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Luxury Car Maker Mercedes-Benz Speeds Up Its Push For Developing In-House Software

Luxury Car Maker Mercedes-Benz Speeds Up Its Push For Developing In-House Software
Mercedes-Benz announced the opening of a new 200 million euro ($217 million) software centre in Sindelfingen on Friday. This is the company's latest investment in its strategy of enhancing its in-house software skills and expertise which in turn is a part of its strategy of trying to bring its own MB.OS operating system to the global market by 2024.
About 3,000 new employees are expected to be employed for this purpose throughout the world by the luxury carmaker. Out of that number the company has already employed about 300 of them already who will work on the new operating system in Sindelfingen. The new set of employees is expected to work on everything from in-car entertainment to autonomous driving.
The centre is part of Mercedes-larger Benz's endeavour to streamline its software strategy from a patchwork method of bringing in technologies from a variety of suppliers to controlling the core of its software offering.
"We take responsibility for software architecture and integration – that is our main goal," Chief Software Officer Magnus Oestberg said in a roundtable.
"We don’t do everything ourselves – we place value on partnerships, but of course the parts that are most important for us, we do in-house."
One such collaboration that the company has established is with Nvidia, a leading computer graphics company based in the United States, with whom Mercedes-Benz signed a deal in 2020 to create assisted and self-driving functionalities for the MB.OS system. The companies expect the collaboration to yield results in two years.
The automaker is 600 software engineers short of its aim of building a worldwide staff of 10,000 in Berlin, China, India, Israel, Japan, and the United States.
"The profile of a software engineer is highly sought-after - demand is considerably higher than supply," Chief Technology Officer Markus Schaefer said.
In a survey of 572 car executives conducted by research firm Capgemini, 97 per cent claimed that four out of ten in-house staff, ranging from IT architects to cloud management specialists to cybersecurity experts, will need software capabilities within five years.

Christopher J. Mitchell

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