Amazon (AMZN, Financial) and Stellantis (STLA) have decided to gradually terminate their collaboration on developing in-car software, known as the SmartCockpit project. This initiative aimed to enhance driving experiences and automotive technology but encountered challenges similar to those faced by other traditional car manufacturers trying to partner with Silicon Valley for complex software solutions.
Despite the end of this particular project, both companies affirm that Stellantis remains an important partner for Amazon, with ongoing collaborations in other areas. Initially announced in 2022, the partnership aimed to create features that personalize the driving experience, positioning vehicles as extensions of the home. However, Stellantis struggled to compete effectively with companies like Tesla (TSLA) and BYD in the automotive software domain. The company's stock has also been under pressure, having declined around 40% due to poor sales, particularly in North America.
The collaboration with Amazon was intended to showcase a model for promoting the tech giant's services to more car manufacturers. Despite this, Stellantis will continue to use Amazon's AWS cloud services and integrate Alexa into some vehicle models, potentially developing SmartCockpit on other operating systems like Google's Android platform.
