The digitalisation of logistics and assembly lines in the Portuguese automotive sector is reshaping manufacturing processes, work organisation and competence requirements. The research aims to assess the challenges and opportunities associated with these technological changes and their impact on workforce skills and organisational structures. Findings suggest that digitalisation is progressing unevenly across logistics and production, with logistics leading in automation while production struggles with legacy systems and high costs. The shift to alternative engines supports digitalisation, but significant workforce skill gaps in AI and digital systems remain a challenge. Companies are implementing internal training, yet outdated vocational programs fail to address Industry 4.0 needs. Rather than full automation, digitalisation is fostering new human-machine collaboration, requiring cooperation between AI specialists, managers, and workers. To ensure success, policymakers and industry leaders must prioritise workforce reskilling and align digital strategies with labour market realities.