By Ed Frankl and Cristina Roca

 

Stellantis NV is targeting around 20 billion euros ($22.57 billion) in additional annual revenue by 2030 and has partnered with Foxconn Technology Group to make semiconductors, it said Tuesday ahead of the start of an event dedicated to its software strategy.

The car maker said it will target EUR4 billion in incremental annual revenue by 2026, generated by software-enabled products and subscriptions, rising to about EUR20 billion annually by the end of the decade.

It said it would invest more than EUR30 billion through 2025 in a software and electrification transformation, aiming to have a majority of its new cars "over-the-air updatable" by 2024.

Stellantis also announced a new partnership with Foxconn Technology Group. Together, they will design and make semiconductors and also sell them to third parties.

"With Foxconn, we aim to create four new families of chips that will cover over 80% of our semiconductor needs, helping to significantly modernize our components, reduce complexity, and simplify the supply chain," Stellantis said.

The company expects to be able to start using the chips in its cars by 2024.

Stellantis has also expanded its partnership with Alphabet Inc.-owned self-driving technology company Waymo to include local delivery services, it said.

It has also partnered with German car maker BMW AG to develop a software platform offering autonomous driving capabilities.

The technology is part of three new software platforms that Stellantis will deploy at scale between 2024 and 2026.

The Amsterdam-based company, the result of a merger of Fiat Chrysler and France's PSA Group, said it expects to have 34 million software-connected cars globally by 2030 from 12 million currently.

Stellantis's software strategy will go hand in hand with its electrification plans, it said.

The company has said it is targeting more than 70% of its vehicle sales in Europe and more than 40% of vehicle sales in the U.S. to be low-emission vehicles by 2030.

 

Write to Ed Frankl at edward.frankl@dowjones.com and Cristina Roca at cristina.roca@wsj.com

 

(END) Dow Jones Newswires

December 07, 2021 05:10 ET (10:10 GMT)

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