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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.

Fiat-based baby Jeep spotted testing in US and Europe

Details remain scarce, but our spy photographers have managed to capture the upcoming Jeep B-segment crossover for the first time, testing in both the Alps and in the US. Shown here as a cobbled-together Fiat 500L mule, the new Jeep model is expected to arrive for the 2015 model year and act as a replacement for the current Compass and Patriot models.
According to our shooter, the new "baby Jeep" will share a platform with the Fiat 500X, and both models will be built on the same assembly line in Turin, Italy. We can't tell much from these images, but the added length apparent on this 500L mule would seem to dispel the recent speculation that the new entry-level Jeep model would be sized closer to the Ford Fiesta - since the 500L is already considerably larger than the Fiesta. Powertrain options will likely mirror other Fiat/Chrysler collaborative vehicles like the Dodge Dart, but this Jeep will also try to live up to its off-road roots with an optional all-wheel-drive system.

Jeep still working to improve Cherokee's 9-speed auto

Fiat Chrysler is hoping an upcoming software update will stem the tide of consumer complaints surrounding its nine-speed automatic transmission. Owners of the 2014 Jeep Cherokee have reported a number of problems on the National Highway Traffic Safety Administration's SaferCar.gov website, since the new model and its troubled gearbox arrived way back in October 2013. The software update is "intended to keep the vehicle performing as intended, and to prevent durability issues from occurring in the future," an FCA spokesperson told Automotive News, and will be available to owners of both the 2014 to 2015 Jeep Cherokee and the 2015 Chrysler 200, which also uses the 9AT. While FCA will be notifying consumers of the update, owners can also request the software reflash if they happen into their dealer before then. Despite the widely documented problems with the transmission, the only complaints on NHTSA's website relate to the 2014 Cherokee – neither the 2015 Jeep nor the 200 have received any complaints. That bodes well as FCA prepares to begin deliveries of the 2015 Jeep Renegade and launch the Fiat 500X, both of which pair the 9AT with the 2.4-liter Tigershark four-cylinder. "We have had to do an inordinate amount of intervention on that transmission, surely beyond what any of us had forecast," FCA CEO Sergio Marchionne told Automotive News. "There are things that we have done – that we continue to do. Our proactive customer care intervention has actually increased in intensity on these vehicles in 2014, especially in the second half." What's fascinating about the 9AT's problems are that they haven't been the fault of manufacturer ZF, but have related to software that wasn't "mature" and had "teething problems," Marchionne has said previously, AN reports. With the lack of criticism for the 9AT in 2015 models and this pending software update, though, here's hoping that FCA has finally figured out its fuel-sipping gearbox. Related Video: