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Stellantis plans to generate $22.5 billion in new software revenue by 2030

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Automaker StellantisThe company plans to earn about $22.5 billion (or 20 billion euro) annually in additional revenue through software subscriptions and services by 2030.

Driving the growth will be an increase in the automaker’s so-called connected vehicles — stocked with GPS, infotainment systems, driver assistance and other technologies — from 12 million today to 34 million by then, according to Stellantis.

Stellantis is currently the fourth largest automaker in the world. It is now aiming to increase its services revenue, to diversify its earnings and market potential.

Other automakers – from BMW to General MotorsAnd Ford Motor – have announced similar measures following the recent growth and popularity of Tesla. The EV automaker has long been a leader in technology and services, providing remote updates (or over-the air) for vehicles that are years ahead of other manufacturers.

Stellantis indicated that “most” new vehicles will be capable of OTA upgrades by 2024.

Automakers see vehicles that can be updated over the air as a key to generating recurring revenue via new technologies and subscriptions.

Software services were part of an earlier announced plan by the automaker to invest 30 billion euroIn advanced technologies and vehicle electrification.

Stellantis stated that it plans to employ more software engineers to develop new technology in-house and through partnerships with other businesses.

Also Tuesday’s announcement by the company was that it signed a nonbinding memorandum o’ understanding with iPhone maker FoxconnTo form a partnership to develop a new family of semiconductors for Stellantis customers and other third-party customers.

Stellantis is also a partner with BMW Alphabet’sWaymo is developing driver-assist technology to counter Tesla’s Autopilot system and other systems.

Stellantis is the combined automaker of Fiat Chrysler, France-based Groupe PSA and Fiat Chrysler. There are 14 distinct auto brands, including Alfa Romeo Chrysler, Fiat Chrysler, Fiat Jeep, and Peugeot.

Before Tuesday’s “Software Day” with Stellantis CEO Carlos Tavares (and other executives), the company revealed its plans.

Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.