Stellantis’ AI strategy targets $22.6b in revenues by 2030

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Carmaker Stelantis on Tuesday announced a strategy to embed AI-enabled software in 34 million vehicles across its 14 brands, aiming for 20 billion euros ($22.6 billion) in annual revenue by 2030.

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MILAN – Carmaker Stelantis on Tuesday announced a strategy to embed AI-enabled software in 34 million vehicles across its 14 brands, aiming for 20 billion euros ($22.6 billion) in annual revenue by 2030.

CEO Carlos Tavares introduced the move as part of a strategy that would transform the car company into a “sustainable mobility tech company”, with business growth coming from over-the-air facilities and services.

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This includes key partnerships with BMW on autonomous driving, iPhone maker Foxconn on customized cockpits, and Waymo to expand its autonomous driving partnership in the light commercial vehicle delivery fleet.

Stelantis, which was created in conjunction with PSA Peugeot and FCA Fiat, said the software integration will integrate seamlessly into customers’ lives, with the potential for live updates providing enhanced services over time.

New products will likely include subscribing to autonomous driving features, purchasing usage-based car insurance or even increasing vehicle power with tune-ups to add horsepower.

As a baseline, Stelantis currently generates EUR 400 million in revenue on software-generated services installed in 12 million vehicles.

To meet the goals, Stelantis will expand its software engineering team from 1,000 to 4,500 across North America, Asia and Europe. Over 1,000 of the expanded team will be re-trained internally.

Stelantis also announced a new partnership with Foxconn to develop semiconductors to meet 80% of the company’s needs and streamline the supply chain. The partnership is targeted to install the first microchips in vehicles in 2024.

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