Stellantis and Microsoft have announced a strategic partnership that will span five years. The collaboration aims to jointly develop artificial intelligence (AI), cybersecurity, and engineering capabilities. This move comes as Stellantis seeks to keep up with technology-focused competitors in the automotive industry.
The importance of software and data-driven services has grown significantly in the long-term strategies of automotive companies. This trend is especially prominent as Chinese automakers ramp up their efforts to attract customers both locally and internationally through the development of innovative features.
Legacy automakers have faced challenges in mastering software and technology independently. As a result, they are increasingly turning to partnerships with tech companies to benefit from their expertise and accelerate progress in these areas.
Ned Curic, Stellantis’ Chief Engineering and Technology Officer, highlighted the significance of the collaboration with Microsoft in propelling their AI initiatives across the enterprise. However, specific financial details of the partnership were not disclosed.
Stellantis has been actively engaging in tech partnerships to advance its software goals and enhance personalized experiences for drivers. The company has shifted its focus towards improving core vehicle sales and quality, leading to the discontinuation of some previous efforts, such as the reported winding down of the in-car software deal with Amazon.
The Stellantis-Microsoft partnership will involve co-developing over 100 AI initiatives, covering various aspects of product development, predictive maintenance, testing, and the rapid deployment of digital features and services. Additionally, the collaboration will strengthen Stellantis’ global cyber defense center using AI-driven analytics to safeguard vehicles, customer data, and operations worldwide.
The cyber defense center will encompass IT systems, connected vehicles, manufacturing sites, and digital products, integrating security measures across mobile apps and in-vehicle services. As part of the agreement, Stellantis will expedite the modernization of its IT infrastructure on Microsoft’s Azure cloud platform, with a target of reducing its data center footprint by 60% by 2029.
