Stellantis Envisions Software-Enabled Future, Targets €20 Billion Incremental Annual Revenue By 2030
Stellantis is currently working on a number of software technologies
Stellantis has revealed details of its software strategy for the future. The manufacturer is apparently working extensively on developing software solutions for its future portfolio. Innovative tech and features in the connected mobility scene will be developed in the time ahead. These would make the various Stellantis products, including Jeeps, more advanced and hospitable vehicles to live with. The company plans to generate around €20 billion from these, in incremental annual revenue by 2030. This would be generated through software-based products and subscriptions.
The proposed software strategy will make future Stellantis products make a shift from the current dedicated electronics architecture to an open software-defined platform. This would support seamless smartphone integrations and OTA updates. Stellantis is apparently working on improving the connected car features and options from what they are in the present day. Thus, expect the future lineup to be capable of staying fresh and up-to-date for years.
The proposed softwares will make extensive use of AI, and three such tech platforms (STLA Brain, STLA SmartCockpit, and STLA AutoDrive) will be rolled out in 2024, across various vehicle models.
The manufacturer expects to have 34 million monetizable connected cars out by 2030. These numbers will be achieved in a phased manner, as Stellantis plans to reach 26 milion (€4 billion) by 2026 from the current 12 million mark. The 2030 vision of 34 million monetizable connected vehicles will translate to roughly €20 billion in annual revenues.
The company plans to invest big in technology and electrification (more than €30 billion through 2025!) and has also entered into strategic partnerships with some major names like BMW, Waymo, and Foxconn for the same.
Foxconn will develop a new family of purpose-built microcontrollers for Stellantis. A total of 4 chip families will be developed in the course of time, which would cover over 80% of the company’s microcontroller requirements. These are expected to roll out in 2024.
Waymo continues to supply autonomous driving solutions. They have now expanded their partnership to local delivery services too. The early prototypes of the new products are expected in 2022.
The 3 New Tech Platforms In The Pipeline
The 3 new technology platforms known to launch in 2024, across various nameplates. These will use new electrical/electronic architecture and an advanced software architecture- STLA Brain.
- STLA Brain is a new flexible, cloud-based, OTA compatible, service-oriented architecture that makes use of a High Performance Computer and a high speed data bus to deliver stunning experience to the occupants.
- STLA SmartCockpit is based on the STLA Brain, and seamlessly integrates with the digital lives of the occupants. It is being co-developed by Stellantis and Foxconn and would offer AI-based applications like navigation, voice assistance, e-commerce and more.
- STLA AutoDrive, is another tech that is being developed through a partnership with BMW, and it at the core, an autonomous driving system. It will offer level 2, level 2+ and level 3 autonomous driving to the driver.
The Software-Enabled Business Model Of Stellantis
The manufacturer has plans of generating revenue from software solutions based on 5 key pillars:
- Services and subscriptions
- Features on demand
- Data as a service and fleet services
- Vehicle pricing and resale value
- Conquests, service retention and cross-selling
Active Talent Acquisition
Much in keeping with its detailed software strategy, Stellantis is actively hiring and acquiring talents in the software and AI scenes. It is also building a software and data academy to retrain 1000+ internal engineers in multiple roles and thus build its own software community. Stellantis actually has plans of having a dedicated team of 4500+ software experts by 2024.