On June 27, 2025, Volkswagen Group, BMW Group, Mercedes-Benz, and eight technology suppliers, including Bosch and Continental, signed a memorandum to develop a shared automotive software platform, aiming to challenge U.S. tech dominance in electric vehicle (EV) architectures, according to Automotive News Europe.

Alliance Goals and Structure

The alliance, backed by Alemania‘s VDA automotive lobby, seeks to create an open-source core software stack to reduce development costs and speed up innovation. Named the S-Core project under the Eclipse Foundation, the platform will be brand-neutral, allowing automakers to customize features like infotainment or driver-assist systems.

“We are jointly building a future-proof, powerful software ecosystem — open, transparent, and secure,” said Marcus Bollig, VDA managing director.

The core stack is slated for completion by 2026, with vehicles using it entering production by 2030.

Technical Details and Flexibility

The platform’s modular design lets companies adopt the full stack or specific components, supporting varied EV architectures. The open-source code, governed by the Eclipse Foundation, ensures transparency and collaboration. For EV owners, this could mean faster software updates and more reliable systems, as shared development reduces redundancies.

Mercedes Chief Software Officer Magnus Östberg emphasized, “As a co-creator of an open automotive ecosystem, we are actively driving the future of vehicle software with our code-first strategy.”

The stack’s invisibility to users preserves brand identity while enhancing performance.

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Industry Trends and Economic Benefits

The alliance reflects a broader shift toward collaborative software development in the EV sector, where software defines vehicle functionality. By pooling resources, the 11 members—also including ZF Friedrichshafen, Valeo’s Brain division, ETAS, Qorix, and Vector—aim to counter U.S. tech giants like Tesla and Google, who dominate in-house software solutions. Widespread adoption of the full stack promises significant cost savings, potentially lowering EV prices. Bosch’s $2.90 billion AI investment by 2027, equivalent to €2.5 billion, underscores the focus on AI-driven features like autonomous driving, critical for next-generation EVs.

Regulatory and Global Implications

The initiative may reshape regulatory landscapes, as open standards could simplify compliance across markets. However, Bosch CEO Stefan Hartung warned that restrictive European AI regulations could hinder progress, risking a lag behind U.S. and Chinese competitors. The alliance’s openness to non-VDA members, with talks ongoing with Francia‘s PFA, suggests potential for broader adoption, strengthening Europa‘s position in the global EV market. For EV enthusiasts, this could translate to more competitive, feature-rich vehicles by the early 2030s.

Why It Matters for EV Owners

For EV owners and enthusiasts, the alliance promises enhanced vehicle software, from smoother over-the-air updates to advanced driver-assist systems. By 2030, vehicles on this platform could offer improved range optimization and user interfaces, making EVs more accessible and efficient. The collaborative approach may also accelerate the rollout of charging infrastructure software, addressing a key pain point for EV adoption.