What’s really holding Europe’s automotive industry back?

When people discuss the future of the automotive industry in Sweden and Europe, the conversation often revolves around technology. Topics like AI, software-defined vehicles, electrification and autonomous mobility. And these topics are important. But after spending a day with more than 200 leaders, experts and decision-makers across the automotive industry at Business by the Docks in Gothenburg, I left with a different reflection. That Europe’s greatest challenge may not be innovation. It may be execution.
 
We already know what needs to be done
At Business by the Docks, we gathered to discuss mainly one question: How can Europe and Sweden remain competitive towards 2035? The discussions covered everything from AI adoption and software platforms to industrial policy, talent, cybersecurity and infrastructure. When asked what’s currently missing most in Europe’s automotive strategy, a majority of participants pointed to one thing: Speed of execution. Not more ideas, visions, or strategies.

I think this should make us pause. Europe possesses world-class engineering capabilities, leading research institutions, strong industrial companies and some of the world’s most advanced automotive ecosystems. Gothenburg alone is home to a unique combination of OEMs, technology companies, startups, academia and public-private collaboration. We have all the ingredients in place. The question is whether we can move fast enough.

We have to un‑learn, and learn, faster than everyone else
One of the conclusions from the first panel discussion during the event was that competitive advantage is increasingly created after products reach the market. That means that organisations with the best plans might not be the most successful, but the ones that can deploy, adapt, improve – and discard outdated assumptions – faster than their competitors. This points to a fundamental shift. For decades, success has been built on long development cycles and carefully planned releases, where accumulated knowledge was an advantage in itself. Today, value is created through continuous learning, but just as importantly, through the ability to un‑learn.

Because the reality is that we already know a lot. The challenge is that parts of what we know were built for a different era. If we only add new knowledge on top of old mental models, we risk slowing ourselves down rather than accelerating. This doesn’t only apply to software and AI, but to organisations as a whole. The true competitive edge may not be the ability to learn more than others, but to let go of what no longer works faster and more deliberately.

The AI challenge is different now
Another recurring theme was AI. But unlike many industry discussions, the conversation was not about future possibilities, but about implementation. The challenge isn’t understanding what AI can do, but how to operationalise it. How do we deploy trustworthy systems, validate outcomes, scale solutions across organisations, and generate measurable business value? If you’re able to answer these questions first, you’ll probably have a significant advantage.

Collaboration is becoming a strategic capability
Perhaps the most encouraging insight from the day was that participants repeatedly identified collaboration as one of Europe’s greatest strengths. Not despite complexity, but because of it. Future competitiveness will increasingly depend on ecosystems rather than individual organisations. And no company possesses all the capabilities required to lead in AI, software, mobility, cybersecurity, sustainability and customer experience simultaneously. We have to combine strengths across industries, organisations and disciplines, and in that regard, Gothenburg has a unique position. Few regions can match its combination of industrial heritage, technical expertise, entrepreneurial ambition and collaborative culture. That’s something we shouldn’t underestimate.

The make-or-break decade starts now
Business by the Docks was never intended to produce all the answers. But it did reveal a remarkable level of alignment. Across audience polling, expert panels and participant conversations, the same themes surfaced over and over:
– Speed matters more than ever.
– AI must move into operations.
– Ecosystem collaboration is a competitive advantage.
– Transformation starts with leadership.
– Openness and resilience must go hand in hand.

When the automotive industry is now entering a make-or-break decade, the technology will matter, and the strategy. But I think the biggest differentiator will be who can turn ideas into action fastest. That’s the question Europe needs to answer.