Amazon's in-car software deal with Stellantis fizzles
CBC
Amazon's deal with Stellantis to create in-car software that the companies hoped would transform the driving experience while bolstering their vehicle-tech credentials is "winding down," the companies confirmed after a Reuters inquiry.
The Stellantis SmartCockpit project, which would rely on Amazon's in-car technology, is the latest example of traditional automakers struggling to work with Silicon Valley to introduce more sophisticated vehicle software.
Stellantis remains a valuable partner for Amazon, and the companies "continue to work together on a range of initiatives," they said in a statement, adding that the decision to end their joint work on SmartCockpit was mutual.
The project between the Seattle tech giant and the maker of Jeeps, Peugeots and Alfa Romeos was hailed by the CEOs of both companies when it was announced in 2022.
The two planned to develop features that would make the cars feel like an extension of home by detecting the driver and personalizing settings such as the thermostat, navigation and even home automation, like turning on lights.
Stellantis had hoped Amazon's software expertise would help the global automaker in the race against companies like Tesla and China's BYD. And for Amazon it was meant to serve as a prototype for a wider rollout to more automakers.
In a January 2022 press release, Stellantis's then-CEO Carlos Tavares said he hoped the partnership would help make the vehicles "the most wanted, most captivating place to be, even when not driving."
Tavares left the automaker abruptly last year, and the company on Wednesday named its North American chief Antonio Filosa as its new chief executive. Stellantis has been trying to revive its slumping stock, which fell about 40 per cent in 2024, amid disappointing sales, especially in North America.
Automotive software has emerged as one of the most important, and difficult, areas for legacy automakers to nail. Much of what modern cars do today is dictated by code, including the feel of the brakes, infotainment system, and advanced driving-assistance features such as automated steering for which automakers can charge subscription fees, unlocking significant revenue streams.
Ford recently axed its next-generation electrical architecture due to ballooning costs around the technology.
Reuters couldn't determine any singular reason the partnership on SmartCockpit ended. The companies said the shift "will allow each team to focus on solutions that provide value to our shared customers and better align with our evolving strategies."
Relative newcomers, like Elon Musk's Tesla, built electrical and software systems that can quickly deliver new features or fixes to customers at a lower cost to the company.
Traditional carmakers, including Volkswagen and General Motors, have struggled to master these systems on their own, and have been poaching talent from Silicon Valley or forming partnerships in an effort to reverse that trend.
Unlike Tesla which has very little complexity across its smaller lineup of vehicles, Stellantis manages dozens of models across 14 brands and a maze of global suppliers, increasing the challenges around implementing new software.
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