Stellantis, the merger of Italian-American FCA and France’s PSA, is seen as a laggard when it comes to cutting-edge automotive technology. Especially when it comes to automation and electrification.
This is why it is not surprising that the recently formed automaker launched a powerful technology strategy focused on software development.
It announced it on Tuesday, December 7, and has a declared goal of reaching 2030 with annual revenue from automotive products and software-based subscriptions of about 20 billion euros.
He is not a minor player. In fact, in sales, it ranks just after the three giants: VW, Toyota, and Nissan-Renault.
Stellantis CEO Carlos Tavares said he expected to have 34 million connected vehicles by 2030, up from 12 million today.
In addition, in what will be the largest software development in its history, Stellantis said that starting in 2024 it will implement three new technology platforms powered by artificial intelligence (AI).
According to Stellantis software and marketing director Yves Bonnefont, “this is something that will place Stellantis among the leaders, if not the leader, in software and electronics.”
One of the platforms, called “STLA Brain“It will be the one that will provide software updates over the air (the OTA system), something that Tesla has been offering for a long time.
This software had already been announced by Stellantis at the beginning of 2021, when it said that it will invest 30 billion euros between 2022 and 2025 to carry out its electrification strategy.
On the other hand, an important fact: Stellantis will change the manufacturing architecture of its cars, since it will move its vehicles from its current platforms to other open software, taking advantage of partnerships with companies that are experts in these issues.
The idea is “not to do everything by ourselves”, they say in Stellantis.
Partners in Stellantis Marketing Strategy
There are clues to whom Stellantis will work most closely: The company has strategic alliances with companies like BMW, iPhone maker Foxconn, and Alphabet’s Waymo.
One of the most advanced alliances is that of a joint venture with Foxconn, which is expected to take place in late 2021 or early 2022. The goal is to supply connected car and car technologies to the entire industry.
Stellantis’ marketing strategy doesn’t end there. In parallel, it also signed a separate preliminary agreement with Foxconn to manufacture specially designed semiconductors for use by the automaker and other global customers.