Volkswagen, BMW and Mercedes-Benz team up to develop connected vehicle software

Germany’s automakers – the Volkswagen Group, BMW, and Mercedes-Benz – are teaming with up the nation’s auto suppliers to jointly develop underlying software for vehicles.

They are part of a consortium of 11 companies brought together by Germany’s Automotive Industry Association (VDA) that will develop an open-source software stack, which will authenticate car components and handle communication between them as well as with cloud services, customer interfaces, and the overarching operating systems of vehicles.

Most of the software being developed by the consortium will be “non-differentiating”, and not items that drivers or passengers will directly interact with.

This means that user interfaces, such as BMW’s iDrive and Mercedes-Benz’s MBUX, will continue to be developed in-house, and remain completely distinct from each other. Members of the consortium are also free to continue developing, distributing and using their own software as required.

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But by coming together, the companies hope to bring down the cost of software development, while also speeding up new model delivery times “in order to stay competitive in the global market”.

Established automakers from Europe, Asia and the US have largely been caught flat-footed by the Chinese automotive industry’s speedy rise up the leaderboard over the last few years.

Many factors have contributed to their success, including sharp pricing, more appealing designs, and eye-catching user-facing technology. Thanks in part to their large home market, Chinese automakers have also been able to iterate their designs and technologies at a fierce pace.

The consortium plans to have the first version of its software stack available for use in development vehicles by 2026, and hopes to have its tech in showrooms by 2030.

Other companies involved in the consortium include Bosch, Continental, ETAS, Hella, Qorix, Valeo Brain, Vector, and ZF.

According to Automobil Woche, talks are already under way to bring French automakers and suppliers into the consortium via that country’s automotive association.