Stellantis has paired up with tech giant Microsoft in an effort to keep pace with tech-focused and tech-savvy competitors. Announced over the weekend in Milan, Stellantis and Microsoft said on Thursday they had “agreed to a five-year strategic partnership to co-develop artificial intelligence, cybersecurity and engineering capabilities”.

Almost a decade ago at the Volkswagen Group’s media night at the Frankfurt Motor Show, the then boss of the company said more staff would be poached out of Silicon Valley in the following five years than from other auto manufacturers. It was a poignant assessment of where automotive manufacturing was heading, and it’s a trend that has shown no signs of slowing down.

Legacy automakers like Stellantis have continued to struggle in the face of increasing software and technology demands within their vehicles, and are increasingly looking to the tech sector as the smartest way to incorporate this expertise.

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“Through our collaboration with Microsoft, we are accelerating our AI momentum across the enterprise,” Stellantis Chief Engineering and Technology Officer, Ned Curic, said in a joint statement.

The two groups have previously worked on connected vehicle technology and in-car digital connected services, but this new announcement deepens the development ties as Stellantis looks to not only improve sales globally, but also quality. Brands like Fiat, Alfa Romeo, Jeep, Peugeot and Leapmotor all fall under the broad Stellantis banner.

Under the terms of the agreement, joint teams will work on more than 100 AI initiatives, including product development, validation, predictive maintenance and testing, and the more rapid rolling out of digital features and services.

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As vehicles have quickly evolved to include the kind of connectivity not even dreamed of a decade ago, legacy manufacturers have lagged behind those challenger brands either tied to a tech and development legacy, or those who have managed to build the their tech resources quickly. The security of in-car connected systems is one of the most significant concerns for buyers skeptical over who manages the data, who can access the data, and how easy it is to hack into.

This partnership provides Stellantis with an accelerated entry into the type of security that buyers are looking for. Stellantis will strengthen its cyber defence centre, which manages the brand globally, with AI-driven tools and smarts to identify and prevent cyber threats, protect vehicles, manage and protect customer data and manage operations worldwide.

As part of the collaboration, Stellantis will also accelerate the modernisation of its IT infrastructure on the Microsoft Azure cloud platform, looking to reduce its data centre footprint by as much as 60 percent by 2029.

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