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Automakers adopting AI for vehicle development

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2026-10-25 13:55 UTC → 2026-10-25 20:51 UTC · added ~~removed~~

Major automotive manufacturers are integrating artificial intelligence to accelerate vehicle development cycles and increase competitiveness against Chinese manufacturers. General Motors is overhauling engineering processes to reduce development time from four or five years to approximately two years. The company is utilizing AI to analyze chemical combinations for battery development and plans to implement a centralized electrical architecture to lower costs. Additionally, GM is targeting the deployment of eyes-off autonomous driving technology on divided highways by 2028, starting with the Cadillac Escalade IQ. Hyundai Motor Group is implementing a group-wide AI strategy to reduce its development cycle from 43 months to 30 months. The group has established an AI Governance Task Force and an AI Ethics Committee, with over 70% of employees utilizing AI tools weekly. Mercedes-Benz is also moving to halve development time by implementing an AI system called PLM.AI, investing approximately 500 million euros to reduce the development cycle from 56 months to 29 months. This technology is expected to provide efficiency gains in engineering processes such as crash simulations. However, the company is currently navigating a profitability crisis, with its unadjusted return on sales for the automotive division dropping to 0.2 percent in the second quarter. This downturn is attributed to a declining market in China, high US tariffs, and geopolitical tensions. In response, Mercedes-Benz is implementing a major cost-cutting program in Germany involving staff ~~reductions~~ reductions, voluntary redundancy packages, and stricter mobile work requirements, while also shifting production to lower-cost ~~environments.~~ environments, such as moving Sprinter van production to Poland by the end of 2029. The economic strain has also impacted the supply chain, notably resulting in the insolvency of German supplier Aios.

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