Last Wednesday, Amazon
As part of the deal, Amazon will also be the first customer of Ram ProMaster electric delivery vehicles set to roll out in 2023. Despite the lack of exact figures, Stellantis' CEO Carlos Tavares said his firm will sell a "big number of vans" to Amazon.
The deepening relationship between the two companies has investors drawing inferences about Amazon's relationship with Rivian
Investor's fear that Amazon might scale back its agreement with Rivian, finding a more preferred partner in Stellantis. At the time of writing, shares of Rivian are down by roughly 22% over the last five days. Both Amazon and Rivian have reiterated that Amazon's electrification ambitions are big enough for all three companies.
However, Stellantis' collaboration likely came as little surprise to those who've been keeping a careful watch on the company.
Last month the automaker unveiled a roadmap to earn an additional 20 billion Euros in revenue by selling software at "tech industry margins" over the next decade.
As with Apple's
"Working together with Amazon is an integral part of our capability building roadmap," said Stellantis' CEO Carlos Tavares in a statement. "it will bring significant expertise to one of our key technology platforms, STLA SmartCockpit...by leveraging [Amazon's]artificial intelligence and cloud solutions, we will transform our vehicles into personalized living spaces."
Amazon joins a growing roster that includes Foxconn Technology Group, Waymo
" We are inventing solutions that will help enable Stellantis to accelerate connected and personalized in-vehicle experiences, so that every moment in motion can be smart, safe and tailored to each occupant," said Amazon CEO Andy Jassy.
"Together, we [Stellantis and Amazon] will create the foundation for Stellantis to transform from a traditional automaker into a global leader in software-driven development and engineering."
STLA will enable the use of "Amazon products and solutions that are purpose-built for vehicles," with Stellantis working to develop custom apps for different models, according to a joint statement from both companies.
As expected, the platform will come pre-equipped with a bevy of Amazon-oriented features, including "Alexa enabled voice assistance, vehicle maintenance, eCommerce marketplaces, and payment services."
A day planning app for the family-focused Chrysler Pacifica and an off-roading guide for the rugged Jeep are offered as two examples of custom software solutions that the company could offer.
Over time the number of apps will swell along with their capabilities as Stellantis and other automakers pivot toward more autonomous driving solutions.
In a sign of things to come Stellantis' 2022 Jeep Grand Wagoneer is equipped with Level 2 autonomous driving and is also the first model to offer Amazon FireTV, a video streaming service, as an option.
No doubt, as more eyes and hands become free as our cars learn to drive themselves, the demand for digital content will grow, and the partnership leaves Stellantis and Amazon well-placed to capitalize on this emergent market.
Stellantis is set to release its strategic plan through 2030 on March 1.
- 1.https://www.bloomberg.com/news/articles/2022-01-05/amazon-stellantis-team-up-on-auto-software-delivery-vehicles
- 2.https://media.stellantisnorthamerica.com/newsrelease.do?id=23436&mid=1
- 3. https://www.cnbc.com/2022/01/06/rivian-stock-falls-for-second-day-following-amazon-stellantis-deal.html
- 4.https://www.flaglerchryslerdodgejeep.net/the-grand-wagoneer-has-level-2-autonomous-driving.htm