The Center for Automotive Research (CAR) and Rockwell Automation have released a joint report outlining the automotive industry’s transition into a new phase of smart manufacturing adoption, driven by the integration of artificial intelligence (AI) and advanced automation.
The white paper, titled Smart Manufacturing in the Automotive Industry: Deployment and Impact, draws on proprietary data from Rockwell Automation’s 11th Annual State of Smart Manufacturing Report. The research shows that industrial automation, machine learning (ML), and AI are reshaping operations across the automotive, tire, and battery sectors, enabling companies to manage increasingly complex production environments, persistent warranty pressures, rising costs, and global competition. These technologies are also supporting reshoring efforts by enabling more cost-competitive operations in tight labor markets.
According to the report, automakers and suppliers already operate with highly automated body, paint, and welding processes. The industry’s focus is now shifting toward areas that have historically been more difficult to automate, such as electronics assembly, validation, production coordination, and logistics. Within existing operations, AI and ML are being used to optimize predictive maintenance, inspection accuracy, and system throughput.
“What is changing now is how manufacturers use AI and data to manage increasing complexity, improve decision-making, and create competitive advantage,” said Edgar Faler, senior mobility analyst and strategy lead, CAR. Faler added that companies that move faster are beginning to realize measurable advantages.
The report’s data shows quantifiable results in selected applications, including reductions of up to 50% in unplanned downtime, improvements of approximately 5% in overall equipment effectiveness (OEE), and throughput gains of 5% to 7% through real-time production analytics.
“Manufacturers are being asked to do more with less while managing greater complexity,” said James Glasson, global vice president of Industry for automotive, tire, and advanced mobility, Rockwell Automation. “The combination of automation and AI is helping teams identify issues earlier, reduce downtime, and improve performance across plants. The difference now is how effectively companies scale these capabilities.”
