Wednesday, September 28

Amazon and Stellantis partner to launch smarter cars and cleaner trucks

The deals expand Amazon’s efforts to gain a stronger foothold in the transportation industry and could help Stellantis close the gap with Tesla Inc in developing cars with sophisticated software-driven, cloud-connected infotainment tools.

The deals, announced on the sidelines of the CES technology conference, are broad, covering software and hardware. The two firms said they will work together to develop software for the “digital cockpit” infotainment systems in Stellantis vehicles, which will start rolling out in 2024.

Stellantis said it will use Amazon’s Alexa technology for voice-controlled functions, “navigation, vehicle maintenance, e-commerce marketplaces and payment services.” Amazon will also help Stellantis speed up the development of new digital products and “upskill Stellantis’ global workforce.”

Stellantis and other established automakers are struggling to match Tesla’s ability to quickly roll out new features in its vehicles and revenue-generating subscription services using cloud software.

As part of the partnership, Stellantis will use Amazon as its “preferred cloud provider” to provide the mobile network and computing power that future vehicles will need.

As part of what Stellantis called a separate deal, Amazon will be the first customer for the automaker’s new line of electric delivery vans, due to launch in 2023.

In May, Stellantis agreed with iPhone assembler Foxconn to create a joint venture to supply technologies to the auto industry.

By Joseph White and Gilles Guillaume, Reuters agency