Fiat and Jeep owner Stellantis is making a bet on smaller, more compact electric vehicles in a bid to boost sales in Europe’s car market.
The venture, known as E-Car, will begin production in 2028 at the Pomigliano d’Arco plant in Naples, Italy.
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As Europe’s car industry struggles in the face of intensifying Chinese competition and Trump’s imposed tariffs, some industry experts expect the historic symbiosis between the automotive and defence is set to deepen. This shift comes at a time when Europe is preparing to ramp up its military investment in the face of global conflict, an increasingly volatile relationship with the U.S., and the fracturing of the NATO alliance following Trump’s invasion of Greenland earlier this year. Last year, EU President Ursula von der Leyen described 2025 as an “era of rearmament”, a trend which has only escalated with recent disruption in the Middle East.
One such automaker considering this dual-use approach is German automotive brand Mercedes-Benz, which announced on Friday that it would be open to exploring military use cases.
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Stellantis and Chinese electric vehicle brand Leapmotor are preparing to deepen their allegiance as both companies angle to expand their electric vehicle footprint across Europe.
The partnership began in 2023 when Stellantis purchased an approximately 21% stake in Leapmotor and launched a joint venture focused on selling and manufacturing Leapmotor vehicles outside of China. The companies now say they are exploring new ways to increase production efficiency while reducing manufacturing costs.
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The UK’s new car market registered unprecedented growth last month, expanding by almost a quarter, up 24%.
According to new data from the SMMT (the Society of Motor Manufacturers and Traders), the UK recorded 149,247 vehicles in April, the strongest growth in the sector since before the pandemic.
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According to the latest report from the Society of Motor Manufacturers and Traders (SMMT), the UK automotive industry could deliver a £4.6 billion injection to the UK economy by 2030.
The uplift is driven by the UK’s commitment to ban the sale of all new petrol vehicles by 2035, a decision that is pushing automotive manufacturers towards electric vehicles with prescriptive rule of origin laws. Much like EU content laws, the UK government will offer preferential trade conditions for cars that exceed a threshold for UK or EU manufactured content.
The SMMT forecasts that this strategy will increase demand for UK-made parts by 80% by 2030, providing considerable opportunities for investment and a healthy boost to domestic supply chains.
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It has been over a year since President Trump announced a sweeping suite of country-by-country tariffs on imported foreign goods. After many reversals, walk-backs, and changes of mind, some industries have emerged largely untouched by these unpredictable and, at times, erratic shifts in trade and foreign policy.
For industries that rely on steel, aluminium, or semiconductors—of which automotive is one—the story is different. Owing to Section 232, materials deemed critical to matters of national security are subject to Trump’s high and unwavering tariffs.
A year after “liberation day,” many OEMs are calling for a reappraisal of Trump’s stringent tariffs due to mounting pressure caused by aluminium supply disruptions. Among these is legacy automaker Ford, which, under the leadership of CEO Jim Farley, has been vocal in its opposition to import tariffs.
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Since war broke out in Iran on 28 February, global oil prices have soared to unprecedented highs. The spike follows disruption in the Strait of Hormuz, the world’s busiest shipping channel for crude oil.
As the global conflict unravels and the oil crisis intensifies, analysts are recognising a renewed interest in electric vehicles (EVs) as consumers attempt to shield themselves from the impact of rising energy costs.
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Jaguar Land Rover is once again grappling with disruption, as production at one of its key UK facilities is set to pause following a fire at a supplier site in Norway. The interruption will affect output of its flagship Range Rover and Range Rover Sport vehicles at the Solihull plant, with operations halted until April 8. This latest grievance represents a significant setback for the automaker in a two year period punctuated by disruption.
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The world’s richest man, Elon Musk, could soon have sway over the UK’s private energy sector after its subsidiary, Tesla Energy Ventures, received approval to operate as an electricity supplier in the United Kingdom. The licence, granted by the UK energy regulator, clears the path for the company to enter a market that has faced turbulence in recent years and rising concern among households over an ongoing cost-of-living crisis.
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The EU’s “Made in Europe” content laws are set to undergo an expansion, with countries like the UK and Japan included within Brussels’ manufacturing targets.
The European Commission said these adjustments would protect European manufacturers, and now those of allied nations, from ferocious Chinese competition.
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As corporations begin to embed AI into the ways they process data, make sales, and draft communications, many companies are also looking for ways to automate and implement AI in manufacturing processes, on factory floors, and to perform difficult or dangerous tasks that humans may not want or cannot do.
Automotive manufacturers are among the companies leading the charge in the physical AI space. Read more to find out how.
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On Thursday, Canadian Prime Minister Mark Carney unveiled a revised national automotive strategy that has set a brand new course for Canadian electrification. Announced against the backdrop of rising trade tensions and mounting pressure from U.S. tariffs, the plan represents a shift in how Ottawa hopes to guide the country’s transition to electric mobility.
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Germany has long held the title of Europe’s largest and most significant automotive market, with a rich history of manufacturing and vehicle production. As the birthplace of well-loved legacy brands such as Audi and Volkswagen, the automotive sector continues to make up a significant share of Germany’s overall GDP—around 5%.
It is perhaps this legacy that explains why Germany’s domestic brands continue to outpace international competition in electric vehicle sales, led by brands like Volkswagen—currently the country’s leading EV seller—followed by BMW.
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Germany is preparing to relaunch large-scale incentives for electric vehicles, signalling a concerted governmental effort to revive demand after last year’s slowdown.
The federal government plans to allocate around €3bn to a new support programme that will run from the beginning of this year until 2029, aiming to put roughly 800,000 additional low-emission vehicles on the road.
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Conversations around AI are dominating the tech and automotive industries as companies rush to integrate efficiency-boosting AI systems into their manufacturing processes. For many of us, our first introduction to AI is likely to have been through large language models like OpenAI’s ChatGPT or Google’s Gemini.
Now, in 2026, the industry is pivoting from a software-focused approach to a hardware-driven one, moving towards physical applications such as robotics and advanced automation. In this period of strategic change, the question remains: are automakers reading for the physical AI revolution?
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Tesla’s Chief executive Elon Musk has confirmed that the company will eliminate the one-time purchase option for its Full Self-Driving (FSD) package in the U.S., moving exclusively to a monthly subscription model beginning February 14.
The move illustrates the brand’s decision to lean heavily in to recurring revenue streams and subscription services—think X premium, launched in October 2023.
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A host of exciting developments came out of the Consumer Electronics Show (CES) held in Las Vegas last week.
Among the speakers was Ford’s chief EV, digital, and design officer, Doug Field, who laid out Ford’s roadmap for hands-free, eyes-off driving. Alongside this announcement, Ford revealed plans for an AI assistant and a new “vehicle brain” module.
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This week, the UK government announced its new Road Safety Strategy, the first in over a decade.
The government claims this new strategy will save thousands of lives on UK roads through a series of reforms, including a crackdown on drunk driving and mandatory eye tests for older drivers.
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The world’s leading AI chipmaker, Nvidia, has announced a new tech platform, Alpamayo, which promises to equip self-driving cars with “reasoning” capabilities.
Taking to the stage at Las Vegas’ CES, Nvidia’s CEO, Jensen Huang, laid out the next leg of the company’s AI roadmap, suggesting it is seeking opportunities to embed AI into physical hardware such as autonomous vehicles.
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Europe’s race to secure its electric vehicle future is increasingly centred on one question: how much of an EV should be made at home?
As Brussels prepares proposals to raise local content requirements for products such as cars and solar panels, senior figures from Europe’s emerging battery industry are voicing strong support, arguing that tighter rules are essential to counter China’s dominance in EV production and adjacent key technologies.
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