Jane Lanhee Lee

(Reuters] – Stellantis, an automaker, has agreed to use Qualcomm’s (NASDAQ:) next-generation connected car technology in its vehicles. The companies announced on Thursday.

The 14 Stellantis brands include Jeep (OTC), Fiat, and Peugeot. In 2024, the Maserati brand will be the first to use Qualcomm’s 5G telematics and vehicle cockpit technology.

Carlos Tavares (Chief Executive at Stellantis) stated that this collaboration will help the company better manage its entire electronics supply chain. 

Nakul Dugal is the general manager for automotive at Qualcomm. He told Reuters that automakers have a tendency to work with chip makers directly, and not rely on suppliers as intermediaries.

“If you go back even a couple of years, it was quite uncommon for (automakers) to make a decision like this,” Dugal said. This is becoming more frequent.”

He added Qualcomm’s recent acquisition of self-driving tech software company Arriver gives its so-called “digital chassis” the ability to offer a full set of driver assistance and self-driving capabilities in addition to cockpit and telematic technology. The Stellantis deal does not contain this newer product.

Qualcomm claimed that it has seen its vehicle business pipeline grow from the $3 billion it had in 2017 to $13 billion since Snapdragon Ride was first introduced in 2020.

According to the companies, the Stellantis’ in-car infotainment and communication systems are being created and engineered jointly with Amazon.com (NASDAQ:), and Foxconn, a Taiwanese production company.