Stellantis teams with Microsoft

Stellantis and Microsoft signed a five-year deal on April 16 to build artificial intelligence tools for the carmaker’s vehicles, factories and back-office systems. (stellantis.com) The companies said they plan to co-develop more than 100 artificial intelligence programs covering engineering, cybersecurity, customer support and predictive maintenance. Reuters reported the agreement as Stellantis tries to keep pace with rivals that treat software as a core part of the car business. (reuters.com) Stellantis said the work will use Microsoft Azure, artificial intelligence services and security tools across its global operations. The automaker said the goal is faster software deployment and more connected digital processes across its brands and supply chain. (stellantis.com) In cars, the pitch is that new features can increasingly arrive as software updates instead of waiting for a full hardware redesign. Stellantis has been pushing that model since its 2021 software strategy, when it said over-the-air updates would keep vehicles current years after they left the factory. (stellantis.com) That shift has turned automakers into cloud buyers as much as metal-and-engines manufacturers. S&P Global wrote in September 2024 that Stellantis was building around “software-defined vehicles,” meaning cars whose functions can be added, tuned or fixed with code after sale. (spglobal.com) Stellantis and Microsoft are not starting from zero. The two companies have worked together since at least 2022 on the “Virtual Engineering Workbench,” a cloud-based system for vehicle software development and testing. (microsoft.com) The new agreement widens that relationship beyond engineering into day-to-day operations. Stellantis said employees are already being trained to use artificial intelligence in routine work, while Microsoft said the partnership also covers stronger cyber defenses. (freep.com) One example Bloomberg cited was a Peugeot driver getting energy-saving route or driving suggestions in city traffic. Another was using artificial intelligence to spot maintenance issues before a breakdown or to help customer-service teams answer questions faster. (bloomberg.com) The timing is notable for Stellantis because the company reported estimated first-quarter 2026 shipments of 1.4 million vehicles on April 15, up 12% from a year earlier, as it works through a broader reset announced in February. Software and services offer a way to add features without waiting for an all-new model cycle. (stellantis.com)