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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.

Jeep reportedly releasing Peugeot-based, Fiat-built baby 'ute in 2022

Jeep is now under the same Stellantis-branded roof as Peugeot, among other European carmakers. It will take full advantage of its new ownership to quickly develop and launch an entry-level car, according to a new report. Anonymous sources told industry trade journal Automotive News that the yet-unnamed model will be positioned directly below the Renegade. Rumors of a baby Jeep have popped up time and again in the past few years, and most claimed it would share its underpinnings with the Fiat Panda 4x4, an immensely capable city car that's a regular sight in the Alps. Those plans have allegedly changed; the soft-roader is now being designed around the Common Modular Platform (CMP) that underpins the Peugeot 208 and the Citroen C4, among other models. Using the CMP platform unlocks several benefits. It's much newer than the architecture found under the Panda, it's highly modular, and it was developed with gasoline, diesel, hybrid, and electric powertrains in mind. It sounds like the first Peugeot-based Jeep will come standard with front-wheel-drive, and it will offer an optional four-wheel-drive powertrain consisting of a longitudinally-mounted engine that will spin the front wheels and an electric motor that will put the rear wheels into motion. Odds are the motor will be capable of powering the crossover on its own, too. Most of the powertrain components will come from Peugeot. CMP wasn't designed for hardcore off-roading, so we're expecting more of a shrunken Renegade for the boulevard than a downsized Wrangler for the trail. Fiat will build Jeep's smallest model in Tychy, Poland, in a factory that currently churns out the Fiat 500 and the Lancia Ypsilon. Production is tentatively scheduled to start in 2022, and it's too early to tell if we'll see the crossover in America. Its pocket-sized dimensions might keep it away from our shores. It will certainly increase Jeep sales on the European market, where models that sell relatively well in the United States regularly post dismal sales figures. For example, the Grand Cherokee is a seen as a leviathan of a family hauler and the Wrangler is heavily taxed. Peugeot's CMP platform will allegedly underpin the production version of the Alfa Romeo Tonale concept, too. Pegged below the Stelvio, the crossover was originally developed on the Renegade's bones — some sources claim that's still the case, and Alfa Romeo hasn't shed light on the matter. Reportedly, Fiat will later get a CMP-based car.

Stellantis expects to hit emissions target without Tesla's help

Franco-Italian carmaker Stellantis expects to achieve its European carbon dioxide (CO2) emissions targets this year without environmental credits bought from Tesla, its CEO said in an interview published on Tuesday. Stellantis was formed through the merger of France's PSA and Italy's FCA, which spent about 2 billion euros ($2.40 billion) to buy European and U.S. CO2 credits from electric vehicle maker Tesla over the 2019-2021 period. "With the electrical technology that PSA brought to Stellantis, we will autonomously meet carbon dioxide emission regulations as early as this year," Stellantis boss Carlos Tavares said in the interview with French weekly Le Point. "Thus, we will not need to call on European CO2 credits and FCA will no longer have to pool with Tesla or anyone." California-based Tesla earns credits for exceeding emissions and fuel economy standards and sells them to other automakers that fall short. European regulations require all car manufacturers to reduce CO2 emissions for private vehicles to an average of 95 grams per kilometer this year. A Stellantis spokesman said the company is in discussions with Tesla about the financial implications of the decision to stop the pooling agreement. "As a result of the combination of Groupe PSA and FCA, Stellantis will be in a position to achieve CO2 targets in Europe for 2021 without open passenger car pooling arrangements with other automakers," he added. Tesla's sales of environmental credits to rival automakers helped it to announce slightly better than expected first-quarter revenue this week. The next tightening of European regulations will soon be the subject of proposals from the European Commission. The 2030 target could be lowered to less than 43 grams/km. Related Video: Government/Legal Green Alfa Romeo Chrysler Dodge Fiat Jeep Maserati RAM Tesla Citroen Peugeot Emissions Stellantis