In a joint statement Amazon.com Inc and Stellantis NV said, they have agreed to collaborate to develop cars and trucks which will feature Amazon software in the dashboards, and deploy electric vans made by Stellantis on Amazon’s delivery network.
The development marks Amazon’s efforts to gain a larger foothold in the transportation industry and could help Stellantis close the gap with Tesla Inc in developing vehicles with software-powered cloud-based data processing intensive infotainment features.
With the news reaching the market, Stellantis shares were up more than 3% in Milan.
Both companies said, they will collaborate to develop software for the “digital cockpit” infotainment systems of Stellantis vehicles which will be launched in 2024.
Stellantis said it will use Amazon’s Alexa technology for voice controlled features, “navigation, vehicle maintenance, ecommerce marketplaces, and payment services.”
In a conference call, Stellantis Chief Software Officer Yves Bonnefont said, its use of the Android operating system will “evolve over time.”
Amazon will help Stellantis speed up development of new digital products and “upskill Stellantis’ global workforce.”
The development sees Stellantis trying to match Tesla’s ability to rapidly deploy new vehicle features and revenue-generating subscription services using software delivered over the air.
As part of the partnership, Stellantis will use Amazon as its “preferred cloud provider” to provide the mobile network and computing power future vehicles will need.
In a separate agreement, Stellantis said Amazon will be the first customer for its new line of electric delivery vans that are scheduled for launch in 2023.
Amazon has an existing agreement with electric vans from startup Rivian Automotive to buy up to 100,000 electric vans.
In May 2021, Stellantis had agreed Foxconn to create a joint venture to supply in-car and connected-car technologies across the auto industry.