European carmakers have voiced concerns over the European Commission’s recent proposals aimed at reducing the bloc’s reliance on US technology, warning that the measures could lead to higher costs and smaller market opportunities for the industry. Volvo Cars and Stellantis, two of the region’s leading manufacturers, have highlighted the potential economic impact of the EU’s “tech sovereignty” package, which seeks to foster homegrown innovation and introduce stricter digital public procurement requirements.
The Commission unveiled the package last month, proposing a four-tier certification system for public officials to assess technology according to its vulnerability to foreign influence. While the framework does not explicitly exclude US companies or impose sovereign ownership rules on private firms, many European corporations fear that an expanded sovereignty agenda might disadvantage them in the short term.
Håkan Samuelsson, chief executive of Volvo Cars, argued that imposing barriers on American technology would ultimately harm Europe, stating that the continent “would be the only loser.” He emphasized the importance of allowing competition to shape the market, welcoming European alternatives to US technology if developed under free-market conditions. Ned Curic, Stellantis’s chief technology officer, echoed these concerns, noting that the proposals would increase expenses for the industry and could result in shrinking markets amid growing investment demands in electric vehicle production and global competition, particularly from China.
The industry reliance on US technology is significant, spanning chips, artificial intelligence systems, and cloud computing services essential for the development of modern, software-defined vehicles. These vehicles integrate complex computer systems to control batteries, performance, safety features, and future autonomous driving capabilities. At the same time, carmakers face restrictions on the use of Chinese technologies, intensifying their dependence on American suppliers.
The Commission maintains that the tech sovereignty package is intended to boost investment, innovation, and scale within Europe while remaining open to trusted international partners. Officials argue the strategy aims to strengthen resilience in the digital sector amid geopolitical uncertainties.
The push for digital sovereignty has gained urgency partly due to concerns about potential “tech decoupling” triggered by US foreign policy under former President Donald Trump. Recent actions, such as the US government blocking the export of advanced artificial intelligence models developed by Anthropic on national security grounds, have further heightened these fears.
Samuelsson called for closer integration between the US and Europe, suggesting that collaboration is crucial as tensions rise in the technology race dividing China and Western countries. He advocated for Europe to align more closely with the American industry to jointly address the challenge of Chinese technological expansion.
While European regulators promote the sovereignty package as a way to build a stronger and more self-reliant digital ecosystem, carmakers remain wary about its immediate economic ramifications, underscoring a complex balance between strategic autonomy and the realities of a globally interconnected technology supply chain.