Stellantis Halts Level 3 Driver-Assistance Program Amid Cost, Demand Challenges

Stellantis has halted its Level 3 autonomous driving assistance program, initially unveiled in February 2025 as part of its AutoDrive initiative, citing high development costs, technical challenges, and limited consumer demand. The technology, which would have allowed drivers to take their hands off the wheel and eyes off the road under certain conditions, never reached deployment and is now effectively frozen without a clear timeline. Despite the setback, Stellantis maintains that the technology is ready and may be deployed if market conditions improve, with ongoing AutoDrive research supporting future software versions. The company is shifting focus towards collaborating with suppliers like aiMotive and emphasizing features that enhance customer experience while managing costs. This move reflects broader difficulties traditional automakers face competing with Tesla and Chinese EV brands in software development, exacerbated by talent shortages and organizational challenges. Stellantis' stock has declined significantly amid these struggles and leadership changes, as the company aims to redefine its strategy by early 2026.