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Associated Press December 8, 2021 09:44:52 IST
The automaker Stellattis announced a strategy on Tuesday to embed AI-enabled software in 34 million vehicles of its 14 brands, hoping that technological upgrades will help it bring 20 billion euros (22.6 billion US dollars) in annual revenue by 2030. income.
CEO Carlos Tavares (Carlos Tavares) announced that this move is part of a strategy to transform a car company into a "sustainable mobile technology company" whose business growth comes from Internet-related functions and services. This includes using voice commands to activate navigation, online payments and order products.
The company is expanding its existing partnership with BMW in partial autonomous driving, with iPhone maker Foxconn in customizing the cockpit, and Waymo to push their autonomous driving work to the light commercial vehicle delivery fleet.
Stellantis' embrace of artificial intelligence and extended software-supported vehicles is part of a broader transformation of the automotive industry, and it is competing for more fully electric and hybrid propulsion systems, more autonomous driving features, and enhanced car connectivity.
Stellantis believes that business growth comes from Internet-related functions and services. This includes using voice commands to activate navigation, online payments and order products. Picture: Fiat
Ford and General Motors also hope to substantially increase revenue from similar online subscription services. But automakers face huge competition from monthly consumer spending such as movie and music streaming services, news media, and Amazon Prime.
Stellattis, which was formed by the merger of PSA Peugeot and FCA Fiat Chrysler, stated that the software will be seamlessly integrated into the lives of customers, with the ability to update in real time, and provide upgraded services over time.
New products will include subscribing to autopilot features, purchasing car insurance based on usage, and even increasing the possibility of vehicle power by adjusting the increase in horsepower.
As a benchmark, Stellattis generates 400 million euros in revenue through software generation services installed on 12 million cars.
To achieve its goals, Stellattis will expand its software engineering team from 1,000 to 4,500 in North America, Asia and Europe. More than 1,000 expanded teams will be retrained internally.
Stellantis also announced a new partnership with Foxconn to develop semiconductors to meet 80% of the company's needs and simplify the supply chain. The first microchips of the partnership are planned to be installed in vehicles in 2024.
This is Stellattis’s way of ensuring the supply of computer chips in the future to prevent another global shortage, which has forced almost all automakers to temporarily close their factories.
Tavares said in a statement: "This will also improve our ability to innovate and build products and services faster."
The automaker also stated that it is developing a new electrical and software system that will be used in four new all-electric vehicle platforms. The company plans to use these platforms to manufacture small, medium, and large vehicles, as well as truck body frames.
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