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Drivers Forced Stellantis’ Hand on Level 3 Driving Tech

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report stellantis dropping advanced driving tech due to lacking demand

Stellantis has reportedly abandoned AutoDrive, the Level 3 advanced driver-assistance tech that it had announced earlier in the year. The system was supposed to allow for hands-free driving at highway speeds and eye-free driving of speeds up to 37 mph. However, the plan was to bring that figure up to 60 mph via over-the-air updates.

In February, the automaker responsible for the Dodge, Ram, and Jeep brands stated that STLA AutoDrive would be a “key pillar of Stellantis’ technology strategy, alongside STLA Brain and STLA Smart Cockpit, advancing vehicle intelligence, automation and user experience.”

However, Reuters has reported that the company has scrapped development over high costs, technological hurdles and alleged “concerns about consumer appetite.”

That’s probably a massive understatement. Surveys have shown that drivers aren’t fond of the tech found in modern vehicles. We’re actually in the midst of shopping for a new vehicle ourselves and my better half has repeatedly told me that she hates the user interface of modern cars so much that she’d rather just drive “some old piece of garbage.” Her primary gripes revolve around modern pricing, auto start/stop, buttonless interiors, and digital displays.

She’s also said that in-cabin cameras are likewise a deal breaker and that would presumably be a requirement of something like AutoDrive. Much of the self-driving tech found in modern vehicles incorporates some kind of driver-monitoring camera to catch when someone has taken their eyes off the road. But it’s undoubtedly a bridge too far for many motorists, particularly those concerned with how much privacy they’re already losing in today’s vehicles.

Stellantis basically said that AutoDrive was ready to go earlier this year and would serve as the company’s “next step toward more intelligent, comfortable and intuitive driving experiences.” That would seem to indicate development was close to being wrapped up, suggesting that the costs under consideration pertain to manufacturing and not R&D.

Stellantis, like many automakers, has claimed that it’s pivoting to software defined vehicles after attempting to position itself as an automotive focused tech company. But tech companies are becoming increasingly despised by the public and vehicle costs are totally out of whack with today’s consumers.

Meanwhile, attempting to remain on the cutting edge of electrification, advanced driving assistance systems (ADAS), connectivity features, artificial intelligence and omnipresent emissions tech is costing the industry a fortune. Even though the automotive industry is heavily subsidized by governments, companies have dumped billions of their own dollars into chasing down extravagant technologies in a bid to stay ahead of China and create new types of revenue streams via subscriptions and data harvesting.

As luck would have it, most drivers weren’t interested in a lot of that and simply wanted affordable cars. The backlash against modern tech continues to grow, especially now that the average consumer is starting to realize that it’s another factor that’s driving up the price of automobiles.

report stellantis dropping advanced driving tech due to lacking demand

All of that R&D spending is passed onto buyers and the same is true of the extensive network of sensing equipment that goes into every vehicle. Lidar and camera arrays cost money and are effectively being installed into every model built today. With the average price of a new vehicle now teetering around $50,000, many drivers would rather forego today’s bells and whistles so they can have something cheaper, more reliable, and easy to maintain.

But it doesn’t sound like Stellantis is giving up on tech either.

From Reuters:

The strategic shift around AutoDrive is the latest sign that Stellantis has struggled to execute on its tech ambitions. The automaker is now increasingly relying on suppliers to deliver software that it hoped to keep in-house, four people familiar with the matter said.

Stellantis said it will focus its internal work on what differentiates the final product for customers, while working with select suppliers to ensure access to the best technology at competitive costs.

These strategic shifts are becoming prevalent in the industry as automakers pick which technologies to pursue, said Stuart Taylor, chief product officer at software consultancy Envorso.

“I think what you’re seeing now is a change in the relationship,” Taylor said of automakers and their suppliers, adding that major automakers are reckoning with how they cannot do it all alone.

Working independently means automakers have to absorb the initial costs of these software programs, and also face the price of failure if they do not succeed, he said.

“It’s high investment for high risk,” Taylor said of ADAS programs in particular.

There have been a lot of industry partnerships that have fizzled out in recent years, only to be replaced with new participants. The tech game is apparently very similar to musical chairs. Stellantis has said it is now working with aiMotive, which it purchased in 2022, to deliver an improved version of AutoDrive. The company has also recently ended a deal with Amazon to collaborate on multimedia systems and is now working with Android.

While Stellantis has not officially confirmed it is scrapping AutoDrive entirely, sources have suggested that there’s little hope of it moving forward in its current form.

“What was unveiled in February 2025 was L3 technology for which there is currently limited market demand, so this has not been launched, but the technology is available and ready to be deployed,” a Stellantis spokesperson explained.

Insufficient demand hasn’t prevented automakers from rolling out all sorts of features lately. It’s honestly surprising that the company wouldn’t try to implement it in some of its higher-end offerings. While likely to be viewed as a setback internally, Stellantis’ loss may work out okay in the end. If the automaker really does believe that its customers aren’t interested in paying for this kind of tech, then it’s moving in the correct direction.

Stellantis has frankly been missing the mark following the PSA-FCA merger, particularly in North America, and its stock price has taken a massive hit as a result. Global profitability and sales volume are likewise down. Last year was unkind and 2025 isn’t shaping up to be much better. The company clearly needs to refocus on the fundamentals and attempt to field affordable vehicles that its clientele will actually appreciate.

While the allure of tech opening up entirely new revenue streams is undoubtedly difficult to ignore, much of that seems to have been hyped up by the same industries hoping to profit from them. However, attempting to force the market to bend to your will is a risky play and one that has clearly hurt several manufacturers. Stellantis may be better off trying to pivot back to what made customers gravitate to its brands to begin with and snub some of the technologies many drivers no longer care for.

Fortunately there are signs that it’s on a better path. Due to customer feedback, Stellantis plans on reviving production of its 5.7-liter and 6.4-liter HEMI V8 engines in Dundee, Michigan. It’s also tamping down electrification plans to offer more hybrid and combustion options. Antonio Filosa has likewise taken over as CEO with a goal to create a leaner and more efficient company as more production is localized to North America. That may make for some hard years ahead. But, if it makes for more satisfied customers and helps Stellantis turn things around, then it’ll be well worth it.

report stellantis dropping advanced driving tech due to lacking demand

[Images: Stellantis]

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