Stellantis is Exiting the Autonomous Driving Development Business

Metaverse Planet August 27, 2025Last Updated: August 27, 2025

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Automotive giant Stellantis is pulling out of the business of developing advanced driving systems. The company is said to have made this decision due to high costs, technical difficulties, and uncertain consumer demand.

Automotive giant Stellantis, the owner of many popular car brands including Peugeot, Citroen, Fiat, Opel, Jeep, and Dodge, is abandoning its plans to develop advanced driver-assistance systems (ADAS).

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Reason: High Costs and Technical Difficulties

The automaker, which has already fallen behind its competitors in electric vehicle development and sales, is now halting its autonomous driving efforts. According to a Reuters report citing three sources close to the matter, the decision is driven by high costs, technical difficulties, and uncertain consumer demand.

At the beginning of the year, the company had introduced its first Level 3 system, named STLA AutoDrive 1.0. In theory, this technology allowed drivers to take their hands off the steering wheel and their eyes off the road under specific conditions at speeds up to 60 km/h. However, the system still required the driver to take back control when it deemed necessary. In a press release at the time, Stellantis stated that thanks to STLA AutoDrive, drivers could engage in non-driving activities such as watching a movie, checking emails, reading a book, or simply enjoying the scenery. The system provided partial autonomous driving by combining adaptive cruise control with lane-keeping assist. Promotional videos were even released showing an electric Jeep Wagoneer S equipped with AutoDrive 1.0 technology driving itself on a highway.

Will Source from External Suppliers

However, according to recent reports, Stellantis now plans to source this technology from suppliers instead of developing it in-house. While this approach may be more cost-effective in the short term, it could create disadvantages in the long run. This is because when automakers develop ADAS systems in-house, they maintain full control over the technology, can roll out updates quickly, and can integrate hardware and software more efficiently.

However, the financial cost of developing these systems is extremely high. Automakers are already losing billions of dollars on electrification projects. Developing autonomous driving systems without a profitable revenue model and subscription plan drains billions more from their finances.

Although fully autonomous vehicle technology has long been a goal for both tech and automotive companies, its implementation is proving to be quite difficult. In 2020, Uber canceled its plans to develop robotaxis due to high costs and technical hurdles, selling its division to Aurora. Last year, General Motors (GM) also shut down its Cruise robotaxi operations after a driverless Chevy Bolt EV crashed into a vehicle and dragged a pedestrian for several meters. However, GM later shifted its focus to driver-oriented autonomy solutions like Super Cruise.

This decision could cause Stellantis to fall behind in the race, while competitors like GM, Ford, Tesla, and others are rapidly advancing.