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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.

Why a Renault-FCA merger could be good news for Nissan, Mitsubishi

TOKYO — Nissan's advanced technologies including platforms and electric powertrains could give it leverage in a merger involving Renault and Fiat Chrysler, thanks to a royalty system it has with the former, two people with knowledge of the matter said. A merged Renault-Fiat Chrysler could face an extra hurdle each time it uses technology developed by Nissan or Mitsubishi Motors, while the two Japanese automakers stand to gain a client in Fiat Chrysler (FCA), one of the people said. Both sources declined to be identified because of the sensitivity of the matter. Nissan's technology, particularly in electrification and emissions reduction, could give it some sway in the $35 billion potential tie-up between Renault and FCA, even as its stake in the newly formed company would be diluted. Currently Renault SA pays less for technology developed by Nissan than the Japanese automaker pays for French technology, a third person said. This has long been a sticking point for Nissan, and an area where Nissan could seek more favorable terms. "Whenever Nissan transfers platform, powertrain or other technology to Renault, there is a margin or royalty which Renault has to pay for use of that tech," one of the people said. "In that sense, FCA, if everything went well, would become another 'client' of ours and that's good. More business for us." A Nissan spokesman declined to comment on its royalty system. The potential Renault-FCA deal has complicated the Japanese automaker's already uneasy alliance with Renault. A further deal with Fiat Chrysler looks likely at least in the near term to weaken Nissan's influence in the 20-year-old partnership. Renault owns a 43.4% stake in Nissan and is its top shareholder. Nissan holds a 15% non-voting stake in Renault and would see that diluted to 7.5% after the FCA deal, albeit with voting rights. The imbalance between the two has long rankled Nissan, which is by far the larger company. Alliance imbalance Renault had previously angled for a merger with Nissan but has been rebuffed by CEO Hiroto Saikawa. Securing benefits from the merger deal will be important for Saikawa, who is grappling with poor financial performance while he struggles to right the company after the ouster of former chairman Carlos Ghosn last year.

All 2018 Fiat 500s will get turbocharged engines

For 2018, every basic Fiat 500 is getting a healthy horsepower increase thanks to a standard turbocharged 1.4-liter four-cylinder making 135 horsepower and 150 pound-feet of torque. That's a big increase over the current model's naturally aspirated 1.4-liter engine that makes just 101 horsepower and 97 pound-feet of torque. The newly available turbo engine can also be fitted to either a 5-speed manual or a 6-speed automatic. Fiat 500 fans may also find the new turbo engine's specifications familiar, and that's because they're identical to the old Fiat 500 Turbo that was introduced a few years ago. That car was introduced as a sort of happy medium between the standard 500 and the Abarth. The Turbo disappeared for a little while, but will be resurrected as 2018's entry model. Fiat also says the new turbocharged 500 Pop and Lounge (the basic models) get sportier suspension and brakes than the old one, again similar to the discontinued 500 Turbo. The exterior also becomes more aggressive on both trim levels looking a bit like a toned-down Abarth. And if you've picked up on the theme here, the exterior looks much like the old 500 Turbo's. Mind you, we're not complaining about Fiat bringing back the Turbo as the entry-level 500. It brings the car closer in parity to the base Mini Cooper, effectively matching it for power, and coming up just 10 pound-feet of torque short in the twist department. And while we didn't find the old 500 Turbo to be nearly as fun as the Abarth, the extra power did make for a better basic Fiat – and so should the 2018s. Related Video: Featured Gallery 2018 Fiat 500: Chicago 2018 View 12 Photos Related Gallery 2018 Fiat 500 View 14 Photos Image Credit: Live photos copyright 2018 Drew Phillips / Autoblog.com Chicago Auto Show Fiat Convertible Hatchback Economy Cars Performance turbo 2018 Chicago Auto Show fiat 500 turbo