Page 47 - EE Times Europe March 2022

EE|Times EUROPE 47

Stellantis Goes All In With Its Software Strategy

vehicles. Stellantis already has L1
and some L2 ADAS capabilities. ADAS
capabilities will be regularly upgraded
through OTA updates.

PARTNERS
In December, Stellantis and Foxconn
signed a non-binding memorandum of
understanding to create a partnership
that will design a family of semi-
conductors to support Stellantis and
third-party customers.
The four chip families will cover
80% of Stellantis’s semiconductor
needs, upgrading its current design
and production technology. The new
chips will also reduce complexity
and simplify its supply chain while
increasing hardware-platform flexibil-
ity and innovation speed.
The agreement extends the com-
2030 were unavailable. Incremental software factors for increasing software-related panies’ collaboration beyond the May 2021
revenue for 2030 is projected to reach about revenue. Convenience and cost savings launch of their Mobile Drive joint venture for
€20 billion. That works out to an average are a must. Stellantis claims more than a developing smart cockpits.
revenue per monetizable vehicle of €588, or 10-point increase in service retention. In addition to its partnership with
nearly 17× higher than the current total. Foxconn, Stellantis is working with BMW
Growth is expected to come from an TECH PLATFORMS and Waymo.
increased service portfolio, expanded OTA, Stellantis is developing three technology The company is working with BMW on
and other factors. platforms as part of its software strategy. ADAS functions, focusing on L2+ and L3 capa-
STLA Brain, the core tech platform, is a new bilities. Stellantis has worked with BMW since
BUSINESS SEGMENTS hardware and software architecture launching 2018 through Fiat Chrysler. L3 capabilities
Stellantis lists six business segments provid- in 2024 across Stellantis’s four battery- will be available in the near future.
ing software revenue (as shown in the table): electric platforms. L4 and L4+ functionality is being devel-
1. Software services and subscriptions, The Stellantis architecture, shown above, is oped with Waymo. Stellantis’s Chrysler brand
including traditional telematics services, a layered software and hardware framework has been working with Waymo for more than
of which multiple Stellantis brands that includes cloud-based and mobile device five years, and the Chrysler Pacifica Hybrid
are available. Many other connectivity connections. minivan has been and remains among
services are emerging and will become Software layers include applications on Waymo’s leading autonomous vehicles.
revenue sources. top and software platforms such as middle- Waymo has used the Pacifica for robotaxi
2. Software features on demand, used selec- ware, operating system, and “Safety RT OS.” trials in Phoenix and for goods delivery in
tively when needed. Examples include Stellantis provided no definition of its func- multiple locations.
audio, Wi-Fi, and streaming music. tion, but I assume the “RT” in Safety RT OS In 2022, Stellantis and Waymo will
Stellantis also lists Amazon’s Fire TV. A means “real time.” Is this a meta OS like the use Stellantis commercial vehicles for AV
growing list of revenue-sharing agree- emerging Apex.AI? development.
ments with leading entertainment and Stellantis also said that AI technology is
technology companies is also expected. part of its three tech platforms, but many BOTTOM LINE
3. Data as a service. Stellantis cites usage- more details are needed to understand this The Stellantis software strategy covers its
based insurance as an example, to be part of its software strategy. The company 14 brands. The overall plan looks sound,
deployed in 2022. Stellantis could use is using a service-oriented architecture in though much more information is needed for
Otonomo to create revenue from data its STLA Brain platform. Microservices were a detailed assessment. Revenue goals are
services. also mentioned. aggressive, including about €20 billion
4. Fleet services. Stellantis is the leader The second tech platform is the STLA (US$22.5 billion) in incremental annual
in European commercial fleets and is a SmartCockpit, providing infotainment capa- software-related revenue by 2030 from
strong player in the North America com- bilities from entertainment and navigation to 34 million vehicles.
mercial fleet sector. voice assistance, e-commerce, and payment Those figures translate to an average of
5. Vehicle pricing and resale value. This is services. The company is partnering with €588 (US$661) in software value per vehicle
an indirect impact. Most customers soon Foxconn on platform development. by 2030. ■
realize that updated features and func- Stellantis asserts that SmartCockpit should
tions such as OTA, ADAS, infotainment, transform a vehicle into a personalized living Egil Juliussen is the former director of
and connectivity boost resale value. space. The tech platform will interact with research for infotainment and ADAS at IHS
Hence, this is a factor in generating the vehicle based on a combination of sensors Automotive; an independent auto industry
software revenue. such as touch, voice, glance, and gesture. analyst; and EE Times’ “Egil’s Eye” columnist.
6. Conquests, service retention, and Finally, there is STLA Auto Drive, imple- This article was originally published on EE
cross-selling. These are other indirect mented in two phases: ADAS and autonomous Times and may be viewed at bit.ly/3G5TEad.

www.eetimes.eu | MARCH 2022