Stellantis' AI strategy targets $22.6b in revenues by 2030 Business 360

Stellantis' AI strategy targets $22.6bn in revenues by 2030

This undated image shows the presentation made by the representatives of Stellantis. Photo: Stellantis Youtube video

MILAN: Carmaker Stellantis announced a strategy Tuesday to embed AI-enabled software in 34 million vehicles across its 14 brands targeting 20 billion euros ($22.6 billion) in annual revenues by 2030.

CEO Carlos Tavares heralded the move as part of a strategy that would transform the car company into a “sustainable mobility tech company,” with business growth coming from over-the-air features and services.

It includes key partnerships with BMW on autonomous driving, iPhone manufacturer Foxconn on customised cockpits and Waymo to expand their autonomous driving partnership into a light commercial vehicle delivery fleet.

Stellantis’ embrace of AI and expansion of software-enabled vehicles is part of a broad transformation in the auto industry, with a race toward more fully electric and hybrid powertrains, more autonomous driving features and increased connectivity in automobiles.

Stellantis, which was formed from the combination of PSA Peugeot and FCA Fiat Chrysler, said the software integration would seamlessly integrate into customers lives, with the capability of live updates providing upgraded services over time.

New products will include the possibility to subscribe to autonomous driving features, purchase usage-based car insurance or even increase the power of the vehicle with a tune-up to add horsepower.

As a baseline, Stellantis currently generates 400 million euros in revenues on software-generated services installed in 12 million vehicles.

To meet the targets, Stellantis will expand its software engineering team of 1,000 to 4,500 in North America, Asia and Europe. More than 1,000 of the expanded team will be retrained in-house.

Stellantis also announced a new partnership with Foxconn to develop semiconductors to cover 80% of the company’s needs and simplify the supply chain. The first microchips from the partnerships are targeted to be installed in vehicles in 2024.

Source: RSS/AP

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