Stellantis N.V. today at its Software Day 2021 mapped out its software strategy to deploy platforms it says will generate about €20 billion in incremental annual revenues by 2030. The transformation will move its brands’ vehicles from dedicated electronic architectures to an open software-defined platform that will greatly expand the options customers have to add innovative features and services via regular over-the-air (OTA) 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, and delivering the best experience to our customers,” said Carlos Tavares, Stellantis CEO. “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 decoupling of hardware and software cycles.”

Stellantis plans to invest more than €30 billion through 2025 to execute its software and electrification transformation. Its software strategy comes after the company announced its vehicle electrification plans at EV Day in July 2021, which targets that more than 70% of its vehicle sales in Europe and more than 40% of vehicle sales in the U.S. will be “low emission vehicles” by 2030. It pledged that each of the company’s 14 brands is committed to offering best-in-class fully electrified solutions.

Stellantis will grow its software and connected services business through five key pillars: services and subscriptions, features on-demand, data as a service and fleet services, vehicle pricing and resale value, and conquests, service retention, and cross-selling. Today, the company has just 12 million monetizable (over the vehicle’s first five years of life) connected cars globally. By 2026, this is expected to grow to 26 million vehicles and generate about €4 billion in revenue; by 2030 it will reach 34 million vehicles and about €20 billion.

For one of the first services leveraging its data collection capabilities, Stellantis will launch in 2022 a usage-based insurance program through its captive finance arms in Europe and North America.

 

Three technology platforms coming in 2024

Beginning in 2024, over two years, Stellantis will roll out three new technology platforms across its four vehicle platforms—STLA Small, Medium, Large, and Frame. The heart of the transformation to customer-centric services is the new electrical/electronic (E/E) and software architecture called STLA Brain.

It is described as fully OTA capable, with 30 modules addressed versus the 10 today. The service-oriented architecture is integrated with the cloud and connects ECUs (electronic control units) within the vehicle with a central HPC (high performing computer) via a high-speed data bus. It decouples hardware and software generations, enabling software developers to create and update features and services quickly without waiting for new hardware. The OTA updates are said to dramatically reduce costs for customers and the company, simplify maintenance, and improve vehicle residual values.

Built on top of STLA Brain is STLA SmartCockpit, which is intended to better integrate with the digital lives of vehicle occupants to create a customizable “third living space.” Stellantis says studies show that customers spend an average of four years of their lives in their vehicles, and this is only increasing. STLA SmartCockpit is powered by the Mobile Drive joint venture between Stellantis and Hon Hai Technology Group (Foxconn) to deliver AI-based applications such as navigation, voice assistance, an e-commerce marketplace, and payment services.

STLA AutoDrive, developed in partnership with BMW, will offer Level 2, Level 2+ and Level 3 autonomous driving capabilities continuously upgraded through OTA updates. In October, Stellantis presented the results of its contribution to the L3Pilot, one of the most important European projects in automated driving involving 34 partners ranging from suppliers, to research institutes, road authorities, and OEMs.

 

Differentiating customer experience

Through software and on-demand features, Stellantis says it will provide customers with the ability to tailor their vehicles to individual needs and desires through OTA updates, increasing the differentiation among its 14 brands.

The company has delivered more than 6 million OTA updates to its vehicles and intends to offer at least quarterly releases by 2026. Its connected vehicles provide more than three trillion data points, with engineers using this information to shorten the vehicle continuous-improvement loop, improve customer satisfaction, and generate €1.1 billion in efficiencies by 2030.

To support the transformation, the company is creating a software and data academy to retrain more than 1000 of its engineers in multiple roles and develop its software community. It is also hiring top software and AI talent from technology and other industries globally.

By 2024, Stellantis targets having 4500 efficiency-driven software engineers, creating talent hubs around the globe. Those engineers will ensure the execution of the company’s software ambitions and operate within the ecosystem created by its partnerships.

 

Help from partners

Stellantis confirmed it is continuing its dedicated projects with Waymo. Chrysler Pacifica Hybrids equipped with the Waymo Driver have provided thousands of fully autonomous rides in Phoenix, AZ, and the partners have now expanded to local delivery services. Building on Stellantis’ light commercial vehicles and electrification, the partners are collaborating on workstreams focused on commercial development, with engineering teams getting access to new prototypes in 2022.

However, the bigger partner news at Stellantis Software Day 2021 was related to Foxconn. The two have signed a non-binding memorandum of understanding on a partnership to design a family of purpose-built semiconductors to support Stellantis and third-party customers. The announcement marks the second collaboration between Stellantis and Foxconn. In May, the companies announced the Mobile Drive joint venture aimed at developing smart cockpit solutions enabled by advanced consumer electronics, HMI interfaces, and services.

“Our software-defined transformation will be powered by great partners across industries and expertise,” said Tavares. “With Foxconn, we aim to create four new families of chips that will cover over 80% of our semiconductor needs, helping to significantly modernize our components, reduce complexity, and simplify the supply chain. This will also boost our ability to innovate faster and build products and services at a rapid pace.”

Foxconn will share its experience in manufacturing semiconductors and software—two key components in the production of electric vehicles, and together with Stellantis “tackle the long-term supply chain shortages, as we continue with the expansion into the electric vehicle market,” said Young Liu, Chairman & CEO of Foxconn Technology Group.

The collaboration will support Stellantis’ initiatives to reduce semiconductor complexity, design a new family of purpose-built semiconductors to support Stellantis vehicles, and provide capabilities and flexibility in an area of growing importance as vehicles become increasingly software-defined. The same semiconductors will be used within the Foxconn EV ecosystem as it continues to extend its capabilities in EV manufacturing.