"We have established software as a product at Mercedes"

Mr. Östberg, where does your operating system MB.OS currently stand?

The first version of our MB.OS is already available in the E-Class. There we have one of four domains in practice. The feedback from our customers is very positive and at the same time incredibly valuable for us. The second part, which is already live, is our cloud backend. It is the brain of our system. It supports us with OTA updates and is mainly responsible for data processing. This keeps us in constant contact with all our vehicles and customers. With the new CLA, MB.OS will be fully rolled out next year.

How do you define competitive differentiating content that you want to develop yourself and not share externally?

MB.OS is based on a so-called chip-to-cloud architecture that links all domains in the vehicle with our cloud backend. We are and remain the architects and project managers of this architecture and must fully master it. Our focus is on the software, without developing every single component ourselves. Our main focus is on the basic architecture and on the aspects that the customer directly perceives, such as the user interface. The "Mercedes feeling" should be conveyed through both physical elements and digital interfaces such as screens and voice assistants. We design these touchpoints with the customers ourselves. At the same time, we invest a lot of energy in partnerships, whether in the areas of voice control, navigation, or driver assistance systems. This is important so that we can discuss, understand, and design together on an equal footing. And something else changes with MB.OS…

And what would that be?

We are changing our business models with our suppliers. We no longer buy hardware and software as a unit, but separate them. This means that we buy specific hardware components, but precisely define which chips should be installed. We develop and deliver the software ourselves. This approach allows us to introduce new features more quickly.

Hyundai Launches Software Brand Pleos

At its in-house developer conference in Seoul, the Hyundai Group introduced its new mobility and software brand 'Pleos'. The Koreans also explained how they plan to improve the in-vehicle app network in collaboration with partners in the future.

Benjamin Müller

Mercedes-Benz opposes control by CarPlay of all screens in the vehicle. Where is your red line?

We are convinced that MB.OS offers a significantly better user experience than remote UIs, as it integrates all domains and is closely connected with our vehicles. This allows us to create offers and experiences that would not be possible with Android Auto or CarPlay. However, we are not fundamentalists: If someone has a preference for these systems in certain markets or for specific needs, we do not prohibit their use. The classic implementation of these remote UIs remains available as an option. However, our goal is to create a significantly better experience. An example of this is the complete integration of Dolby Atmos and Sound-to-Light, which allows the entire atmosphere in the vehicle to be adjusted. It is precisely this seamless integration and the resulting experience that make a Mercedes a Mercedes. This is also appreciated by our customers: Our analyses have shown that the use of our new user interface and our new system has increased significantly, while the use of the remote UI has decreased significantly.

Software and hardware in the automotive industry imply a different mindset: While the classical engineer strives for a one hundred percent solution, the software developer works on the open heart and updates in the field. Do you still have to explain these differences within the company often?

Automobil Elektronik Kongress 2025

Magnus Östberg is a speaker at the Automobil Elektronik Kongress 2025 on 24th and 25th June in Ludwigsburg. 

All information about the event and tickets can be found here.

We have already completed this journey, but it took a lot of time and energy. As I said before: We have established software as a standalone product at Mercedes. This is not just a marketing claim - it is the foundation of our entire software development. In the past, software was packaged in hardware and sold as a single product. We had to invest a lot of time to optimize our entire pipeline - we call it CI/CD (Continuous Integration/Continuous Deployment) - as well as our distribution chain. This not only affects the direct delivery to customers via OTA updates but also the distribution to factories, workshops, and various stations within Mercedes. Now, however, software is an independent, valuable component of our company. This journey may be different for every company, but for us at Mercedes, it is complete. We have taken the necessary steps to establish software as an integral and independent part of our product range.

You've already mentioned the keyword: How advanced is Mercedes-Benz with OTA updates? What hurdles still exist?

We are already using over-the-air updates, and our cloud system performs millions of these updates. The next big step will come with the comprehensive release of MB.OS. Then we will be able to support every domain with OTA updates. Currently, this is limited to a subset. The key advantage of our software architecture lies in standardization: By unifying the chips, the software base layer, and the interfaces, we can enable OTA updates for all domains.

You are currently working mainly on entertainment features in the vehicle, such as integrating the racing game "Need for Speed" into your models. What is the idea behind this?

Entertainment is very important for us. With automated driving, our customers will spend more and more time with digital content. We want to give our customers time back, giving them the opportunity to relax on longer journeys, whether in traffic jams or on long highway drives. Entertainment will therefore play an enormously important role. We already see this in China. Our customers there are very young compared to Germany, mostly in their 30s, and often buying their first vehicle. They are used to online gaming on mobile devices. That's why we decided on the cooperation with Need for Speed you mentioned - a perfect combination of entertainment and our sports brand Mercedes-AMG. Of course, the business model also has to be right, that's clear. But I would say, in the first step, it is more important to find offers that fit the Mercedes-Benz brand and our luxury claim.

How much do you have to deal with country-specific differences in software in your daily work, for example when we look at China?

Local adaptations are a daily focus for us in development. Just in April, we were in China discussing the latest topics. When it comes to country-specific differences, we have two major locations in China and recently established a new site in Shanghai. The goal is to integrate China-specific apps and local topics and ensure compliance with regulations. Our basic architecture is designed so that country-specific content plays a central role. This applies not only to China but also to Japan, Korea, and the USA. All customers have very different favorite apps that need to be available. If customers miss something, they switch to another system, and we want to avoid that.

Do you actually get enough well-trained specialists to be able to master the challenges of software in the vehicle?

We actually have no problem with that. Overall, we have integrated over 3,000 software experts into the company. That was our goal and we don't need more at the moment. These experts are, of course, not only based in Germany, but also in China, the USA, or India. To attract specialists with the right skills, it was crucial to clearly communicate our goals. We had to explain what we want to achieve and what challenges we can offer these specialists. It was very refreshing to hear that these talented engineers are eager to come to us and want to work with us. They appreciate the systemic challenges of the automotive industry. Unlike an algorithm for advertising, we deal with a product that moves in the real world and tackles complex challenges. Our specialists not only have to master one domain but also understand the connections with other domains. This aspect was a great advantage for us in attracting talented specialists - incidentally, also from large technology companies.

In recent years, there has been repeated criticism that some German OEMs are developing their own operating systems. What role do open source and collaboration play for you in software development?

The name "Operating System" is actually somewhat misleading. Of course, we do not develop everything ourselves, especially not the basic components. These parts are either purchased or used as open-source solutions. To your question: We are working intensively to be a part of the open-source community. We see it as a huge competitive advantage if we use standard and open-source components and can contribute our own standard components as open-source parts to the community. For us and for me, speed is an enormously important factor, and we can only achieve this speed by using standards. Open source is an essential tool in this.

To conclude, give us a little insight into your drawer: What can we look forward to from Mercedes-Benz in terms of software and user experience in the future?

The "Big Bang" will of course come with the official MB.OS release. But I can give some insights. We have already announced that artificial intelligence will be an enormously important component in our vehicles. New beta programs are already showing the direction we are heading. Another focus is on driver assistance, especially in China. Unlike in Europe, automated driving in urban traffic is already very relevant there. Level 2++, i.e., the ability to drive automatically from A to B in the city, is already becoming a reality in China. In Germany, too, we will push the boundaries further, for example by increasing the speed limit to 90 km/h for autonomous driving.

This article was first published at automotiveit.eu

Speedmasters of Software

How can the rapidly growing amount of data in vehicles be processed quickly and securely - and thus create added value? DevOps engineers ensure this. A job that becomes very complex with connected vehicles.

Chris Löwer