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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.

‘Star Trek’ actor's family settles with Fiat Chrysler over his death

LOS ANGELES — The family of late "Star Trek" actor Anton Yelchin has settled a wrongful death lawsuit with Fiat Chrysler Automobiles NV over the rollaway crash of a Jeep Grand Cherokee that killed the up-and-coming actor almost two years ago. Terms of the settlement, which was filed in Los Angeles Superior Court on Tuesday, were not disclosed. The lawsuit filed by Yelchin's parents, celebrated Russian figure skaters Victor and Irina Yelchin, is believed to be the first wrongful death complaint filed over Fiat Chrysler's April 2016 recall of more than 1.1 million vehicles due to a rollaway risk. Yelchin, 27, best known for playing navigator Pavel Chekov in the "Star Trek" movie reboot, died in June 2016 when his 2015 Grand Cherokee rolled backward in the steep driveway of his Los Angeles home, pinning the actor against a brick wall and fence. Yelchin's final role was in the indie film "Thoroughbreds," which was released this month. In a statement, Fiat Chrysler said on Thursday the company is "pleased that we've reached an amicable resolution in this matter. ... We continue to extend our deepest sympathies to the Yelchin family for their tragic loss." Messages left with Yelchin family attorney Gary Dordick seeking comment were not immediately returned. The lawsuit also accused Fiat Chrysler of negligence, product liability and breach of warranty. Dordick said when he filed the lawsuit that Fiat Chrysler had mailed a recall letter to Yelchin that was received seven days after his death. Final recall notices were sent during that time, but interim notices had been mailed at least 17 days before Yelchin's accident, Fiat Chrysler said. At the time of Yelchin's death, the rollaway problem had been tied to at least 68 injuries, 266 crashes and 308 reports of property damage. Drivers complained they would exit vehicles with the engine running falsely believing the vehicle was in park. Fiat Chrysler furnished a software upgrade to the affected 2014-2015 model year Jeep Grand Cherokee sport utility vehicle as well as 2012-2014 Dodge Charger and Chrysler 300 sedans.Reporting by Eric KelseyRelated Video:

Ram and Jeep diesel emissions allegations spur class action lawsuits

This shouldn't come as a surprise. Last week, the EPA issued a notice of violation to FCA after it determined that Jeep and Ram installed eight undisclosed auxiliary emissions control devices on diesel vehicles. Since then US law firm Heninger Garrison Davis, LLC and Canadian firm Sotos LLP have launched class action suits on behalf of owners. These latest lawsuits are unrelated to a previous class action suit brought against FCA and Cummins over NOx emissions in 2007 to 2012 Ram models. The violation notice – and the subsequent lawsuits – covers 2014 to 2016 Jeep Grand Cherokee and Ram 1500 models equipped with the 3.0-liter turbodiesel V6, a total of about 104,000 vehicles in the US. The EPA says that while the emissions control devices aren't necessarily illegal, installing them without disclosing them to the EPA is, as they produce more emissions in real world use than in testing. Skirting certification in this way might be a violation of the Clean Air Act. FCA could see fines of up to $45,000 per vehicle, depending on the outcome of the EPA investigation. FCA denies that these are cheat devices, and has proposed software updates to bring the vehicles into compliance. As for the lawsuits, Heninger Garrison Davis says that "Fiat Chrysler marketed those vehicles as environmentally friendly with enhanced fuel efficiency, better performance, and lower emissions. Although the diesel vehicles were successfully marketed as 'clean,' their environmentally-friendly representations were deceptive to consumers." The suit seeks an undisclosed amount of compensation for owners of these vehicles. In Canada, Sotos LLP is seeking $250 million in damages on behalf of owners. This suit, filed in the Ontario Superior Court of Justice, also claims deception on the part of FCA, "resulting in losses and damage" to owners. These are similar claims to group actions against Volkswagen with regard to its diesel emissions cheating scandal. While VW is fixing or buying back many of the affected vehicles, the company is defending itself against some suits on behalf of owners, saying it expects " no decline in the residual values of the affected vehicles as a result of this issue." Don't be surprised if FCA mounts a similar defense.