Auto leaders face “reality gap” in transformation

A new report from Ennis & Co has revealed a widening gap between ambition and execution across the automotive sector, warning that transformation efforts risk stalling unless leadership capability and organisational readiness improve.

The study, Torque & Truth, draws on in-depth interviews with 52 senior automotive leaders and paints a candid picture of an industry under pressure. While companies are aligned on strategic direction, particularly around electrification, digitalisation and evolving mobility models, the day-to-day reality of delivering that transformation is proving far more complex.

According to the report, leaders are navigating a landscape defined by sustained pressure, shifting expectations and increasing operational constraints, with many highlighting the tension between bold ambitions and the practical limits of their organisations.

“Torque & Truth is the start of a conversation about the reality of leading automotive organisations through evolution at unprecedented speed,” she said. “It brings together the day-to-day experience of leaders navigating extraordinary complexity. It highlights where the industry is going and what it takes to lead by exploring six key topics raised by leaders and how they are tackling them.”

Six key challenges shaping the sector

The report identifies six recurring themes that are holding organisations back:

Strategy is clear – but execution is not: While 98% of leaders say their strategic direction is well defined, confidence drops sharply when it comes to delivery. Barriers such as governance, talent gaps and slow decision-making are undermining progress.

Speed is the new competitive edge: Leaders increasingly view speed – not strategy – as the defining advantage. Delays in decision-making are now seen as a strategic risk, particularly as new entrants reshape expectations and compress timelines.

Cost pressure is changing behaviour: Persistent cost challenges are forcing leaders to prioritise more ruthlessly, focusing on fewer initiatives and making sharper trade-offs in how resources are deployed.

AI remains a priority – but not a strength: Although widely recognised as critical, artificial intelligence is not yet embedded in everyday operations. Legacy systems, competing priorities and skills gaps continue to hinder progress.

Leadership pipelines are under strain: Confidence in succession planning is low, with many leaders warning that traditional career paths have not prepared the next generation for the pace and complexity of modern leadership roles.

Partnerships are essential – but difficult: Reliance on third-party partners is growing, yet collaboration is often slowed by misaligned incentives, governance challenges and incompatible ways of working.

Behavioural barriers to change

Beyond structural challenges, the report highlights deeper behavioural patterns influencing leadership effectiveness. In partnership with Lumina Learning, Ennis & Co analysed how automotive leaders think and make decisions.

The findings suggest leaders excel in structured thinking, control and clarity—but are less naturally inclined toward adaptability, experimentation and rapid iteration. This imbalance may help explain why organisations that are strategically aligned still struggle to move quickly.

Stevie Fine, Managing Director at Inspire and Lumina Learning Partner, said behavioural insight is critical to unlocking progress.

“The patterns we see are behavioural as much as operational. Leaders have real strengths in rigour and purposeful decision-making, but those same strengths can limit adaptability when speed and experimentation are required,” he said.

The report concludes that the automotive sector is not lacking vision but must now focus on execution. Strengthening leadership capability, improving organisational agility and embracing new ways of working will be essential to turning strategy into measurable outcomes.

As transformation accelerates across electrification, software and new mobility models, the message from Torque & Truth is clear: success will depend less on knowing where to go, and more on how effectively leaders can get there.