Stellantis CEO Halts Development of Autonomous Driving Program Amid High Costs and Limited Demand.

Stellantis has suspended the development of its Level 3 assisted driving system, citing high costs, technical complexity, and limited market demand. The technology is ready but has been put on hold, with future platform developments integrating the work. The move marks a further scaling back of the company's software strategy under new CEO Antonio Filosa, who aims to focus on distinctive features and leave complex solutions to external partners.

Stellantis, the parent company of Jeep and Chrysler, has announced the suspension of its Level 3 assisted driving system, citing high costs, technical complexity, and limited market demand. The technology, part of the AutoDrive initiative, was previously touted as a key element of the company's strategy but has been put on hold. Stellantis is now relying on tech startup aiMotive to develop the next generation of the AutoDrive program.

The decision reflects the challenges faced by traditional automakers as they transition to software-focused vehicles, a domain dominated by companies like Tesla and Chinese electric-car brands. The high investment required for advanced driver-assistance systems (ADAS) and the risk of failure have led many legacy automakers to reevaluate their strategies [1].

Stellantis' New York-listed shares have lost more than 40% in the last 12 months, closing down 2% at $9.93 on Monday. The company is expected to outline a new course under the leadership of recently appointed CEO Antonio Filosa in early 2026 [1].

The AutoDrive program was designed to enable drivers to have their hands off the wheel and eyes off the road under certain conditions, allowing them to temporarily watch movies, catch up on emails, or read books. However, the company confirmed that the Level 3 software was never launched, and the program is not expected to be deployed in the near future [1].

The strategic shift around AutoDrive is the latest sign that Stellantis has struggled to execute on its tech ambitions. The automaker is now increasingly relying on suppliers to deliver software that it hoped to keep in-house [1].

The pressure to cut costs is pronounced at Stellantis as it emerges from a turbulent year of drooping sales. The company is focusing its internal work on what differentiates the final product for customers, while working with select suppliers to ensure access to the best technology at competitive costs [1].

The future of ADAS and fully autonomous cars is a significant market opportunity for companies like Stellantis, which targeted $20 billion in annual revenue from software-related products and subscriptions by the end of the decade [1].

References:
[1] https://www.reuters.com/business/autos-transportation/stellantis-shelves-level-3-driver-assistance-program-it-downscales-software-2025-08-26/
[2] https://www.timeslive.co.za/motoring/news/2025-08-26-stellantis-drops-level-3-driver-assist-plans-in-software-rethink/
[3] https://www.detroitnews.com/story/business/autos/chrysler/2025/08/26/stellantis-stops-plan-for-level-3-automated-driving-technology-in-cars/85831953007/