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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.

Alfa Romeo Tonale drops the non-hybrid 2.0-liter for the U.S.

Until last week, we were expecting the Alfa Romeo Tonale to be sold with two powertrains here. When the compact crossover greeted the world for the first time in February, Alfa Romeo told us our market could expect a 2.0-liter turbocharged four-cylinder as the base option, putting out 256 horsepower through a nine-speed automatic to all four wheels. The premium choice would be a plug-in hybrid powertrain that paired a 177-hp, 1.3-liter four-cylinder turning the front axle with a 121-hp electric motor working the rear axle for a combined 275 hp. The PHEV would also be capable of 30 miles of pure-electric motoring in the U.S. Alfa Romeo boss Jean-Philippe Imparato told Automotive News Europe during the media drive that the non-hybrid 2.0-liter is no longer an option for the U.S. because Alfa Romeo needs to go especially aggressive on reducing emissions here. In Europe, the Tonale can be ordered with both powertrains as well as a diesel. Here, the California Air Resources Board (CARB) recently proposed a new set of regulations that lay out tougher benchmarks for an automaker's CO2 emissions. If the regulations pass, 35% of an automaker's sales in the state will need to be zero-emissions vehicles (ZEV) by 2026 and 100% by 2035. California, by itself, is on the cusp of passing Germany as the world's fourth-largest economy, according to Bloomberg. Furthermore, 13 states and the District of Columbia adhere to CARB emissions rules, nine of those follow California's ZEV program, and three more states will join the ZEV regulations over the next three years. Alfa Romeo sold just over 18,000 cars here last year, and it needs plenty of Tonales to offset all those Stelvios. Across the Atlantic, the Euro 7 emissions giving carmakers public fits are slated to come into force on July 1, 2025. For these reasons as well as Alfa Romeo's commitment to going all-electric this decade, Imperato told ANE the PHEV is "an existential need" in the lineup. An Alfa Romeo spokesperson in the U.S. elaborated to Car and Driver, "As a premium brand, the PHEV better aligns with what our customers want in this segment as it provides an elevated experience, greater performance, and more than 30 miles of electric range." The subtext here is that the Tonale's corporate twin, the Dodge Hornet, will offer both powertrains when it goes on sale next year.

Dodge Hornet supposedly snapped inside Alfa Romeo Tonale factory

It appears that someone in Stellantis' Pomigliano d’Arco Assembly Plant in Italy couldn't keep their cellphone to themselves. Video uploaded to the Alfa Romeo Club Italia Facebook page, then quickly removed, purports to show Dodge's brand-engineered version of the Alfa Romeo Tonale in the same factory where the Alfa will be built. The Dodge is expected to be called the Hornet, and there are a few differences between it and and Alfa Romeo, which is understandable. But if the screenshots on Twitter are accurate, then the Dodge looks a lot closer to the Alfa Romeo than perhaps anyone expected. The front fascia and hood fall in line with Dodge's design language. The Alfa grille is replaced by a narrow, stepped upper grille, and the hood is one of the vented units similar to those available for Dodge's R/T performance trims. And as Mopar Insiders noticed, the silhouette of this car's front end matches a vehicle silhouette Dodge showed during Stellantis' 2021 EV Day.   Inside, the Italian brand's crest in the steering wheel center cap is replaced by Dodge's twin slashes, and the steering wheel has been stripped of the large, curved paddle shifters the Tonale showed on its debut. There's still a start/stop button on the steering wheel, but where the Tonale has a driving mode dial on its dash, this supposed Hornet has another start/stop button. Dodge's push-to-start buttons are usually on the instrument panel, so our guess is that the wheel is a holdover for testing. On the center tunnel, the parking alert buttons and Italian Tricolore flag on the Alfa Romeo are replaced by three different buttons.   We've known Dodge has two electrified vehicles on the way, and the Hornet name has been low-key buzzing for two years. Fiat Chrysler applied to trademark the name in the U.S. in March 2020; at the time, it was thought a vehicle with that name could replace the Journey. In 2021, a July rumor out of Italy was the first whisper of the Hornet name being attached to the Alfa Romeo Tonale. In August, when Stellantis CEO Carlos Tavares said Dodge would get a PHEV in 2024, watchers pegged that model as the Hornet. That hybrid powertrain would show a year after the vehicle's launch, the Hornet anticipated as a 2023 model with the Tonale's turbocharged 2.0-liter four-cylinder. That engine could get the same 256 horsepower and 295 pound-feet of torque as the Tonale, or be boosted to satisfy Dodge's performance credentials.