BMW, VW, Mercedes and Other German Companies Join Forces On Shared EV Software Platform

Eleven German automotive companies have signed a Memorandum of Understanding (MoU) to jointly develop a new open-source vehicle software ecosystem. Backed by the German Association of the Automotive Industry (VDA), the initiative aims to streamline software development timelines, enhance cybersecurity, and help legacy manufacturers remain competitive amid growing pressure from Chinese EV makers.

Modular system promises faster, safer development

The MoU, signed during the 29th International Automotive Electronics Congress, brings together companies like BMW, Mercedes-Benz, Volkswagen, Continental, and Hella. By collaborating on shared components that don’t directly affect brand identity, the group plans to create a common software base that can reduce duplication, improve safety, and accelerate development, according to GM Authority.

The modular platform is expected to support autonomous driving and will be made available to other industry players by 2026. Dr. Christoph Grote, BMW’s Senior Vice President of Electronics and Software, emphasized the importance of open-source ecosystems. “The BMW Group believes that integrated ecosystems with open-source platforms and tools are a key driver for the development of mobility solutions,” he said.

Software cooperation aims to counter China’s rapid rise

The alliance comes as European automakers grapple with the rapid progress of Chinese rivals, who have disrupted the industry with quick model turnarounds and software-led vehicle development. Unlike traditional Western workflows that emphasize real-world testing, many Chinese brands rely heavily on simulation to bring vehicles to market faster.

While this new German initiative focuses on open collaboration, companies like General Motors are taking a different approach, opting to develop proprietary software platforms in-house. GM has also expanded its engineering footprint with a new tech center in Silicon Valley.

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