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Von der Leyen Calls for Europe-Wide Push on AI-Powered Cars to Revive Auto Industry

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European Commission President Ursula von der Leyen has urged the European Union to embrace an “AI first” strategy for the automotive sector, calling for a coordinated effort to develop self-driving cars made in Europe. Speaking at Italian Tech Week in Turin, the continent’s automotive capital, she argued that artificial intelligence could rejuvenate Europe’s car industry while enhancing road safety and sustainability.

“Self-driving cars are already a reality in the United States and China. The same should be true here in Europe,” von der Leyen said, emphasizing that “AI first” must also mean “safety first.” Her comments reflect growing concern in Brussels about the competitiveness gap between European automakers and tech-led rivals abroad, particularly in the U.S. and China, where AI-driven mobility is advancing rapidly.

Von der Leyen proposed creating a network of European cities to serve as autonomous vehicle pilot zones, noting that 60 Italian mayors have already expressed interest in joining the initiative. She pledged EU support for vehicles “made in Europe, and made for European streets,” positioning AI innovation as a cornerstone of industrial revival and regional independence.

The announcement comes amid intense pressure on Europe’s automotive sector, which employs millions of workers and faces simultaneous demands to decarbonize and digitize. Von der Leyen argued that AI-driven transport could reduce congestion, connect rural communities, and preserve jobs by enabling a new ecosystem of European-designed mobility technologies.

Also speaking at the event were Amazon founder Jeff Bezos, Ferrari and Stellantis Chairman John Elkann, and other global technology leaders—highlighting the deepening link between Silicon Valley innovation and Europe’s manufacturing transformation.

“The future of cars—and the cars of the future—must be made in Europe,” von der Leyen concluded, framing AI not as a threat but as the engine of Europe’s next industrial renaissance.

Stellantis and Mistral AI Deepen Partnership to Accelerate AI Integration

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Carmaker Stellantis (STLAM.MI) and French artificial intelligence firm Mistral AI announced an expansion of their partnership to accelerate AI adoption across Stellantis’ global operations. The announcement was made during the Italian Tech Week in Turin on Wednesday, highlighting the companies’ shared vision of integrating AI into every aspect of automotive production and business management.

The two firms have already been collaborating for the past 18 months on pilot projects exploring the use of AI in vehicle manufacturing, logistics, and customer experience. The new agreement introduces two dedicated platforms — Innovation Lab and Transformation Academy — aimed at scaling these initiatives across Stellantis’ global business.

Two New Platforms to Drive AI Adoption

  • Innovation Lab: Will focus on deploying AI solutions in sales, marketing, and aftersales operations, with the goal of personalizing customer interactions, improving dealership efficiency, and optimizing service networks.

  • Transformation Academy: Will develop AI-driven tools for core production and operational processes, including quality control, supply chain optimization, and predictive maintenance.

According to the joint statement, the collaboration will allow Stellantis to “improve customer service, increase productivity, and enhance data-driven decision-making.” The companies also emphasized that their partnership reflects the strategic importance of AI in transforming the automotive industry, from vehicle design and production to customer engagement.

Stellantis — parent company of brands such as Peugeot, Fiat, Jeep, and Citroën — has made digital transformation a key pillar of its Dare Forward 2030 strategy, which seeks to turn the automaker into a more agile and technology-driven organization.

Tesla’s Sales Rise in Parts of Europe but Pressure Mounts From Rivals

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Tesla recorded a modest rebound in several European markets in September, buoyed by sales of its updated Model Y, but analysts warn the U.S. automaker faces mounting challenges from both European and Chinese competitors amid an ageing product lineup.

According to local industry data released Wednesday, Tesla’s sales rose in France, Denmark, Norway, and Spain, with the Model Y emerging as Denmark’s best-selling vehicle. However, new car registrations fell in Sweden and the Netherlands—the latter marking its ninth consecutive monthly decline.

Despite recent gains, Tesla’s broader European performance remains weak. Between January and August, Tesla’s sales fell 42.9% year-on-year in the European Union and 32.6% across Europe overall, even as the region’s total EV sales jumped 24.8%.

Matthias Schmidt of Schmidt Automotive Research described the September uptick as “a bottoming out of the downward trend rather than any real signs of an expected uplift.” He said an affordable Model Y variant, expected in 2026, could help, but Tesla’s prospects remain “tough in a more competitive market environment.”

Once dominant in Europe, Tesla now faces an influx of new EVs from Volkswagen, BMW, Renault, and Chinese players like BYD, which outsold Tesla in the EU in August for the second time this year.

The automaker’s reputation has also been affected by political backlash against CEO Elon Musk, whose support for Donald Trump’s re-election campaign and European far-right parties has alienated some consumers.

Andy Palmer, chairman of Electric Vehicles UK, said Tesla is still “a big fish, but the pond is now full of serious competitors.” Unless it refreshes its range soon, he warned, “it will keep losing market share.”

Performance varied sharply across Europe in September:

  • France: +2.74% year-on-year

  • Denmark: +20.5%, with the Model Y leading sales

  • Norway: +14.7%, with Model Y and Model 3 ranking top two

  • Spain: +3.4%, boosted by a 60% surge in Model Y registrations

  • Sweden: –64% year-on-year, though higher than August levels

  • Netherlands: –48%

Analyst Andy Leyland of SC Insights said Tesla’s biggest challenge lies ahead: “Chinese automakers are rapidly building distribution networks in Germany, the UK, and France. It will be critical to see whether Tesla can still compete.”