With their recent announcement, automaker Stellantis has put a lot of chips on the table. They’re moving their entire in-car software ecosystem to Google’s Android platform, breaking their partnership with Amazon in the process. This acquisition further supports the company’s efforts to grow its connected vehicle portfolio. It’s intended to establish new streams of revenue outside of not as lucrative vehicle sales.
In December 2021, Stellantis announced an electric vehicle expansion plan so ambitious that it shocked the industry. They want their technology embedded in 34 million cars by 2030. The world’s largest car company, Toyota, wants to be the leader in automotive software. It has an ambitious objective of producing $22.5 billion in yearly revenue solely from this category. To meet these goals, Stellantis has rolled out a complex, multi-layered EV strategy that includes numerous strategic partnerships and technological advancements.
Initially, Stellantis entered into a collaboration with Amazon in 2019 to develop in-car software that would enhance the connected driving experience. The objective was to deploy connected and highly automated consumer-facing products and services across vehicles by 2024. Stellantis is making bold moves to stay ahead of the pace of change in the automotive world. For this new approach, they’ve decided to partner with Google.
Stellantis’ broader strategy encompasses three core components: developing advanced software capabilities, creating a robust underlying electrical architecture known as “STLA Brain,” and enhancing automated driving technologies through partnerships, including one with BMW for an automated driving platform called “AutoDrive.” These initiatives are built to address the reality of making sure Stellantis can be competitive in a very fast-paced changing market.
With this move Stellantis is furthering its position within the connected vehicle ecosystem. The firm’s been engaged with the likes of Foxconn, Waymo, Amazon and BMW, and in all 50 states. The company intends to leverage its in-car software to sell products and subscriptions directly to passengers and drivers, thus diversifying its revenue streams.
Stellantis has formally ended its partnership with Amazon. Despite the loss, the company feels reassured by their continued partnership with the country’s leading technology firm.
“Amazon remains a valuable partner for Stellantis, and the companies continue to work together on a range of initiatives,” – Stellantis
As Stellantis transitions to Google’s Android platform, it aims to enhance user experiences within its vehicles while exploring innovative solutions that align with consumer expectations. The company’s ambition to lead the industry as a software-first automotive company is clear from its strategic partnerships and technology investments.