Open-Source Code Is Changing How Cars Are Built

Automakers are joining forces on shared software to cut costs, move faster, and rethink how vehicles are developed in a digital age

8 Jan 2026

The global automotive industry is undergoing one of its biggest shifts in decades, as software takes on a central role in how vehicles are designed, updated and differentiated.

Rather than focusing solely on factories and supply chains, carmakers are investing heavily in software development, where code now governs functions ranging from driver assistance and infotainment to over-the-air updates. As vehicles become more connected and autonomous, software is accounting for a rising share of development costs and engineering effort.

To manage that complexity, manufacturers and suppliers are increasingly backing shared, often open-source, software platforms. The aim is to reduce duplicated work, shorten development cycles and keep pace with changing consumer expectations, while allowing companies to compete on features that define their brands.

“This is about focusing investment where it matters most,” said an automotive software executive involved in a multi-company initiative. By collaborating on core software layers, companies can move faster while still differentiating on customer experience, the executive said.

Suppliers have been among the strongest supporters of this approach. Bosch has made collaborative software development a key part of its growth strategy, arguing that shared standards ease integration across different vehicle models and regions and help bring products to market more quickly.

Automakers, however, are moving more cautiously. Ford and other manufacturers have said publicly that while open-source tools can help lower costs and speed development, carmakers must retain control over safety-critical systems and customer-facing functions. Regardless of who writes the code, responsibility for vehicle safety remains with the manufacturer.

The shift is also changing competitive dynamics. Shared platforms lower barriers for smaller software companies, widening access to vehicle systems and increasing supplier diversity. At the same time, automakers can reduce dependence on any single technology partner, strengthening their negotiating position.

Challenges remain, particularly around cybersecurity, governance and accountability. But industry executives say momentum is building. As cars increasingly resemble digital platforms on wheels, collaboration on software is becoming a strategic necessity, even as competition on the road remains intense.