As artificial intelligence and advanced software redefine the automotive world, European automakers are growing dangerously dependent on U.S. and Chinese technology for critical computer hardware and cloud infrastructure. Georges Massing, a key executive at Mercedes-Benz leading the company’s automated driving efforts, delivered a blunt message at an industry conference in Berlin: Europe must act quickly or risk losing its edge.
This article examines why Europe’s car industry finds itself at a crossroads, what’s fueling the reliance on foreign tech, and the urgent steps experts say are needed to secure the region’s future in next-generation mobility.
Europe’s Digital Deficit: No Chips, No Cloud, No Choice
Automakers worldwide are locked in a race to integrate ever-more powerful computing into electric vehicles. Leaders like Tesla and China’s BYD have surged ahead by developing their own software ecosystems, leaving European brands to search for tech partnerships beyond their borders. The reason is simple: Europe currently lacks high-performance computer chips and cloud platforms capable of training and running the complex AI models that drive automation and advanced driver assistance systems.
“We have in Europe neither a cloud nor a hardware that can train these models,” Massing said, pointing out that even essential components like lidar sensors are made almost exclusively in the U.S. and China.
Partnerships and Catch-Up Moves: A Risky Path
Struggling to keep up, Europe’s biggest names are forming alliances across the Atlantic and in Asia. Volkswagen, after years of delays with its own software division, is now working with California-based Rivian and China’s Horizon Robotics. Mercedes itself has invested in Momenta, a Chinese AI startup, to strengthen its automated driving systems.
But these partnerships come with risks—political, commercial, and even security-related. If supply chains tighten or governments impose new restrictions, Europe could find itself unable to deliver the high-tech vehicles its customers increasingly expect.
Calls for European Tech Sovereignty Grow Louder
The reliance on foreign tech isn’t lost on Europe’s policymakers, who have been urging local industry to develop alternatives. Building domestic capability in high-performance chips, cloud computing, and AI is seen as vital not only for economic competitiveness but also for reducing security vulnerabilities and supply disruptions.
“I see few European initiatives that are investing in this hardware, in high performance computers for the car,” Massing observed, urging urgent action from both industry and government.
Will Europe Build Its Own Digital Engine?
For now, Europe’s auto sector remains a powerhouse in traditional engineering—but the ground is shifting. As vehicles become as much computers as machines, the ability to control software, chips, and data infrastructure will determine who leads and who follows. Without major investments in its own digital backbone, Europe’s car industry risks being locked out of tomorrow’s innovations—or forever playing catch-up to Silicon Valley and China.
