Stellantis plans to monetize software-enabled services on a grand scale

Stellantis plans to monetize software-enabled services on a grand scale
Stellantis is really stepping on the gas in transforming its value chain and business model. At its "Software Day", the parent company of car manufacturers such as Fiat, Opel, PSA, Citroen and others shared how it envisions the future of the car. According to this, the company wants to invest massively in software development - and also generate considerable revenues from the software and the services it enables.
By Christoph Hammerschmidt

Share:

Stellantis intends to invest more than 30 billion euros in the development of vehicle and mobility software as well as in the electrification of the vehicle fleet by 2025. The software is not only intended to increase comfort and safety when driving. Rather, the company also wants to use it to tap into new business opportunities – Stellantis expects revenues in the order of €4 billion annually as early as 2026, and this revenue stream is even expected to swell to around €20 billion in 2030. The source and basis of these revenues are the approximately 34 million connected cars that the car manufacturer plans to put on the roads by 2030. From 2024, most of them should be able to update their software via the air interface. Stellantis had previously announced an alliance with technology firm Foxconn to develop the essential vehicle semiconductors.

The intended transformation is to move the group’s vehicles to an open software-defined platform that seamlessly integrates into customers’ digital lives. Through regular OTA updates, Stellantis aims to bring new, innovative features and services to the car that were not yet developed or even known at the time of its manufacture. In this way, the vehicles will remain up-to-date for years after they have been manufactured.

To implement these services and features, Stellantis will develop three AI-based technology platforms to be launched in 2024: STLA Brain, STLA SmartCockpit and STLA AutoDrive.

Three platforms for Stellantis’ software-defined car

STLA Brain is fully OTA-enabled and highly customisable with 30 modules (compared to ten modules today). It is a service-oriented architecture that is fully integrated into the cloud and connects electronic control units in the vehicle to the vehicle’s central high-performance computer via a high-speed data bus. It does away with today’s rigid link between hardware and software generations and allows functions and services to be created and updated quickly without having to wait for a new hardware launch. The OTA updates drastically reduce costs for both customers and Stellantis, simplify maintenance for the user and support the residual value of the vehicle.

The STLA SmartCockpit, built on STLA Brain, integrates seamlessly into the digital lives of vehicle occupants to create a customisable third habitat. Studies show that customers spend an average of four years of their lives in their vehicles, and the trend is rising. STLA SmartCockpit, operated by Stellantis and Foxconn’s Mobile Drive joint venture, offers AI-based applications such as navigation, voice assistance, e-commerce marketplaces and payment services.

This is how the three Stellantis platforms are interlinked

The STLA AutoDrive platform, being developed in collaboration with BMW, will offer L2, L2+ and L3 autonomous driving features and will be continuously updated through OTA updates

Stellantis’ software strategy runs hand in hand with the electrification of the company’s vehicle portfolio, which was presented at EV Day in July 2021. The goal is to achieve more than 70 per cent of vehicle sales in Europe and more than 40 per cent of vehicle sales in the US with low-emission vehicles by 2030. Each of the company’s 14 iconic brands is committed to delivering best-in-class fully electrified solutions.

In addition to the cooperation with BMW and the deepened alliance with Foxconn unveiled today, Stellantis also plans to continue its development projects with Waymo. After hybrid versions of the Chrysler Pacifica equipped with the Waymo Driver provided thousands of fully autonomous rides in Phoenix, Arizona (USA), Stellantis and Waymo have now extended their partnership to local delivery services. Building on Stellantis’ leadership in light commercial vehicles and investment in electrification, the partners are collaborating on workflows focused on commercial development. Engineering teams will engage with Stellantis prototypes in 2022.

www.stellantis.com

Related articles:

Software makes the difference

European car makers back US solid state battery tech

Ford chip deal with GlobalFoundries shakes up automotive

Hyundai teams with Sonatus for next step in software-defined car

Volkswagen shifts R&D focus to digitisation, more electromobility

Open platform for software-defined car to speed development

Study: Software increasingly invades business models for car OEMs

KPIT, ZF join forces for automotive middleware

“Open systems have stronger assertiveness than closed ones”

eeNews Automotive
10s