Amazon Inc. has entered into a partnership with Stellantis NV for developing software and agreeing to buy its electric delivery van. The move will provide direct competition with electric car maker Rivian Automotive Inc., also making EVs for Amazon, the largest e-commerce company in the world.
As per Bloomberg News, the Amsterdam-based maker of Fiat, Jeep, and Chrysler brands will collaborate with Amazon on digital technology using its cloud service as per Wednesday’s joint statement. Amazon will be the first customer for the new electric model, the ProMaster, which is due in 2023.
According to Andy Jassy, CEO of Amazon, the online retailer will set up a foundation for Stellantis to transform their traditional automaking to software-driven engineering and development.
The announcement at the Las Vegas CES consumer tech show follows after Stellantis revealed plans last month about generating an extra $23 billion (20 billion euros) from software-driven features, which it is going to provide in its vehicles by the end of the 2020s.
The deal of Stellantis with Amazon adds to the roster, which already had Foxconn Technology, BMW AG, and Waymo for building new technology platforms by 2024.
Amazon Web services (AWS) has a monopoly in providing rented infrastructure for computing to companies virtually in any industry. Adam Selipsky, CEO of AWS, recently disclosed new plans for tailoring more products suitable for specific industries like automotive, healthcare, and telecommunications.
Stellaris declined to reveal the number of co-developed electric RAMs it will supply. In a call with the reporter, the Software head of Stellantis, Yves Bonnefont, said that the automaker had delivered thousands of vehicles to Amazon.
Rivian Automotive, in which Amazon is an investor, slipped with its partner’s move to tie-up with rival Stellantis for Ram Delivery vans. Rivian already has an order book of 100,000 EVs, of which 10,000 vehicles are to be delivered in 2022 and the rest by the end of the decade.
As part of the arrangement between Amazon and Rivian, the former is not bound to buy EVs from any particular producer. It can work with other automotive car makers it chooses to partner with. Rivian shares fell by 5.7% Wednesday.
Focus on Infotainment
Amazon and Stellantis said on Wednesday that they would work on a software solution for the digital cabin platform. This is known as STLA SmartCockpit, and the technology will feature infotainment that will be added to the autonomous EVs in 2024.
The revenue projection from the software downloads, navigation system, and maintenance services highlights how fast the next battleground will be the computer codes. Stellaris aims to get tech industry profit margins for its software business, and the company will invest 30 billion euros in the software and electrification segment by mid-decade.
