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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.

Zoox Opens Robotaxi Factory, Escalating Rivalry with Tesla and Waymo

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Amazon-owned Zoox has officially launched its first robotaxi production facility, signaling a major step toward commercializing its autonomous vehicle service and intensifying competition with industry leaders Tesla and Waymo.

Located in Hayward, California, the new 220,000-square-foot factory is capable of assembling over 10,000 robotaxis per year at full capacity. While Zoox has not disclosed its initial production figures, the move reflects its plans to scale significantly as it prepares for public ride launches.

The company is currently testing its fully autonomous, purpose-built robotaxis — uniquely designed vehicles with no steering wheels or pedals — in multiple U.S. cities. It expects to begin commercial operations in Las Vegas later this year, followed by expansion in San Francisco, where it is already operating in the SoMa (South of Market) neighborhood.

“Anticipated public demand and upcoming market entries justify this scale-up in production,” Zoox stated, hinting at more widespread deployments in the coming years.

Zoox’s entry comes at a pivotal moment in the robotaxi race:

  • Waymo, owned by Alphabet, already runs a mature driverless taxi service and is expanding across U.S. cities.

  • Tesla, led by Elon Musk, plans to launch its paid robotaxi service on June 22, using Model Y SUVs with self-driving software, and later a Cybercab—a futuristic, manual-control-free, two-seater vehicle.

Unlike Waymo’s retrofitted models and Tesla’s modified SUVs, Zoox’s vehicles are custom-built from the ground up, resembling compact “toaster ovens” and designed specifically for autonomous operations.

Still, all major players in the space face substantial hurdles. Regulatory constraints, safety concerns, and cost overruns have hampered progress toward full autonomy. Moreover, companies including Zoox, Tesla, and Waymo have been subject to federal investigations and recalls after incidents involving their autonomous systems.

Nevertheless, Zoox’s new production hub marks a bold bet that it can move from limited testing to mass deployment, turning science fiction into a scalable reality.