Stellantis today unveiled its long-term strategic plan and said that it expects to make €20 billion ($22.2 billion USD at current exchange rates) with a 40 percent gross margin across its software business. To do that, it anticipates that it will have to have more than 34 million cars on the road that can be monetized through digital services.
Carlos Tavares, Stellantis’ CEO, said during a speech today that the plan is to separate software cycles from vehicle cycles. That means that, like other automakers, it will ramp up the speed at which it delivers over-the-air updates to its vehicles to more than 400 million per year, in total.
“Our strategy is to disconnect the hardware and the software cycles to create a product that can evolve regularly, following customer needs,” Tavares said. “We will have three technology platforms deployed at scale STLA SmartCockpit, STLA AutoDrive, and STLA Brain across the four EV-focused vehicle platforms.”
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These platforms will allow Stellantis to sell features on-demand, which are features that customers can subscribe to. These services will relate to vehicle accessories, maintenance, warranty, insurance, over-the-air updates, and more. Customers will also be able to book mobility services, like daily car rentals, car sharing, and electric services, said Tavares.
“We’re going to pilot the digital marketplace first on a smaller scale and progressively ramp-up to all regions, all brands, and all services by 2027, targeting full expansion in 2030. This will be a new channel for the entire business and will contribute €4 billion ($4.4 billion USD) in services revenue.”
The platforms will also facilitate online sales, which Stellantis aims to double each year until 2024. By 2030, it expects a third of its sales to come from online customers. Its online marketplace will also use AI to recommend products and subscriptions based on the customer. The company further hopes to sell the data it collects from its customers across these digital platforms to third-party customers, which it anticipates will help it generate up to €9 billion ($10 billion USD) in revenue.
The STLA platforms will be supported by its partnerships with outside companies that will allow it to deliver not only the research but the parts and chips required to make its vision a reality.
“Our cooperations with Amazon and Foxconn on STLA SmartCockpit will make our vehicles the most wanted, most captivating place to be, using AI and advanced cloud solutions,” said Tavares. “We will also master the highest levels of autonomous driving technology and ensure our customers are confident the tech is safe and reliable.”
By 2024, STLA AutoDrive will deliver “hands-free, eyes off” Level 3 driving to Stellantis vehicles with the help of BMW. It is partnered with Waymo, meanwhile, to make a delivery-as-a-service business with autonomous vehicles. The first prototype vehicles in that partnership are expected this year and they will be commercially available in the second half of the decade.