Ludwigsburg, June 24, 2025 — eleven major players in the German automotive industry, under the umbrella of the German Association of the Automotive Industry (VDA), have signed a landmark Memorandum of Understanding (MoU) to jointly develop open-source software infrastructure for vehicles. The agreement, announced at the 29th International Automotive Electronics Congress (AEK), aims to transform how automotive software is developed, standardized, and deployed.
At the heart of the collaboration is Eclipse S-CORE, a modular, vendor-neutral software platform hosted by the Eclipse Foundation. Using a “code-first” approach, S-CORE enables faster development and deployment of non-differentiating software modules—like diagnostics, communication stacks, and update mechanisms—while allowing automakers to focus their efforts on delivering unique features and user experiences.
Strategic importance for FEDERATE
This MoU also represents a critical enabler for the FEDERATE project, which seeks to create a federated software-defined vehicle (SDV) ecosystem across Europe. One of the FEDERATE’s ambitions is to build a sustainable, interoperable, and sovereign SDV platform based on open standards and reusable software building blocks.
By aligning on open-source principles and committing to joint development through Eclipse S-CORE, German OEMs and suppliers are laying the foundational groundwork that FEDERATE depends on. The shared software stack and transparent governance structure make it easier to integrate, certify, and scale SDV software components across borders—crucial for achieving such goals as interoperability, cost-efficiency, and European digital sovereignty.
“This isn’t just a German initiative—it’s a major building block for European SDV leadership,” said Markus Rettstatt (Mercedes-Benz) in The Autopreneur podcast. “FEDERATE can’t succeed without real, shared codebases and broad industry commitment. This is the first real step.”
(source: VDA MoU: Automotive OSS collaboration resonates across German mobility podcasts)
Addressing the cost and complexity crisis
With automotive software costs projected to exceed €50 billion annually by 2030, automakers can no longer afford fragmented, proprietary development of basic infrastructure. The shared development model promises reduced duplication, accelerated time-to-market, and simplified certification.
Dr. Marcus Bollig of the VDA called it a move toward “a future-proof, powerful, open, transparent and secure software ecosystem”—one that supports not only the German auto industry but Europe’s broader ambition to lead in SDV technologies.
Why it matters:
- Supports FEDERATE’s architecture, making modular SDV components reusable across borders.
- Accelerates implementation of EU’s digital sovereignty goals in the automotive sector.
- Open-source foundation lowers barriers for innovation while preserving OEM differentiation.
- Code-first model enables faster validation and certification, crucial for series production by 2026.
By linking German industry alignment with EU initiatives like FEDERATE, the VDA’s MoU signifies a major step toward scalable, cooperative automotive software development—essential for the future of smart, safe, and software-defined mobility across Europe.
