Strategic co-determination in business model development: An empirical analysis of the German automotive supplier industry in the twin transition

The twin transition in the automotive industry is driving profound changes for its suppliers. Their future viability and employment prospects are increasingly dependent on them actively reshaping their business models. Despite undergoing radical transformation processes, many automotive suppliers still lack future strategies. Where such reorientation initiatives do exist, they often overlook employment-related concerns. Consequently, trade unions and works councils are increasingly recognising the need to engage in business model development to safeguard jobs. However, co-determination actors have no formal decision-making power in this domain within the context of European industrial relations. This paper therefore explores the following questions: How does active participation by co-determination actors in business model development unfold and what role can they play? What challenges do co-determination actors face in the process, and what skills are they developing? Drawing on a cross-comparative analysis of three qualitative case studies in the German automotive supplier industry, the paper shows that active participation by co-determination actors is not only possible but can also be of considerable strategic relevance under certain conditions. The study’s examination of the challenges faced and the skills developed provides valuable insights for ongoing EU-level discussions on a “Just Transition” directive.