Image<\/p>\n\n\n\n On July 4, Magnus \u00d6stberg<\/strong> (Chief Software Officer, Mercedes-Benz) and Markus Rettstatt<\/strong> (VP, Mercedes Tech Innovation) were featured in a podcast episode<\/strong><\/a> of Moove: New Mobility Podcast<\/em> by the magazine auto motor und sport<\/em>. The episode, entitled \u201cIs This How Mercedes Can Beat Google and China?\u201d<\/em>, explores the industry’s shift to open source in detail.<\/p>\n\n\n\n The first question addresses the definition of the Software-Defined Vehicle<\/strong> (SDV). Despite being a \u201cbuzzword\u201d on the verge of becoming an \u201cempty phrase,” as the host and moderator Luca Leicht notes, the SDV has a clear goal which Magnus \u00d6stberg<\/strong> explains as follows: it marks the difference between the car as a \u201cstatic\u201d and a \u201cdynamic\u201d product. Thanks to software \u2013 which is abstracted and decoupled from the hardware \u2013 the vehicle \u201ccomes to life\u201d (\u00d6stberg).<\/p>\n\n\n\n What about hardware limits, lifecycles, and long-term support?<\/strong> Leicht asks. After all, a vehicle\u2019s lifecycle is much longer than that of a smartphone or tablet computer \u2013 and even in consumer electronics, customers are often frustrated when vendors discontinue software support for older hardware or operating systems. \u201cThis is exactly why we decided we need the know-how about architecture and the integration capabilities, CI\/CD\/CT in DevOps to maintain support over the [entire] lifecycle of our cars, because the lifecycle is much longer,\u201d says \u00d6stberg, adding: \u201cWe have more than 10 million connected cars in the field,\u201d and saying it is Mercedes-Benz\u2019s responsibility to live up to the values the company stands for: long-term reliability, support, and quality.<\/p>\n\n\n\n If software adds complexity and requires long-term support, will cars become even more expensive?<\/strong> <\/strong>\u00d6stberg explains that this is precisely why Mercedes-Benz invested in the Mercedes-Benz Operating System (MB.OS), which is now used across all current model series and will be reused in future models as well. In contrast, previous models each required a separate contract with each different supplier.<\/p>\n\n\n\n This is also where open source comes into play:<\/strong> <\/strong>\u201cWhich parts of the platform do we want to maintain ourselves and which parts do we want to maintain in open source? There are several parts that are identical, basic functionality,\u201d says \u00d6stberg. If these basic components are developed and maintained collaboratively with other companies, the investment can be shared. In other words, software doesn\u2019t have to make cars more expensive. Rettstatt elaborates that the \u201cbasis,\u201d i.e. the non-differentiating parts of the car\u2019s software that are developed as open source, could include the operating system, the communication layer, vehicle diagnostics, and update mechanisms. By standardizing these components, other OEMs might adopt them too, creating shared costs and broader industry alignment in vehicle software development.<\/p>\n\n\n\n But what does \u201coperating system\u201d mean in the context of a car?<\/strong> <\/strong>\u00d6stberg explains that it refers to a \u201cchip-to-cloud architecture\u201d<\/strong>, encompassing everything from standardizing chips and communication interfaces to defining how applications are integrated. Within this structure, multiple operating systems, such as Linux, QNX, and Android<\/strong>, are in use.<\/p>\n\n\n\n Leicht then asks: <\/strong>Why do OEMs develop their own architecture if it\u2019s [apparently] non-differentiating and invisible to customers?<\/strong> <\/strong>\u00d6stberg points out that each OEM must be able to analyze user behavior to inspect and adapt features and services \u2013 this ability is<\/strong> a differentiator: “<\/em>After all, how can the world function without competition?” Rettstatt agrees, emphasizing that differentiation lies in the customer experience: \u201cthe feeling that I have in a car.\u201d<\/p>\n\n\n\n How do OEMs align on a common foundation? Would they relinquish parts of their software stacks for a shared open source platform?<\/strong> \u00d6stberg explains that the idea is for each participating company to contribute different parts of its stack to the open source community, for example, Mercedes-Benz contributed its diagnostics platform [as<\/strong> <\/strong>Eclipse OpenSOVD].<\/strong><\/a> The goal is to build a comprehensive base platform for collaborative development.<\/p>\n\n\n\n \u201cIf you\u2019d like to contribute something, you are welcome to do so. If you\u2019d like to use an open source component, you\u2019re welcome to do so, but you\u2019ll have to adhere to the rules.\u201d<\/p>\n<\/blockquote>\n\n\n\n Rettstatt introduces the Eclipse Foundation<\/strong>, explaining its governance model and principles for collaboration. \u201cIt sounds unreal, but we\u2019re all working with [the same] standards, by different vendors.\u201d He compares this to buying electrical sockets from different vendors, all of which are compatible with standard plugs.<\/p>\n\n\n\n How can this open source ecosystem succeed despite the fierce competition among companies?<\/strong> \u00d6stberg explains: \u201c<\/em>That\u2019s why we opted for a sourcecode-first approach […]. In the end, what counts is the number of contributions and the number of users, i.e. how many people have downloaded and used the contributions?\u201d Rettstatt agrees, adding that even before the official contribution of Eclipse OpenSOVD, the announcement alone sparked interest, with people asking where to get the code and how to contribute.<\/p>\n\n\n\n So what is open sourcing all about?<\/strong> <\/strong>A way to cut development costs, or to improve vehicle software? Rettstatt is clear: it\u2019s both<\/em>. \u00d6stberg adds that it also saves time, an important factor in the face of geopolitical instability and strong competition. He calls open source a \u201cglobal solution\u201d<\/strong> that is unaffected by export restrictions, since the code is always publicly accessible. Rettstatt also clarifies that open source software is not \u201cfree\u201d<\/strong>: once contributed to a foundation, it requires ongoing investment<\/strong> in development and community engagement.<\/p>\n\n\n\n He adds that <\/strong>the biggest value is for developers<\/strong>, who are proud to contribute to projects with real-world impact, this in turn supports the cultural shift toward open source and code-first thinking.<\/p>\n\n\n\n Rettstatt underscores that the Eclipse Foundation<\/strong><\/a>, and all<\/strong> <\/strong>Eclipse SDV projects<\/strong><\/a> <\/strong>under its umbrella, operate under EU law and follow a proven governance model<\/strong> that ensures all code contributions are thoroughly vetted. Although, as Leicht notes, balancing global accessibility with national or regional legislation can be challenging, \u00d6stberg calls open source a \u201chuge opportunity.\u201d A critical mass of contributors and adopters, he says, will make this initiative successful.<\/p>\n\n\n\n What about software update cycles?<\/strong> <\/strong>\u00d6stberg reports that currently, Mercedes-Benz SDVs receive a major update every quarter<\/strong>, while app updates and cloud-based services are rolled out independently.<\/p>\n\n\n\n How much room will OEMs still have for differentiation?<\/strong> <\/strong>“If the basic stack is more controllable \u2013 as is the case with open source \u2013 and one function is too risky in the sense that it involves giving up too much control, we can still choose to leave it out,” says Rettstatt. \u201cWhereas when we buy a ready-made stack, we need to accept it as it is.\u201d<\/p>\n\n\n\n If software is increasingly decoupled from hardware, will that enable longer-lasting or more modular hardware?<\/strong> Although Moore\u2019s Law still holds, and OEMs must follow hardware platform advancements to remain competitive, \u00d6stberg says the industry is undergoing a broader transformation. This includes active discussions on where and when firmware and hardware updates are necessary \u2013 also taking into account regional differences, such as the fact that S-Class buyers in China are typically younger than those in Germany.<\/p>\n\n\n\n But is the automotive industry transforming fast enough?<\/strong> \u201c<\/em>We are competing with China on equal footing,\u201d says \u00d6stberg, emphasizing that, in the end, competitiveness is what truly matters, while acknowledging that China serves as an important benchmark. Rettstatt adds that unlike European companies<\/strong>, Chinese OEMs don\u2019t carry the burden of legacy fleets and services, which increases the complexity and overhead for European manufacturers.<\/p>\n\n\n\n Will OEMs become software companies?<\/strong> <\/strong>Will they start monetizing their software and transform into full-fledged software vendors? \u00d6stberg says that although Mercedes-Benz will continue to integrate more software into its products and DNA, it will remain a product-focused company<\/strong>: “A software company sells software. Mercedes-Benz sells products. But the software and data competency at Mercedes-Benz is transforming.\u201d<\/p>\n\n\n\n The MoU was also featured<\/strong> in Philipp Raasch\u2019s industry podcast The Autopreneur<\/em>. In preparation for the episode<\/strong><\/a> that was published on 6 July, Raasch interviewed Markus Rettstatt<\/strong> from Mercedes-Benz. The title of the episode is: \u201cWhy BMW, Mercedes, and Volkswagen Are Suddenly Building Software Together.\u201d<\/em><\/p>\n\n\n\n Raasch opens the episode with a question he says he\u2019s often asked: \u201cIsn\u2019t there anything positive you can report about the German automotive industry?\u201d He describes the MoU as not just \u201cpositive\u201d but \u201chistoric.\u201d<\/p>\n\n\n\n The moderator then briefly summarizes the challenges automakers are facing in the SDV race: small production volumes<\/strong> (compared to companies like Apple), maximum complexity<\/strong>, and OEMs working in silos on proprietary software. At the same time, software is becoming increasingly central to vehicles. According to recent research Raasch cites, by 2030, software could account for up to 40% of a car\u2019s value<\/strong>. There\u2019s also significant time pressure, not least from tech companies like Xiaomi<\/strong>, which have begun building their own vehicles. The takeaway: no single company will be able to manage this transformation alone<\/strong>.<\/p>\n\n\n\n This is why the MoU arrives at a critical moment<\/strong>.<\/p>\n\n\n\n \u201cWhat\u2019s special [about this initiative] is that they are doing this open source. The code is public, accessible to everyone. It\u2019s being managed by the Eclipse Foundation, an independent organization that has overseen open source projects since 2004. An organization rooted in Europe, by the way. In 2020, they moved their headquarters to Brussels.\u201d<\/p>\n<\/blockquote>\n\n\n\n Raasch then explains why he considers this move historic<\/strong>:<\/p>\n\n\n\n The moderator also references past examples of automotive software collaboration<\/strong>, such as HERE<\/strong> and Catena-X<\/strong>.<\/p>\n\n\n\n Raasch quotes Markus Rettstatt<\/strong>, who emphasizes that the code-first approach<\/strong> of the Eclipse SDV Working Group<\/strong> and Eclipse S-CORE<\/strong> ensures a practical, \u201clearning by doing\u201d effort that will accelerate progress. This is reflected in the initiative\u2019s ambitious roadmap<\/strong> <\/strong>(the 0.5 release is targeted for October 2025<\/strong><\/a>).<\/p>\n\n\n\n As in the Moove<\/em> podcast, Raasch explains that the 11 companies will collaborate only on a non-differentiating core stack<\/strong>, while the differentiating components<\/strong> \u2013 those that shape the user experience<\/strong> \u2013 will remain the responsibility of each OEM. Currently, 40% of development capacity<\/strong> is spent on basic, non-differentiating functionality; through joint development, experts believe this can be cut to 20%<\/strong>.<\/p>\n\n\n\n Raasch concludes by noting that openness is part of the strategy<\/strong>: the more companies and developers adopt and contribute to the code, the better it will become.<\/p>\n\n\n\n Raasch\u2019s personal take on the MoU:<\/p>\n\n\n\n \u201cI think this initiative could really become a game changer. The insight that software is becoming a core competency isn\u2019t new. What\u2019s new, though, is the willingness to collaborate. It\u2019s a bit like coming of age after years of experimenting and trying things out. The key realization is that software development is governed by different rules: you don\u2019t have to create everything on your own. You can \u2013 and should \u2013 collaborate. This is completely normal in the software world, but in the automotive industry, it\u2019s quite new. Will this project be a success? The chances are better than in previous attempts. The pain is greater, the costs are exploding, and time is running out. What\u2019s more, the approach is much more pragmatic. And there\u2019s yet another advantage: people know about the mistakes made in the past, so they\u2019re aware of what doesn\u2019t work. At least, that\u2019s what I hope. A decisive factor will be whether the companies stick with it. A declaration of intent is nice, but it\u2019s not binding. And in automotive, we know that such things are often no more than marketing and show, and in the end, nothing comes of it. We\u2019ll see. I, for my part, will keep my fingers crossed for this initiative to become the German success story we so urgently need right now.\u201d<\/p>\n<\/blockquote>\n\n\n\n If you’d like to be part of this game-changing journey, get involved<\/strong><\/a> in Eclipse SDV!<\/p>\n","protected":false},"featured_media":5740,"template":"","meta":{"_acf_changed":true},"tags":[],"class_list":["post-4017","blogs","type-blogs","status-publish","has-post-thumbnail","hentry"],"acf":[],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\t![\"megaphone](\"https:\/\/blogs.eclipse.org\/sites\/default\/files\/styles\/large\/public\/2025-07\/SDV%20Community%20Day%20-%20Event%20Card.jpg?itok=2FZsknKp\")
<\/figure>\n\n\n\nPodcast #1: \u201cMoove\u201d<\/h2>\n\n\n\n
SDV: Definition & Implications<\/h3>\n\n\n\n
The Relevance of Open Source<\/h3>\n\n\n\n
Open Source Collaboration, the Automotive Way<\/h3>\n\n\n\n
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The Future of Software-Driven Vehicles<\/h3>\n\n\n\n
Podcast #2: The Autopreneur<\/h2>\n\n\n\n
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What Sets This New Initiative Apart?<\/h3>\n\n\n\n
\u201cThis Could Be a Game Changer\u201d<\/h3>\n\n\n\n
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