The Evolution of SDV Architectures - Innovations, Challenges and Opportunities

In this exclusive interview, Johannes Krieg, Manager Software-Defined Car at Mercedes-Benz Tech Innovation, shares insights into the company’s transition to SDVs. He discusses the shift from domain-centric to zonal architecture and the cultural and organisational changes required for successful SDV deployment. Johannes also reflects on the influence of Chinese OEMs and identifies which emerging technologies will be potential game changers for SDVs over the next five years.

Automotive IQ: To start, can you give us an overview of your role and day-to-day responsibilities at Mercedes-Benz Tech Innovation?

Johannes: My daily business is working on the next generation of MB.OS car platforms, especially central ECUs. That means that my working group and I are responsible for future automotive software architecture on the middleware layer. Besides that, I am highly involved in challenging today’s automotive software strategy and gain deeper insights into tomorrow’s opportunities – and what we need to adapt. We work intensively to explore and implement new technologies that offer outstanding functionality and user experience to our customers.

Automotive IQ: As a Software-Defined Car Manager, on a high-level, what are you most excited about as the industry transitions from domain-centric to zonal architecture, ushering in a vehicle architecture designed for the future?

Johannes: Rather than being solely excited about the shift from one technology to another, I am fascinated by the potential that comes with the abstraction of automotive software layers, encompassing hardware and software, middleware and applications, as well as mechatronic and digital communication. This abstraction is crucial, as it opens up innovation and allows us to deliver new functionalities to our customers more quickly and efficiently.

Moreover, this transition presents an excellent opportunity to rethink how we develop and implement new functions. 

The future of vehicle development lies in harmonizing hardware and software, and I am enthusiastic about embarking on this exciting journey alongside my colleagues and various industry stakeholders.

Automotive IQ: In your view, what are some of key points strategic leaders at OEM companies need to consider if they are still determining whether or not they want to embark on the SDV journey?

Johannes: I would strongly advise not to hesitate. There is no alternative to Software Defined Vehicles if you want to stay on track and remain competitive. However, be aware that the journey involves more than just technical challenges; organizational changes are equally crucial. The transition to SDVs and the abstraction of EE layers break down silos and necessitate a fundamental shift in how we develop functions for our customer. Embracing this change is essential for future success and innovation.

Automotive IQ: Can you share any insights or lessons learned along the way when Mercedes-Benz Tech Innovation thought about/rolled out SDV deployment?

Johannes: There is no change without transformation. Therefore, you need something that empowers you to drive change. [MP1] At Mercedes-Benz, our biggest motivator is always the customer, who remains our top priority. The most significant lesson we've learned is to make changes not for technical or business reasons, but for the benefit of the customer.

We also have learned that understanding and responding to our customers' needs and expectations is crucial. This requires continuous adaptation and innovation in our development processes. Implementing Software Defined Vehicles (SDV) was a major step in this direction. We had to navigate not only technological challenges but also organizational changes to break down silos and foster a more collaborative work environment.

Automotive IQ: All eyes are on Chinese OEMs for the next big automotive development. In your personal opinion, how has influx of Chinese vehicles and innovation impacted how vehicles are being designed and build in the rest of the world?

Johannes: The influx of Chinese vehicles and innovation has had a profound impact. Chinese OEMs have demonstrated the incredible potential of starting from a green field, free from the constraints of legacy systems and processes. Their success in creating highly competitive products has significantly influenced industry discussions and reshaped global expectations.

The remarkable progress achieved by Chinese OEMs has not only introduced new competitive dynamics but also encouraged a broader adoption of cutting-edge technologies and practices. Their focus on rapid innovation serves as a valuable lesson for global automakers, highlighting the importance of staying agile and responsive to market changes.

Overall, the influence of Chinese vehicles and innovation is driving a transformative wave in the automotive industry, inspiring companies worldwide to embrace new possibilities and strive for excellence in their future developments.

An important aspect was the necessity to look beyond our immediate scope and learn from the best practices and innovations of other OEMs and industries. This helped us refine our strategies and develop new approaches that are both more efficient and customer-oriented.

In summary, deploying SDV was not just a technical endeavor but also a cultural transformation at Mercedes-Benz. This journey has taught us that true innovation and progress can only be achieved by consistently focusing on the needs of our customers.

Automotive IQ: What lessons can global automakers learn from the approaches and advancements made by Chinese OEMs in the SDV space?

Johannes: Challenge the status quo. Many solutions on the market today address the questions of yesterday. Currently, many OEMs build large central ECUs in-house, which necessitates re-evaluating processes that were established when each function had its own smaller ECU created by external suppliers.

Automotive IQ: How do OEMs currently view the evolution of SDV architectures, and what challenges do they foresee as the technology continues to mature?

Johannes: As an OEM, we must focus on functions for our customers. We should evaluate what differentiates us in the market from others and what constitutes a commodity. It is essential to adopt an open-source approach in our development processes. Let us collaborate with the market to engineer the basic functionalities. In addition to technological advancements at the hardware level, there will also be significant changes at the software level.

We must also consider that customer needs continue to evolve and require innovative solutions. Integrating customer feedback is vital to developing products that meet and exceed expectations. Additionally, we should focus on promoting durable and sustainable technologies that are both economically and environmentally sensible. Through continuous research and development, we can ensure that our products consistently meet the latest standards and requirements.

Automotive IQ: Looking ahead, which emerging technologies do you see as potential game-changers for SDVs over the next five years?

Johannes: Mixed criticality is an important concept that will drive advancements in SDVs in the coming years. The ability to manage different safety levels and varying reaction times within a single chip architecture is revolutionary. This means integrating functions with differing levels of criticality seamlessly, ensuring both high performance and reliability.

Another pivotal technology is virtualization. Its utility extends beyond mere testing purposes to actual runtime operations. This is akin to the practices we observe in classical IT setups, where virtualization plays a crucial role in improving efficiency and flexibility. Virtualization in SDVs promises to bring similar benefits, allowing for dynamic allocation of resources, better system management, and enhanced security.

In the next five years, these technologies will redefine the landscape for SDVs, enabling more sophisticated and safer autonomous driving solutions. They will facilitate the development of more adaptable and resilient systems, capable of meeting the evolving demands of consumers and the challenges posed by the global automotive market.

With these advancements, OEMs will be better equipped to innovate and push the boundaries of what is possible in vehicle design and functionality. Such progress will not only enhance the driving experience but also pave the way for a future where SDVs are an integral part of everyday life.

Automotive IQ: What can attendees expect from your session at Cyber Security, Connectivity and SDV Week 2025 in November?

Johannes: An honest view on the current chances that comes along with the challenges of Software Defined Vehicles.

Johannes will be discussing the SDV landscape in further detail at Automotive Cyber Security, Connectivity and SDV Week 2025.

Automotive Cyber Security, CV and SDV Week

Interested in hearing more? Download the agenda for Automotive Cyber Security, Connectivity and SDV Week 2025, taking place on 18th - 20th November, 2025 in Berlin, Germany.

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