Carmakers Share Code in Bold Bid for the SDV Future

BMW, Mercedes Benz and VW join S Core to speed progress on software defined vehicles

9 Dec 2025

On June 23rd 2025 BMW, Mercedes-Benz and Volkswagen signed a memorandum of understanding to join S CORE, a scheme to build common software foundations for software-defined vehicles (SDVs). The pledge marks a rare moment of concord among firms that usually compete for every technological edge.

The aim is limited but strategic: to create shared, non-differentiating modules that sit deep in the software stack. These components do not shape a brand’s look or feel, yet they consume vast engineering effort. Pooling them promises lower costs, fewer duplicated tasks and more time for features that drivers actually notice. Early reactions suggest that a shared base could shorten the long march toward fully programmable cars, just as development budgets are tightening.

The logic is clear. Modern vehicles behave increasingly like high-performance computers that demand frequent updates, sophisticated driver-assistance and polished digital services. Building all of this alone has become arduous. A common layer, its backers argue, could speed releases and improve resilience at a time when delays can sink product cycles. Analysts see the pact as a defensive move against spiralling software demands.

Doubts persist. Aligning three giants may slow decisions when upgrades need consensus. Safety worries linger, too, because even “basic” modules sit close to functions that keep passengers alive. A Volkswagen engineering lead remarked that the opportunity is substantial but depends on tight coordination and transparent oversight.

Yet the mood is mostly upbeat. S CORE signals an industry willing to abandon old silos in favour of collective plumbing for the software age. Should it work, the scheme may trim costs, hasten updates and unleash fresher ideas across global carmaking. The question now is whether common code can deliver uncommon speed