Stellantis Targets EUR20 Billion Extra Revenue by 2030 From Software, EV Push; Enters Into Partnership to Make Chips -- Update
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
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
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
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 email@example.com and Cristina
Roca at firstname.lastname@example.org
(END) Dow Jones Newswires
December 07, 2021 05:10 ET (10:10 GMT)
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