The Struggles of a Product Manager in the Automotive Industry’s Software Revolution

The Struggles of Product Managers in the Automotive Industry’s Software Revolution

Product managers (PMs) in the automotive industry are facing a growing set of challenges, particularly when it comes to integrating software into vehicles. As cars become increasingly reliant on software for features ranging from infotainment to autonomous driving, product managers are expected to lead the charge in innovation. However, many PMs are struggling to succeed in this environment due to a variety of structural and market factors, leaving the industry at risk of losing top talent.

Undercompensated and Undervalued

One of the biggest frustrations for product managers in the automotive space is the relatively low pay compared to other industries. While PMs in tech or finance often command high salaries for their expertise in software, those in the automotive sector find themselves earning less, despite the growing importance of software in vehicle development. This compensation gap is a major deterrent for skilled PMs who can easily move to industries that offer higher financial rewards and better career growth opportunities.

Moreover, in many traditional automotive companies, software is still viewed as secondary to hardware. Stakeholders and executives who come from mechanical engineering backgrounds often fail to grasp the complexity and importance of software, making it difficult for PMs to secure the resources and attention they need to innovate effectively. Product managers are expected to deliver cutting-edge software solutions, but without the proper backing, they are set up for failure.

The Stress of Job Insecurity and Post-Pandemic Layoff Fears

Post-pandemic economic uncertainties have only exacerbated the struggles for automotive product managers. Constant restructuring, cost-cutting measures, and the looming threat of layoffs create a climate where PMs are more concerned about job security than focusing on innovation. In this environment, PMs often spend their time worrying about their next role or applying for jobs elsewhere, instead of concentrating on leading product development.

This culture of insecurity breeds burnout, as PMs are forced to juggle their daily responsibilities with the ever-present fear of losing their jobs. For an industry that demands creativity and problem-solving to push forward in the software space, this is a major setback.

The Hardware-Software Tug of War

Product managers also face technical hurdles when it comes to integrating software into vehicles, especially when dealing with third-party hardware components that were never designed to be updated with new software. Many legacy systems in vehicles create a tangled web of hardware that is resistant to software updates, often leading to malfunctions or issues that are mistaken for software bugs but are actually rooted in hardware incompatibilities.

This constant battle with hardware limitations wastes the valuable time of PMs, who find themselves troubleshooting problems they cannot fix. Instead of focusing on innovation, they spend significant effort working around legacy systems or collaborating with suppliers to resolve compatibility issues. This is especially frustrating in an industry racing toward a software-defined future, as these outdated hardware systems slow down the pace of progress.

Global Competition: The Rise of Chinese Software-Defined Vehicles

Adding to the woes of PMs is the increasing competition from Chinese software-defined vehicles flooding the global market. These vehicles are developed with a software-first mentality, making them more adaptive and quicker to integrate new features. U.S.-based product managers, already dealing with the constraints of legacy hardware and internal resistance to software investment, find themselves struggling to keep up with these nimble competitors.

The influx of Chinese vehicles sets a high standard for innovation and speed, pushing U.S. PMs into a constant state of catch-up. With fewer resources and more restrictions, product managers face immense pressure to deliver innovative solutions, often without the tools or support necessary to meet these challenges.

Too Many Models, Too Many Variations

In addition to external competition, automotive product managers are burdened by the sheer number of vehicle models they are expected to manage. Unlike industries with a more streamlined product base, automakers often have numerous lines of cars, each with different hardware capabilities. This creates an overwhelming workload for PMs, who are expected to innovate across multiple vehicle platforms, each with its own set of challenges and limitations.

The result is a dilution of innovation. Product managers are spread too thin, juggling priorities for too many models, and are forced to compromise on both the design and functionality of software features. This hinders the kind of groundbreaking innovation that is needed to keep the automotive industry competitive in a rapidly evolving digital landscape.

An Industry at Risk

The automotive industry is at a critical juncture where software is becoming a defining feature of vehicles. Yet, product managers, who are supposed to be leading this transition, are being stifled by low salaries, lack of stakeholder understanding, job insecurity, legacy hardware issues, and global competition. Unless these barriers are addressed, the industry risks losing its best and brightest product leaders to sectors that are more agile, better funded, and more conducive to software-driven innovation. For automakers to stay relevant in the software revolution, they must rethink their approach to product management, provide better support, and streamline their focus—or risk being left behind.