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Stellantis Expects To Generate Revenue From Its Planned Software For Its Cars


12/08/2021


Stellantis Expects To Generate Revenue From Its Planned Software For Its Cars
Auto major Stellantis is targeting to achieve a revenue target of 20 billion euros ($22.54 billion) by 2030 goods and subscriptions associated with its software in its aim to rival Tesla, the company said as it unveiled its software plan earlier this week.
 
According to CEO Carlos Tavares, the world's fourth largest automaker expects to have 34 million connected vehicles on the road by 2030, compared to about 12 million currently.
 
Stellantis stated that as part of its software push, it will implement three new technical platforms driven by artificial intelligence (AI) beginning in 2024.
 
"This is something that will put Stellantis among the leaders, if not the leader, in software and electronics," said Chief Software Officer Yves Bonnefont. The platforms are good enough to that if its competitors, Bonnefont added.
 
STLA Brain, one of the platforms, will deliver over-the-air (OTA) software upgrades, which Tesla currently does.
 
Stellantis said this year that it will invest more than 30 billion euros through 2025 to implement its electrification goal.
 
Bonnefont stated that the group's cars will transition from their existing dedicated electronic systems to an open software platform, using collaborations.
 
"We don't want to do everything by ourselves," he said.
 
Stellantis has already struck strategic agreements with firms such as BMW, iPhone maker Foxconn, and Alphabet Inc's Waymo to "continue to foster innovation, efficiency, and shared know-how," according to the company.
 
Stellantis, according to Bonnefont, should complete a joint venture with Foxconn by the end of 2021 to sell in-car and connected-car technology to the auto sector.
 
Stellantis also announced a preliminary agreement on a separate relationship with Foxconn to build purpose-built semiconductors for the automobile and other clients on Tuesday.
 
Stellantis, according to investors and experts, is playing catch-up in advanced technology investment, not just to Tesla, but also to conventional rivals like as Volkswagen and GM.
 
Tesla's market capitalization of more over $1 trillion illustrates the relevance of software skills in carmaker values.
 
From handling electric motors and batteries to supporting activities like autonomous driving, entertainment, and navigation, software is becoming increasingly important in automobiles.
 
Volkswagen anticipates 1.2 trillion euros in software-enabled car sales by 2030, accounting for about a quarter of the global mobility market, which is forecast to more than double to 5 trillion euros.
 
Self-driving software systems and other services like high-definition mapping and electric charging services are expected to generate money for automakers in the future.
 
For example, Volkswagen is considering charging as little as 7 euros per hour for self-driving features.
 
GM is one of those attempting to persuade investors that it can outperform Tesla in terms of technology and profitability.
 
GM informed investors in October that it wanted to treble its revenue by 2030, including $80 billion from technology-driven new companies like its Cruise driverless car operation.
 
Ford hired Doug Field, the former president of Apple's automobile project, last year to spearhead its advanced technology and embedded systems initiatives, while Renault of France is collaborating with Google to help build its infotainment systems.
 
(Source:www.cnbc.com)