Stellantis Pauses Level 3 Driver-Assistance Rollout Amid Software Shift

Stellantis is hitting the brakes on its Level 3 driver-assistance program, a once highly promoted piece of its AutoDrive strategy, according to a recent report from Reuters.

A Promising Start That Never Launched – 

Back in February, Stellantis told investors and the public that its in-house STLA AutoDrive system was “ready for deployment.” The company said the Level 3 technology would allow drivers to take their hands off the wheel and eyes off the road under certain conditions, opening the door to activities such as watching a movie, reading, or checking emails while the car handles itself.

But despite the fanfare, the software never launched. Stellantis has now confirmed the program is on hold, though it stopped short of officially calling it a cancellation. A company spokesperson told the media the tech is “available and ready to be deployed,” but added that current market demand for Level 3 systems is limited.

Sources Say Program Is “On Ice” – 

Three people familiar with the matter told Reuters the program is essentially shelved and unlikely to reach production. Stellantis would not disclose how much money or time has been invested but insisted that work on AutoDrive will influence future software.

Former CEO Carlos Tavares originally pitched AutoDrive in 2021 as one of three core software platforms, with a planned release in 2024. The plan was part of a larger push to transform Stellantis into a more software-driven company, similar to Tesla and rising Chinese automakers.

Shifting Strategy and Rising Costs – 

Developing Level 3 systems isn’t cheap. Automakers must sink billions into advanced hardware, software, and safety validation—while facing uncertain customer demand. Stuart Taylor, Chief Product Officer at software consultancy Envorso, told Reuters that these types of projects represent “high investment for high risk.”

Stellantis now says it will rely more on suppliers for advanced software, including aiMotive, a startup it acquired in 2022. Meanwhile, the company’s infotainment plans have also shifted. A much-touted partnership with Amazon has been dropped, with Stellantis instead adopting an Android-based system.

The Bigger Picture for Stellantis – 

The decision comes at a tough time for the automaker. Sales have been slumping, its New York-listed shares have fallen more than 40% in the past year, and new CEO Antonio Filosa is preparing to present a revised long-term strategy in 2026.

Driver-assistance remains important to Stellantis’ revenue goals. In 2021, the company aimed to achieve €20 billion ($23.3 billion) in annual software-related sales by 2030, relying on subscriptions and upgrades to generate steady income. Scaling back ambitions for Level 3 raises questions about how much of that forecast will materialize.

Still, Stellantis says it is not abandoning the technology altogether. Instead, the company is shifting to a more selective approach—focusing on features that customers value most while allowing suppliers to absorb a greater share of the development costs.

Source: Reuters