By Adria Calatayud

 

Mercedes-Benz Group AG said Wednesday that it expects software-enabled revenue to reach a figure in the high single-digit billions of euros by the end of the decade, as it detailed plans for its own operating system that will be launched mid-decade.

The German luxury car maker also said it has entered into a long-term navigation partnership with Alphabet Inc.'s Google, as part of which features and maps provided by the U.S. tech giant will be embedded into Mercedes-Benz's upcoming operating system.

Mercedes-Benz said its operating system, called MB.OS, will allow it to decouple hardware from software and to offer service bundles to customers. Software-enabled revenue from the bundles covering vehicle functions and driver assistance are expected to reach a figure in the range of low-to-mid single digit billions of euros by the middle of the decade and a high single-digit billion-euro figure by the end of the decade, the company said.

In 2022, Mercedes-Benz generated more than 1 billion euros ($1.06 billion) in software-enabled revenue from products and services such as navigation, live traffic or online map updates, it said.

The company said it will allocate a quarter of its research-and-development budget to software by the middle of the decade, but that its mid-term goal of reducing investment won't be affected.

 

Write to Adria Calatayud at adria.calatayud@dowjones.com

 

(END) Dow Jones Newswires

February 22, 2023 13:44 ET (18:44 GMT)

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