European automotive giants reduce technology investments, Stellantis quietly suspends L3 autonomous driving project

Faced with high costs and an uncertain market outlook, European automotive giant Stellantis is reassessing its ambitious software strategy.

On the 26th, media reports indicated that due to high costs, technological challenges, and concerns about consumer acceptance, Stellantis has quietly shelved its first Level 3 advanced driver assistance system (ADAS) project. The system, named "AutoDrive," was claimed to be ready by Stellantis earlier this year in February and was positioned as a key pillar of the company's strategy.

Stellantis confirmed to the media that the L3 software was never officially released, but did not explicitly state that the project has been canceled. A company spokesperson stated:

“What we showcased in February 2025 was L3 technology, but currently, market demand is limited, so it has not been launched; however, the technology is available and ready for deployment.”

This move comes as Stellantis experiences a turbulent period of declining sales, with the company's stock price dropping over 43% in the past 12 months.

Shelved Ambitions

Level 3 autonomous driving is one of the focal technologies in the automotive industry's competition, allowing drivers to take their hands off the wheel and their eyes off the road under certain conditions to engage in activities such as watching movies or checking emails. Stellantis's "AutoDrive" project was born for this purpose.

According to former Stellantis CEO Carlos Tavares's description in 2021, "AutoDrive" is one of the company's three core technology platforms, originally planned for deployment in 2024. He emphasized at the time:

“The software strategy is one of the key cornerstones of Stellantis's overall strategy.”

However, according to informed sources, the project has now been shelved and is not expected to be deployed. When asked by the media about the specific time and financial losses caused by the plan, Stellantis declined to disclose, only stating that the work completed on "AutoDrive" will help support the development of future versions.

The adjustment of the "AutoDrive" project is part of Stellantis's broader strategic shift. The company recently terminated its collaboration with Amazon on the in-car infotainment system "SmartCockpit," stating that it will instead use the Android system. Four informed sources indicated that the automaker is increasingly relying on suppliers to provide software that it originally hoped to develop in-house.

In response, Stellantis stated that the company will focus its internal efforts on final products that can create differentiated experiences for customers while collaborating with certain suppliers to ensure access to the best technology at competitive costs. The company noted that it is relying on its technology startup aiMotive, acquired in 2022, to deliver the next generation of the "AutoDrive" project, but did not disclose the launch timeline for the new project or whether it will include L3 features

Industry Commonality and Cost Pressure

Stellantis's strategic contraction reflects a common trend in the automotive industry. Stuart Taylor, Chief Product Officer of software consulting firm Envorso, stated that large automakers are reassessing their relationships with suppliers and gradually realizing that they cannot do everything independently.

Taylor pointed out that independent development means automakers must bear the full initial costs of software projects and face losses alone if the projects fail. He specifically mentioned advanced driver-assistance systems (ADAS) projects, calling them a "high investment, high risk" area.

For Stellantis, the pressure to cut costs is particularly pronounced. The company is emerging from a difficult year of declining sales, with former CEO Carlos Tavares unexpectedly leaving last year. The newly appointed CEO Antonio Filosa is formulating a new direction for the company, with plans expected to be announced in early 2026. Under performance pressure, reassessing high-risk, high-investment technology projects has become an inevitable choice