Tech giant Amazon’s (AMZN) software partnership with car manufacturer Stellantis (STLA) has hit the buffers. It left Amazon down 0.25% and Stellantis reversing 3% in early trading.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
According to a Reuters report, the partnership to create in-car software to enhance the driver experience is ‘winding down.’
Home From Home
The deal, which was announced back in 2022, saw the two companies joining forces to develop software to power the infotainment systems in Stellantis cars. The Stellantis range of brands includes Chrysler, Fiat and Vauxhall.
The system would have leveraged Amazon’s Alexa technology to enable voice-controlled navigation maintenance. The voice-controlled features would also support e-commerce marketplaces and payment services. The aim was to make the cockpit of a car feel more like sitting in the driver’s living room at home with personalized heating settings, navigation and automated lighting.
The first deployment of the system had been scheduled for late 2024 or early 2025.
Stellantis had hoped the tech deal would help it better compete with the likes of EV maker Tesla (TSLA), while Amazon was hoping to roll-out the software to other car manufacturers.
Bumpy Tech Journeys
However, the Stellantis SmartCockpit project is instead being held up by analysts as an example of how difficult it can be for traditional automakers to work with Silicon Valley boffins.
“Stellantis remains a valuable partner for Amazon, and the companies continue to work together on a range of initiatives,” the companies said in a statement, adding that the decision to end their joint work on SmartCockpit was mutual.
The news came as Stellantis, whose share price has reversed 15% in the year to date, announced Antonio Filosa as its new chief executive.
Under his leadership the tech journey will continue. Stellantis will keep using Amazon Web Services and Alexa will also still be available in some of its cars.
The manufacturer may also, it is understood, look for a new partner such as Google’s (GOOGL) Android platform.
Is AMZN a Good Stock to Buy Now?
On TipRanks, AMZN has a Strong Buy consensus based on 47 Buy and 1 Hold rating. Its highest price target is $305. AMZN stock’s consensus price target is $240.62 implying an 17.14% upside.
