Amazon.com Inc is partnering with Stellantis NV to develop software and buy electric delivery vans, the companies said on Wednesday.
The maker of Jeep, Chrysler and Fiat brands is to work on digital technology with Amazon and use its cloud services, a joint statement said.
The online retailer is also the first commercial customer for the new Ram ProMaster electric delivery vehicle due next year, it said.
Photo: AFP
While the companies did not provide details of the size of the order, Stellantis CEO Carlos Tavares said it is to sell “a big number” of the vans to Amazon.
“This is the acceleration and growth of an existing business,” he said at CES in Las Vegas. “We are going to work intimately with Amazon about having an even more precise understanding of the customer needs of the last-mile delivery suppliers.”
The announcement comes after Stellantis last month outlined plans to generate about 20 billion euros (US$22.63 billion) in extra revenue from software-driven features in its vehicles by the end of the decade. The agreement with Amazon adds another partner to a roster that includes Foxconn Technology Group (富士康科技集團), Waymo and BMW AG to build three new tech platforms by 2024.
Amazon Web Services is by far the leader in the business of providing rented computing infrastructure and serves companies in virtually every industry.
Amazon has been “very helpful” in driving down the cost of developing software, Stellantis chief technology officer Ned Curic said during the presentation in Las Vegas.
Stellantis’ Jeep models already feature cloud-based Alexa voice services, and the upscale Jeep Wagoneer, which went on sale this year, offers Amazon Fire TV.
“The pricing structure for the services that we use is not going up, it’s actually coming down,” he said.
Along with the van deal, Stellantis and Amazon said they plan to work on software solutions for the digital cabin platform called STLA SmartCockpit starting in 2024. The technology is to focus on infotainment and to be added to electric vehicles equipped with autonomous features as the industry shifts away from conventional motors.
Stellantis’ focus on revenue from software downloads and updates for services like navigation systems and maintenance shows how computer code is fast becoming the next battleground.
The Amsterdam-based manufacturer has said it is aiming for “tech industry margins” from selling software.
Overall, Stellantis plans to spend 30 billion euros by mid-decade on electrification and software. It is to unveil its strategic plan through 2030 on March 1.
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