Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Automakers
December 07, 2021 02:51 AM

Stellantis launches $23 billion software push

Automaker will deploy three new tech platforms powered by artificial intelligence

staff and wire reports
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Stellantis HW, SW and AI Platform Solutions

    MILAN -- Stellantis plans to generate around 4 billion euros ($4.5 billion) in additional annual revenues by 2026 and around 20 billion euros ($23 billion) by 2030 from software-enabled product offerings and subscriptions.

    Presenting its long-term software strategy on Tuesday, the automaker said it expected to have 34 million connected vehicles on the streets by 2030 from 12 million now.

    Stellantis said that, starting from 2024, it would deploy three new technological platforms powered by artificial intelligence, to be named STLA Brain, STLA SmartCockpit, and STLA AutoDrive.

    The automaker is extending existing tie-ups with Apple's assembly partner Foxconn, Alphabet's Waymo self-driving unit and BMW to build the three new tech platforms.

    The software business will generate high margins more like those at tech companies than the traditional auto business, Stellantis CEO Carlos Tavares said on Tuesday. He said the services and subscriptions that Stellantis will offer customers can help their vehicles last longer and have higher resale values.

    Mamatha Chamarthi, the head of Stellantis’ software business, said service and subscriptions will be “uniquely brand-specific” to differentiate the company’s 14 brands.

    The company will offer over-the-air upgrades that can upgrade customers’ vehicles in real time, she said. Dodge owners will be able to receive performance upgrades that deliver “an immediate horsepower boost while retaining emissions compliance,” she said. Alfa Romeo vehicles can get a sportier driving experience, while Ram pickups can increase their payload capability.

    In the past, making more money in the auto business meant selling customers on more options and higher-priced trim levels, Chamarthi said, but "our future is about offering customers software-based services."

    In 2022, Stellantis plans to roll out an insurance product that sets premiums based on a vehicle’s usage. It is scheduled to be introduced through the company’s captive lenders in Europe and North America before expanding to other parts of the world.

    Huge growth opportunity

    Chief Software Officer Yves Bonnefont said the new technological platforms would "certainly" match competitors' most advanced architectures.

    "This is something that will put Stellantis among the leaders, if not the leader, in software and electronics," he said on a call with reporters.

    "We really see software as a growth opportunity, something that can make a huge difference," Bonnefont said, adding that updates that could be done every quarter would bolster profit margins.

    Stellantis will move its vehicles from current dedicated electronic architectures to an open software platform, leveraging its partnerships,  Bonnefont said. "We don't want to do everything by ourselves," he said.

    Stellantis and Foxconn said on Tuesday they have signed a preliminary agreement to create a second partnership to co-design a family of dedicated microcontrollers that will eventually cover 80 percent of Stellantis’ needs.

    Stellantis and Waymo will start working on autonomous commercial vehicles for delivery services, the automaker said.

    Stellantis also has a partnership with BMW that dates back to a 2017 agreement with Fiat Chrysler to develop a self-driving vehicle platform. This will become one of the three platforms promoted Tuesday by Stellantis.

    Next battleground

    Stellantis, which was formed in January by the merger of Fiat Chrysler Automobiles and PSA Group, plans to boost the number of software engineers to 4,500, excluding through partnerships, with a hiring push and a dedicated academy to retrain staff members.

    Software is playing an increasing role in vehicles, managing electric motors and batteries, and set-up and support for a wide range of functions such as autonomous driving, entertainment and navigation.

    After electrification, developing software architectures with digital and self-driving features that automakers can charge extra for is fast becoming the next battleground.

    Tesla is widely seen as having a lead in software capability, while legacy automakers are scrambling to catch up.

    VW set up a standalone software business called Cariad to pool its sprawling software efforts, though it has suffered a number of setbacks in getting off the ground.

    Ford has hired a veteran of Tesla and Apple to spearhead digitization efforts, while Toyota's R&D unit is preparing an operating system with over-the-air software updates.

    By 2030, more than a fifth of automotive revenue will be software-derived, according to consultancy Capgemini.

    Focus on Technology: Sign up for our monthly newsletter that looks at advancements in all aspects of the vehicle including performance, autonomous driving, batteries and more.
    Related Article
    Stellantis says partnership with Foxconn will help bring chip supply stability
    RECOMMENDED FOR YOU
    New Toyota CEO Koji Sato faces big challenges in critical new era
    Recommended for You
    satoandakio.jpg
    New Toyota CEO Koji Sato faces big challenges in critical new era
    Tesla Model 3 red web_0.jpg
    UK has concerns over U.S. green subsidy act, finance minister says
    Renault Douai_Plant
    Renault will offer workers 7.5% pay increase, report says
    Capgemini Invent Head on automotive takeaways from CES 2023
    Sponsored Content: Capgemini Invent Head on automotive takeaways from CES 2023
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us