Stellantis Scales Back Software Ambitions, Halts Level 3 Self-Driving Rollout

Image: Stellantis

Stellantis has pressed pause on its AutoDrive Level 3 self-driving program, opting instead to lean on suppliers for advanced driver-assistance technology as it looks to cut costs amid falling sales — reports Reuters.

The automaker had originally hoped to launch its AutoDrive system with Level 3 capability in 2024, in partnership with BMW, before pushing the debut to 2025. Back in February, Stellantis even announced that the system was “ready for deployment,” but it was never released.

“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 told Reuters.

Three other sources, however, said the program has effectively been shelved and is not expected to launch at all. Level 3 technology allows drivers to take their hands off the wheel and eyes off the road under certain conditions, enabling them to read, watch movies, or even catch up on emails. Mercedes-Benz currently claims to be the first automaker with a legally approved Level 3 system.

The pause reflects broader struggles by legacy automakers to catch up to Tesla and Chinese EV makers, who pioneered the smartphone-like approach of frequent over-the-air updates. Stellantis’ software push has been hampered by high costs, technological challenges, and organizational hurdles.

“It’s high investment for high risk,” said Stuart Taylor, chief product officer at consultancy Envorso, noting that automakers increasingly face the reality that they cannot develop everything in-house.

Stellantis said that work already completed on AutoDrive will help inform future versions of the technology. The company is now relying on aiMotive, a tech startup it acquired in 2022, to build the next generation of its advanced driver-assistance system. AutoDrive was originally positioned as one of three core technology platforms within Stellantis’ “STLA ABC” strategy, alongside its SmartCockpit infotainment system and STLA Brain electrical architecture.

Newly appointed CEO Antonio Filosa is expected to unveil an updated strategy in early 2026 as Stellantis navigates declining sales and a stock price that has fallen more than 40% over the past year.