The leaders of auto giant Stellantis NV on Dec. 7 outlined a plan to generate sales of more than $20 billion a year from software and related services by 2030, saying they will launch new platforms powered by artificial intelligence to do so while also relying on key partnerships.
The big technology push from Stellantis, which was formed early this year through the merger of Fiat Chrysler and PSA Group, is designed to keep the world’s No. 4 vehicle manufacturer in the tech mix with its peers as well as with EV trailblazer (and much more highly valued) Tesla. CEO Carlos Tavares told attendees of a virtual presentation his team expects to have 34 million connected cars on the road in 2030, up from about 12 million now. Much of that growth will be powered by tech platforms whose use will also help the company save more than $1 billion in annual costs come the beginning of next decade, in part by being able to push out software updates to improve performance and safety and lengthen vehicles’ lives.
“Our electrification and software strategies will support the shift to become a sustainable mobility tech company to lead the pack,” Tavares said in a statement. “We will leverage the speed and agility associated with the de-coupling of hardware and software cycle.”
Chief Software Officer Yves Bonnefont said a big part of the ambitious plan – for context, software and services sales this year will be about $400 million and the $22 billion forecast amounts to more than a quarter of Stellantis’ total 2020 revenues – will be to scale up Stellantis’ global network of talent. The company plans to grow its software engineering group to 4,500 globally by 2024 and is setting up a software and data academy that aims to reskill more than 1,000 employees as part of that effort.
Stellantis’ tech upgrades will include its core architecture, called STLA Brain, as well as smart-cockpit services and an automated driving platform. Executives’ plans call for all three systems to be in every new car made by Stellantis, which is home to 14 brands, by 2024.
Tavares, Bonnefont and other Stellantis leaders, who said they will further detail their long-term plans in a few months, have developed a number of tech partnerships – including with BMW and Waymo – and expect to set up others while also developing a set of proprietary tools. They also announced on Dec. 7 a collaboration with Foxconn to design four families of semiconductors that will over time come to cover more than 80% of Stellantis’ needs.
Shares of Stellantis (Ticker: STLA) were up more than 2% in midday trading Dec. 7. Over the past six months, they have lost about 10% of their value.