Amazon, Stellantis team up on auto software, delivery vehicles

Delivery vans parked outside the package pick-up and returns area of an Amazon fulfillment center in Denver, Colorado.

Delivery vans parked outside the package pick-up and returns area of an Amazon fulfillment center in Denver, Colorado. Inc. is partnering with Stellantis NV to develop software with the carmaker and agreed to buy a new electric delivery van.

The maker of Jeep, Chrysler and Fiat brands will work on digital technology with the e-commerce giant and use its cloud services, according to a joint statement Wednesday. Amazon will also be the first commercial customer for the new Ram ProMaster electric delivery vehicle due in 2023.

“We will create the foundation for Stellantis to transform from a traditional automaker into a global leader in software-driven development and engineering,” Amazon Chief Executive Officer Andy Jassy said in the statement.

The announcement at the CES consumer tech show in Las Vegas comes after Stellantis last month outlined plans to generate about 20 billion euros ($23 billion) in extra revenue from software-driven features in its vehicles by the end of the decade. The deal with Amazon adds another partner to a roster that already includes Foxconn Technology Group, Waymo and BMW AG to build three new tech platforms by 2024.

Infotainment Focus

On Wednesday, Stellantis and Amazon said they will work on software solutions for the digital cabin platform called STLA SmartCockpit starting in 2024. The technology will focus on infotainment and be added to EVs equipped with autonomous features as the industry shifts away from conventional motors.

Stellantis declined to say how many all-electric Ram models that have been co-developed with Amazon would be supplied. Since 2018 the automaker has delivered “several tens of thousands” vehicles to the company, software head Yves Bonnefont said on a call with reporters.

Stellantis’s focus on revenue from software downloads and updates for services like navigation systems and maintenance shows how computer code is fast becoming the next battleground. The Amsterdam-based manufacturer has said it’s aiming for “tech industry margins” from selling software.

Read more: Stellantis Joins Battle with Silicon Valley for Software Talent

Overall, Stellantis plans to spend 30 billion euros by mid-decade on electrification and software.

–By Tara Patel (Bloomberg)

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