. This year, Škoda celebrates its 130th anniversary, a milestone that honors not only its heritage but also its continued commitment to innovation.

Over the decades, Škoda has evolved from a company rooted in tradition into a leader in digital transformation. Nowhere is this more evident than in its production and logistics operations, which have long embraced automation and are now rapidly adopting cutting-edge digital and AI technologies.

To understand how this global automaker is accelerating its digital shift—while equipping its workforce to thrive in a new era—Jan Burian, global manufacturing industry analyst, spoke with Andreas Dick, Member of the Board for Production & Logistics at Škoda Auto.

Dick brings nearly three decades of experience within the Volkswagen Group. He began his career in production in Wolfsburg and has since held leadership roles across Mexico, China (Changchun and South China), and Germany (Emden). He oversaw the construction of one of Volkswagen’s largest plants in China and served as Board Member for Technology at a major joint venture, managing production, logistics, technical development, and product strategy. Notably, he spent the entire COVID period in China, gaining a unique perspective on one of the world’s most dynamic automotive markets. Since September 2023, he has served on Škoda Auto’s board.

1. Market Disruption & Global Landscape

– The automotive industry is undergoing its biggest disruption since its inception –

What is your perspective on the current state of the market, especially considering the disruptions?

We’re experiencing the most profound transformation in the automotive industry since the invention of the car. For decades, we’ve seen continuous improvement—refinements to combustion engines, better fuel efficiency—but the basic concept remained unchanged and predictable. Today, predictability is gone. We’re witnessing a fundamental shift from combustion to electric drivetrains, massive changes in vehicle electronic architecture, and deep integration of digitalization and artificial intelligence. These developments are reshaping not only the product but also the way we manufacture cars.

How does geopolitics affect the industry?

Geopolitical instabilities disrupt the landscape. Now, we’re seeing increasing technological tension between the U.S. and China, which risks splitting the global tech ecosystem. This makes long-term planning a lot more difficult.

You’ve spent many years in China. How do you see technology adoption there?

China is developing its own parallel technological infrastructure—companies like Huawei, DiDi, and DeepSeek are building comprehensive ecosystems. Global car manufacturers must navigate these distinct environments.

2. Digital Technology & AI in Operations

– AI as a cornerstone of future operations –

How does Škoda approach AI implementation compared to other regions?

We have a motto: “No process without AI.” AI enables significant productivity gains. It helps us process complex data, discover correlations, and generate predictions using self-learning systems and large language models.
It strengthens our organizational intelligence—helping us make smarter decisions across functions.

What’s your approach to IT collaboration in this transformation?

The first step is building internal competence. Many of our staff now create their own Power BI dashboards or write Python code. This self-sufficiency is key. For larger solutions, we collaborate closely with IT to ensure scalability and quick successful integration.

Digital Twins and Emerging Technologies
Are you leveraging digital twins?

Absolutely. Digital twins help us simulate production changes before implementation. If we’re integrating a new car model, we can program most of it in the digital twin, minimizing production downtime.

We also simulate logistics, energy flows, air pressure—building a complete digital twin of the factory, not just the production line.

What’s your view on humanoid robots?

Interesting technology, but I don’t see widespread use in factories anytime soon. Humanoid robots aren’t optimal for most industrial tasks, wheels outperform legs. These robots may be more relevant in healthcare or consumer-facing roles.

Looking 20 Years Ahead
Will the factory of the future look different?

Yes. We’ll see increased automation and more intelligent logistics. Cars will become active participants in the production process. For example, a car detecting an anomaly might drive itself to a repair station.

3. People, Skills & Culture

– Lifelong learning is the most critical skill –

What do you tell students or young professionals about preparing for the future?

People often ask me, “What’s the most important skill I need to succeed?” My answer: the ability to learn continuously. What you’re learning now might get you your first job, but in five years, it could be irrelevant. The mindset of lifelong learning is crucial.

This applies to our factory workers too. In the past, someone could do the same job for 30 or 40 years. That era is over. The product and technology are changing rapidly.

Everyone must learn constantly.

Is Europe lagging behind in digital adoption?

Yes, to some extent. China is far more digitalized at the societal level. In my four years there, I never used physical money. Not even credit cards – only digital payment services. In China, there are even company fridges with face recognition, automatically deducting your purchases from your salary. If people experience this in daily life, it’s easier to adopt digital tools at work.

Upskilling for the AI Era
How do you ensure your workforce keeps up with digital and AI tools?

We are running several upskilling programs. We offer basic training in digital and AI tools and promote hands-on learning. In our production areas, we have “digital corners” where workers can experiment with 3D tools and AI-driven solutions.

We’re also implementing a Production Co-Pilot system that allows users to ask questions like “What’s tomorrow’s production program?” or “How many cars are scheduled?” Previously, this required digging through paperwork. Now, we’re building a chatbot that will alert maintenance staff to —potentially challenging situations before they occur—based on large language models. It even recommends likely causes and suggests first steps for troubleshooting.

This kind of intelligent automation is something I brought back from China, where also for example low-cost, self-learning camera systems have already been widely adopted.

4. Manufacturing, Engineering & Competitiveness

– Disruptions in manufacturing and engineering talent –

Are you rethinking how cars are manufactured?

Yes. We’re monitoring emerging trends like aluminum giga casting. This also affects how we design future cars. Another important field are the changes in the electronic architecture of the cars and what that means for the production of the future.

We’re adapting, but without compromising on safety and reliability.

Do you believe Europe is competitive long-term?

Yes, but acting decisively is key. We have strong engineering talent, but we need to further accelerate digital transformation and become more agile. Energy costs are a shared challenge, even more so regulation. We need long-term regulatory clarity because automotive investments are always long-term.

Another challenge is the shortage of engineers. While in India and China we see hundreds of thousands annually, Europe is falling behind. That’s why I enjoy engaging with universities—our industry needs to keep attracting young talents.

5. Leadership & Inspiration for Global Peers

– Advice to global operations leaders –

What advice would you give to your peers managing global operations?

Stay curious. Be open to new technologies. Look outside your own industry and geography. I take my management team to China each year to visit tech leaders, learn what’s happening, and understand the pace. We’ve also studied India closely.

You must stay ahead of the wave, not follow it.

As we wrap up, what message would you like to share?

We are in the midst of a marathon race. I firmly believe in the future of the European automotive industry, but success is not guaranteed. We must act decisively, adapt quickly, and embrace change—together.

About the author

This article was written by Jan Burian, a global manufacturing industry analyst and author. His expertise spans digital transformation, management, leadership, and the geopolitical influences shaping manufacturing and global supply chains.

 

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