Amazon and Stellantis have announced a collaboration to create software for “digital cockpit” infotainment systems.
Amazon and Stellantis NV announced a collaboration on Wednesday to create cars and trucks with Amazon software in the dashboards, as well as to deploy Stellantis electric vans on Amazon’s delivery network.
The agreements strengthen Amazon’s ambitions to get a stronger presence in the transportation business and may assist Stellantis in closing the gap with Tesla in building vehicles with sophisticated, software-powered infotainment features linked to the data processing cloud.
In Milan, Stellantis shares were up more than 3%.
The agreements announced in connection with the CES technology show by Stellantis and Amazon, the online retailer and cloud computing powerhouse, are broad in scope, covering both software and hardware.
Amazon and Stellantis announced a collaboration to develop software for the “digital cockpit” entertainment systems of Stellantis automobiles, which will begin shipping in 2024. Stellantis plans to leverage Amazon’s Alexa technology for voice-controlled capabilities such as “navigation, car maintenance, e-commerce markets, and payment services.”
As established automakers vie with startups to electrify the world’s package delivery system, large e-commerce delivery fleet owners such as Amazon will be critical in deciding winners and losers.
During a conference call on Wednesday, Stellantis Chief Software Officer Yves Bonnefont stated that the automaker’s usage of Alphabet Inc’s Android software for vehicles will “develop over time.”
Amazon will also assist Stellantis in hastening the development of new digital products and “upskilling Stellantis’ global workforce.” Stellantis and other major automakers are scrambling to compete with Tesla’s capacity to rapidly deploy new vehicle features and revenue-generating subscription services via software distributed over the air.
Stellantis will employ Amazon as its “preferred cloud provider” as part of the collaboration to supply the mobile network and computing capability that future cars will require.
According to Stellantis, Amazon will be the first customer for Stellantis’ new line of electric delivery vehicles, which will be available in 2023. According to the companies, they intend to put thousands of Stellantis Ram ProMaster electric vans on the road each year.
Amazon previously agreed to purchase up to 100,000 electric vans from Rivian Automotive.
Stellantis and iPhone assembler Foxconn agreed in May to form a joint venture to deliver in-car and connected-car technology to the auto sector.