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Stellantis wants to outfit cars with AI software to drive revenue

MILAN — Carmaker Stellantis announced a strategy Tuesday to embed AI-enabled software in 34 million vehicles across its 14 brands, hoping the tech upgrade will help it bring in 20 billion euros ($22.6 billion) in annual revenue by 2030. CEO Carlos Tavares heralded the move as part of a strategy that would transform the car company into a “sustainable mobility tech company,” with business growth coming from features and services tied to the internet. That includes using voice commands to activate navigation, make payments and order products online. The company is expanding existing partnerships with BMW on partially automated driving, iPhone manufacturer Foxconn on customized cockpits and Waymo to push their autonomous driving work into light commercial vehicle delivery fleets. StellantisÂ’ embrace of artificial intelligence and expansion of software-enabled vehicles is part of a broad transformation in the auto industry, with a race toward more fully electric and hybrid propulsion systems, more autonomous driving features and increased connectivity in automobiles. Ford and General Motors also are banking on dramatically increased revenue from similar online subscription services. But the automakers face immense competition for monthly consumer spending from movie and music streaming services, news outlets, Amazon Prime and others. Stellantis, which was formed from the combination of PSA Peugeot and FCA Fiat Chrysler, said the software would seamlessly integrate into customers' lives, with the capability of live updates providing upgraded services over time. New products will include the possibility to subscribe to automated driving features, purchase usage-based car insurance or even increase the power of the vehicle with a tune-up to add horsepower. As a baseline, Stellantis generates 400 million euros in revenue on software-generated services installed in 12 million vehicles. To meet the targets, Stellantis will expand its software engineering team of 1,000 to 4,500 in North America, Asia and Europe. More than 1,000 of the expanded team will be retrained in house. Stellantis also announced a new partnership with Foxconn to develop semiconductors to cover 80% of the companyÂ’s needs and simplify the supply chain. The first microchips from the partnership are targeted to be installed in vehicles in 2024.

Alfa Romeo realigns product onslaught (again)

After Sergio Marchionne announced an ambitious plan in May of 2014, Alfa Romeo has continued to struggle, pushing back launch dates and the debut of the models that would serve as the brand's new bedrock. And now it's happening again. A new investor relations document reveals that Alfa won't complete the debut of its new lineup until the middle of the next decade, and that FCA will be scaling back the brand's research and development, manufacturing, and product investments through 2018. The move is partially down to "uncertainties" in China, which gels with what we reported back in December. Alfa also needs extra time to "guarantee proper global distribution network execution," the document claims. As we've reported, the revised product cadence will still see the Giulia (pictured) and a new midsize utility vehicle hit dealers in 2016 and late 2016/early 2017, respectively. From there, Alfa is still aiming to flesh out its lineup with six more vehicles, including a fullsize sedan, two more utility vehicles, two "specialty" vehicles, and a hatchback. This new product strategy differs from the original Marchionne strategy in a few key ways. First, all of these vehicles were supposed to have been launched between May 2014 and sometime in 2018. Since it's 2016 and we can't even buy a Giulia yet, it's pretty clear that plan isn't going to happen. Instead, the six vehicles that will follow the Giulia and midsize CUV won't start arriving until 2017, with debuts continuing until at least 2020. The new product strategy also better reflects today's market. Gone are the two compact cars, and in their place is a single hatchback, arriving at the tail end of the brand's new product offensive. That might explain why the MiTo was given a stay of execution. It's no surprise to see a second utility vehicle in Alfa's plan, considering the way the segment has exploded in the past few years, while enthusiasts will likely welcome the idea of a second "specialty" vehicle. The brand's second midsize sedan has been pushed out, though, so the only Alfa four-door following the Giulia will be a fullsizer. As for Maserati, the investor relations PDF didn't list nearly as many specifics. As we've reported, FCA still expects the Levante CUV to be a growth leader for the brand by 2018. The performance brand's fortunes will also be bolstered by pairing its dealerships with those of Alfa Romeo. Related Video:

Coming Alfa Romeo large CUV to be an electric Italian Dodge Durango?

In the middle of 2022, Alfa Romeo boss Jean-Philippe Imparato told Reuters the Italian carmaker would develop a new battery-electric vehicle in the U.S. that would launch here in 2027. Created for markets that prize large SUVs, he said, "Our offer for a large size vehicle must fit international markets, American, Chinese, European." At the time, he cast doubt on whether the model would be as large as a BMW X5 (195 inches x 78.9 inches), and suggested it could combine crossover and sedan form factors. Imparato wouldn't be drawn on the production site for this new vehicle, but Reuters believed it probably won't be built in the U.S. Six months later, in January of last year, Imparato shared a few specs of the coming EV SUV with Automotive News Europe, by then called a "high-performance SUV" with motors putting out from 300 to 800 horsepower in the standard range and around 1,000 horsepower in a Quadrifoglio trim, and an 800-volt architecture would enable "recharging times of 18 minutes max." At this point, this SUV had also officially become a competitor to the X5, the BMW almost exactly 10 inches longer than the Stelvio (pictured), which is currently the largest product in the Alfa Romeo portfolio and the best-seller in the U.S. What had stayed constant was the potential of a tweener shape, Imparato having said that aerodynamic needs could lead to a shape between a sedan and a crossover.  With all that said, a post in a forum on of Spain's Cochespias (via Mopar Insiders) pinpoints the production site for the Alfa: The Detroit Assembly Complex - Jefferson plant in Detroit that builds the Jeep Grand Cherokee and Dodge Durango. The information comes from what appears to be a clip from a spreadsheet identifying current and future assembly sites and annual production figures. A line for the "E-CUV EV," this E-segment Alfa Romeo, refers to the assembly complex by its previous name, Jefferson North. The next-generation Grand Cherokee and Durango will sit on Stellantis' STLA Large platform, same as this flagship Alfa Romeo. The Grand Cherokee enters production at Detroit Assembly in 2026, the Durango in 2027. The spreadsheet shows production projections for the Alfa variant of 1,961 units for 2027, 10,715 units for 2028.  The next-gen Giulia and Stelvio, also on the STLA Large platform, are going to be built in the company's Cassino, Italy plant, so they can keep their geographical references.