Automotive giant, Stellantis, has opened up on some key details on how it plans on transitioning its business model in line with advancements in electrified vehicles and new, connected vehicles that it believes will provide highly-lucrative potential revenue streams in the future.
The parent company of companies such as Alfa Romeo, Fiat, Chrysler, Citroen, and Maserati, and more, says that it plans on investing more than 30 billion euros into new software and electrification advancement by 2025, believing that new connected cars and subscription models will provide a healthy bottom line.
Stellantis expects this to take the form of more than 4 billion euros of revenue by 2026 through software-enabled products and subscriptions, which could top 20 billion euros by 2030. As a result, it is investing massively into new AI-driven technologies, partnerships with BMW and electronics giant Foxconn.
In terms of what the future fleet of vehicles will look like, Stellanis says that by 2030, more than 34 million connected vehicles will be on the roads, with the majority fitted with over-the-air compatible updates by 2024.
These vehicles provide a platform for the company to issue digital updates to the buying public that unlock certain features, or even potential performance upgrades from software updates that tap into more power from the electric motors; similar to what we’ve seen from Polestar’s recently announced over-the-air performance upgrade that is priced at around 1000 euros.
Stellantis is also gearing up for the launch of three new AI-driven platforms that will hit the market by 2024, with the announcement of a STLA Brain, STLA SmartCockpit and the STLA AutoDrive.
The STLA Brain will, as the name suggests, become the smart unit that can transform software updates into tangible, hardware improvements, while the SmartCockpit system will offer more personalised cabin options, and the AutoDrive system offers Level 2, 2+ and Level 3 autonomous driving developed in part with BMW. These autonomous driving capabilities will be constantly upgraded with over-the-air software updates.
“Our electrification and software strategies will support the shift to become a sustainable mobility tech company to lead the pack, leveraging the associated business growth with over-the-air features and services, delivering the best experience to our customers,” says Carlos Tavares, CEO of Stellantis.
“With the three all-new AI-powered technology platforms to arrive in 2024, deployed across the four STLA vehicle platforms, we will leverage the speed and agility associated with the de-coupling of hardware and software cycles.”