Jeep, Chrysler Parent Stellantis Reportedly Halts Ambitious Level 3 Self-Driving Push—Tesla And Chinese EV Makers Race Ahead In Tech Battle
News Summary
Stellantis, parent company of Jeep and Chrysler, has reportedly shelved its Level 3 advanced driver-assistance program due to high costs, technological difficulties, and consumer apprehension. The program, a key element of its AutoDrive initiative, was never officially launched. While the company has not confirmed cancellation, sources indicate the program is on hold and unlikely to be implemented. Stellantis stated that work on AutoDrive will benefit future versions and is now relying on aiMotive, acquired in 2022, to develop the next generation of the program. This decision is seen as a significant setback for Stellantis in keeping pace with evolving automotive technology, particularly in the software-focused vehicle domain dominated by Tesla and Chinese EV brands. Stellantis also ended its collaboration with Amazon on the SmartCockpit infotainment system, transitioning to an Android-based platform. In H1 2025, Stellantis’s revenue fell 13% due to President Trump’s tariffs, with CEO Antonio Filosa describing 2025 as tough but supporting Trump's tariff strategy. Despite these challenges, Stellantis-owned Leapmotor experienced a surge in sales in July, indicating potential in the competitive EV market.
Background
Stellantis, the world's fourth-largest automaker and parent to brands like Jeep, Chrysler, Peugeot, and Citroën, has been striving to transform in electric and software-defined vehicle domains. Level 3 autonomous driving technology allows drivers to momentarily divert attention from the road under specific conditions, representing a significant milestone in autonomy, yet it faces challenges in complexity, regulation, and consumer acceptance. Traditional automakers like Stellantis encounter inherent difficulties in transitioning to software-driven companies, while Tesla and Chinese EV manufacturers (such as Nio, Li Auto) have made notable strides in autonomous driving and intelligent cockpit technologies. The suspension of the Level 3 program and the termination of the Amazon collaboration underscore Stellantis's pressures in technological competition and cost control. In 2025, President Trump's tariff policies continue to impact global automotive supply chains and sales, particularly posing challenges for European automakers entering the U.S. market, which has indirectly affected Stellantis's financial performance.
In-Depth AI Insights
What is the true strategic significance of Stellantis halting its Level 3 autonomous driving program for traditional automakers in the era of software-defined vehicles? - This signals that for most traditional automotive giants, independent in-house development of cutting-edge L3+ autonomous driving technology may no longer be a viable or optimal strategic choice when faced with the rapid innovation of Tesla and Chinese EV makers. High R&D costs, lengthy validation cycles, and uncertain commercialization prospects push them towards more pragmatic strategies. - Stellantis's decision may foreshadow a broader trend of collaboration or technology acquisition in the industry. By acquiring startups like aiMotive or partnering with more mature tech companies, traditional automakers can de-risk, reduce costs, and focus on their core vehicle engineering and manufacturing strengths, rather than attempting to lead in all technological domains. - This decision reflects a re-evaluation of return on investment. In the current market landscape, allocating limited resources to iterative L2+ advanced driver-assistance systems and user experience optimization might yield quicker results and market acceptance than pursuing breakthroughs in L3 autonomy, which still faces multiple hurdles like legal liability, consumer trust, and technological maturity. Given President Trump's tariff policies, how does Stellantis's CEO supporting tariffs, alongside its Chinese brand Leapmotor's sales surge, reveal a complex geopolitical and market strategy? - Stellantis's support for Trump's tariff policies, despite suffering revenue losses in H1, could be a strategic posture aimed at maintaining political relationships in the US market and paving the way for potentially reshoring more production to the US or Europe. It's also an adaptation to potential protectionist trends, hoping to secure policy support in the future. - Leapmotor's success, particularly in the Chinese market, provides a crucial hedge for Stellantis. This indicates Stellantis is actively pursuing a