Car manufacturer Stellattis has announced a strategy to embed AI-enabled software in 34 million cars of its 14 brands

MILAN-The automaker Stellattis announced a strategy on Tuesday to embed AI-enabled software in 34 million cars of its 14 brands, hoping that technological upgrades will help it bring 20 billion euros (22.6 billion US dollars) by 2030 )’S annual 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's efforts to push its autonomous driving into a fleet of light commercial vehicle delivery.

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.

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 autonomous driving functions, purchasing car insurance based on usage, and even increasing the possibility of vehicle power by adjusting the increase in horsepower.

The company said that artificial intelligence will be able to automatically stop when the driver looks at an empty space and nods, or close the garage door when the driver forgets to do so. The vehicle will collect data, and Stellatis will use the data to develop new features.

Yves Bonnefont, the company's chief software officer, said that despite the competition, Stellattis believes people will want to buy services directly related to their vehicles. For example, consumers will find the value of charging packs for electric vehicles, navigation systems that connect vehicles to the same location, and remotely operating vehicles.

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 batch of microchips from the partnership is planned to be installed in vehicles in 2024.

This is Stellattis' 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 that the semiconductor transaction stems from Stellattis’ efforts to solve the chip shortage that plagued the automotive industry. He said that the company sees an opportunity to maintain the flow of chip supply while acquiring more complex semiconductors, which will be needed in the long run to increase the use of software. "We are able to jump to the next generation of products, which will have a higher level of performance," he said.

Tavares said that although Stellattis is looking for partners for autonomous driving, chips and cockpit design, it will develop its own software because it will become a core business.

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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