Europe’s automotive sector faces growing risks as it becomes increasingly reliant on computer hardware and cloud services from the U.S. and China, according to Georges Massing, a leading executive at Mercedes-Benz. Massing, who leads automated driving projects at the German carmaker, highlighted the issue during an industry conference in Berlin on March 25.
“The more we move into AI, the more we are moving into a phase where we need a more efficient computer,” Massing explained, emphasizing that software is now a key factor setting electric vehicles apart. He noted that Tesla and Chinese manufacturers such as BYD are racing ahead with advancements in vehicle software and AI, forcing European automakers to form partnerships with Silicon Valley and Chinese tech firms to keep up with the competition.
European policymakers have repeatedly stressed the need to reduce dependency on foreign technology, arguing that it is vital for security and supply chain resilience. Yet, as Massing pointed out, real progress has been slow. “I see few European initiatives that are investing in this hardware, in high performance computers for the car,” he said.
Efforts to strengthen Europe’s position have included Volkswagen Group’s recent collaborations with Rivian Automotive in the U.S. and Horizon Robotics in China, aimed at speeding up electric vehicle development. Mercedes itself has invested in the Chinese AI startup Momenta to support its driver-assistance systems. Despite these moves, Europe still lacks homegrown leaders in core technologies like cloud infrastructure and advanced automotive chips.
Massing specifically mentioned the widespread use of lidar (light-detection and ranging) sensors in the industry, which are almost exclusively manufactured in the U.S. and China. “We have in Europe neither a cloud nor a hardware that can train these models,” he warned, underlining the urgent need for European investment in high-performance computing and cloud solutions to ensure the long-term competitiveness of the continent’s automotive sector.
