Stellantis Shelves Level 3 AutoDrive System, Cites Low Demand

Stellantis, the parent company of Jeep, Fiat and Citroen, has shelved its plan to roll out the Level 3 AutoDrive system, an advanced driver-assistance technology that would have allowed hands-free and eyes-off driving under specific conditions.

Initially positioned as a key feature for future electric vehicles, the decision marks a big shift from earlier commitments. The company attributes the move to escalating costs, technical challenges, and insufficient customer interest. 

In February, Stellantis had showcased AutoDrive as production-ready, with former CEO Carlos Tavares targeting a 2024 launch. However, financial and developmental hurdles have led to an indefinite postponement, with internal sources confirming the program’s current suspension.

Industry-Wide Tech Struggles

This setback reflects broader difficulties faced by traditional automakers transitioning to software-driven models, a domain dominated by Tesla and emerging Chinese EV brands. 

High expenses, reliance on scarce software expertise, and outdated practices are proving challenging, with Stellantis facing similar issues in developing its STLA ABC platform, which included AutoDrive and SmartCockpit systems.

Recently, Stellantis also terminated its SmartCockpit partnership with Amazon, and instead, opted for an Android-based alternative and outsourcing more software development. This pivot suggests a retreat from its earlier self-reliant approach, likely influenced by financial pressures. 

The company’s New York-listed shares have dropped over 40% in the past year, amid declining sales, raising questions about whether this development is linked to its losses.

Financial and Market Context

The high investment required for Level 3 autonomy, with no assured returns, adds strain. Experts note that automakers are increasingly collaborating with suppliers to mitigate risks. 

Stellantis confirmed the technology is ready but withheld due to low demand, hinting it could be deployed later with support from aiMotive, acquired in 2022. For now, no timeline exists for its electric vehicle drivers to benefit.

While the AutoDrive tech remains available for future use, its pause could underscore Stellantis’ current financial woes. The decision may reflect a need to prioritise profitability over ambitious tech projects.

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