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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.

Trying the new Compass and other Jeeps on for size

If any brand has license to sell several like-sized SUVs, it's Jeep, which invented the concept in the first place. Yet, with the Cherokee, Renegade, and the redesigned 2017 Jeep Compass revealed at the LA Auto Show, just how like-sized is this trio of compact SUVs? Well, as it turns out, that answer is more complicated than just looking at various spreadsheets of specifications. After the cover was pulled off the new Compass, I managed to explore each back-to-back-to-back to see how their back seats and cargo areas compare. Perhaps obviously, the Renegade is the smallest of the trio no matter how you look it. Well, it actually has the most headroom, but rear legroom is cramped (a 6-footer can't sit behind another 6-footer) and it's quite obvious the cargo area is about nine cubic feet smaller with the rear seats raised. However, the Cherokee and Compass are surprisingly similar both on paper and in person – and even more surprisingly, the newer, smaller-on-the-outside Compass is actually a bit more spacious despite being nine inches shorter in overall length. View 14 Photos When seated in back, my knees were just touching the driver seat when it was motored most of the way back to accommodate my 6-foot-3 frame. However, the Cherokee's slightly chunkier seatback meant the Compass actually had a bit more rear legroom. I then set the passenger seat to a more average distance and again, the Compass had a slight advantage. The Cherokee did have a bit more under-thigh support, however, which indicates the seat is mounted a bit higher. But that creates a problem, as headroom is more significantly affected when the panoramic sunroof is specified. In the Cherokee, my head was into the sunroof cavity and resting against its rigid surround. In the Compass, there was just enough clearance. It should be a difference, both in terms of headroom and perceived roominess that those of average height should notice. As for their cargo areas, the Compass' is larger and more useable. With the rear seats raised, it has 27.2 cubic feet versus the Cherokee's 24.6. You can scoot its sliding seat forward to nearly equal the Compass, but of course doing so reduces its rear legroom. The main reason is width. The Cherokee is noticeably narrow and it gets worse when equipped with the optional subwoofer. In terms of maximum cargo volume with the rear seats lowered, the Compass has 59.8 cubic feet to the Cherokee's 54.9.

These are the cars with the best and worst depreciation after 5 years

The average new vehicle sold in America loses nearly half of its initial value after five years of ownership. No surprise there; we all expect that shiny new car to start depreciating as soon as we drive it off the lot. But some vehicles lose value a lot faster than others. According to data provided by iSeeCars.com, trucks and truck-based sport utility vehicles generally hold their value better than other vehicle types, with the Jeep Wrangler — in both four-door Unlimited and standard two-door styles — and Toyota Tacoma sitting at the head of the pack. The Jeep Wrangler Unlimited's average five-year depreciation of 30.9% equals a loss in value of $12,168. That makes Jeep's four-door off-roader the best overall pick for buyers looking to minimize depreciation. The Toyota Tacoma's 32.4% loss in initial value means it loses just $10,496. The smaller dollar amount — the least amount of money lost after five years — indicates that Tacoma buyers pay less than Wrangler Unlimited buyers, on average, when they initially buy the vehicle. The standard two-door Jeep Wrangler is third on the list, depreciating 32.8% after five years and losing $10,824. Click here for a full list of the top 10 vehicles with the least depreciation over five years. On the other side of the depreciation coin, luxury sedans tend to plummet in value at a much faster rate than other vehicle types. The BMW 7 Series leads the losers with a 72.6% drop in value after five years, which equals an alarming $73,686. BMW's slightly smaller 5 Series is next, depreciating 70.1%, or $47,038, over the same period. Number three on the biggest losers list is the Nissan Leaf, the only electric vehicle to appear in the bottom 10. The electric hatchback matches the 5 Series with a 70.1% drop in value, but since it's a much cheaper vehicle, that percentage equals a much smaller $23,470 loss. Click here for a full list of the top 10 vehicles with the most depreciation over five years.