Stellantis NV STLA recently announced collaboration plans with Amazon AMZN to transform the in-vehicle experience for its millions of customers. This will be possible by transitioning to a sustainable and predominantly software-defined future for the larger part of the auto industry.
Both companies will join forces to develop the next-in-line cloud-enabled infrastructure for vehicle platforms and deliver Stellantis’ key software technology, the STLA SmartCockpit, which is supposed to be introduced to a large number of its vehicles, globally, beginning 2024.
The software platform will use a wide bucket of Amazon products and solutions, tailor-made for vehicles while STLA will have the flexibility to create custom, brand- and vehicle-specific capabilities. The software will function through an app store with an intelligent, adaptive user interface design that presents timely, relevant information and features, suitable for each occupant’s individual needs and preferences.
It promises to create a seamless in-vehicle experience through AI-enhanced applications for entertainment, Alexa-enabled voice assistance, navigation, vehicle maintenance, ecommerce marketplaces and payment services. These will let customers set the in-cabin temperature before getting into their vehicle, schedule service or order accessories.
STLA SmartCockpit will also have avant-garde functionalities like adapting to customers’ behaviors and interests right from the start of a journey at home, on the road or off. Integration with Amazon’s range of smart home and security services will allow customers to enjoy the facility of monitoring and managing their homes while on the go.
Stellantis laid out an optimistic plan to transition its current vehicle data pipeline across its brands and geographies into a cloud-based data network, using AWS’ advanced capabilities. This will enable company engineers to use the tools and interface that best suit each project. STLA also aims to market new digital products that leverage AWS machine learning to deliver a more accurate predictive maintenance.
In this line, both companies are working on a development environment called the “Virtual Engineering Workbench,” which provides automated workflows to manage software development and testing, high-performance simulations, machine learning model training, and data collection and analysis.
In another recent development, Stellantis chose AWS to launch a new global learning curriculum, called the Agile-Auto Software and Data Academy, for STLA’s upcoming Software Academy, aimed at upskilling and reskilling the existing and new employees.
Stellantis will also train more than 5,000 developers and engineers by 2024 in AWS-related cloud technologies to expedite its transformation into a data-driven enterprise. The launch of a global network of AWS-powered Innovation Hubs is also underway wherein experts from both companies will innovate on solutions using AWS cloud services.
As part of another separate agreement with Stellantis, Amazon will be the first commercial customer of the new Ram ProMaster Battery Electric Vehicle (BEV) of the former, to be launched in 2023.
The companies together designed the vehicle with the unique last mile delivery features and Amazon will deploy the vehicles to routes across the United States. Moreover, in support of The Climate Pledge and its commitment to be carbon neutral by 2040, Amazon is transforming STLA’s last-mile operations with new sustainable solutions.
The partnership combines Amazon’s leadership and innovation in digital experiences, cloud computing, AI and machine learning with Stellantis’ engineering expertise and a portfolio of 14 iconic vehicle brands. Amazon has taken the onus of transforming the auto player into a leader in software-driven mobility. STLA is driven by a focus to make its vehicles the most captivating for the customers.
Shares of Stellantis have climbed 12% over a year, outperforming the industry’s 2.5% rise.
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Zacks Rank & Other Key Picks
Currently, Stellantis carries a Zacks Rank #2 (Buy). Other top-ranked peers in the same space include Goodyear GT, flaunting a Zacks Rank #1 (Strong Buy), and Fox Factory Holdings FOXF carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Goodyear has an expected earnings growth rate of 197% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 77% upward over the past 60 days.
Goodyear’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. GT pulled off a trailing four-quarter earnings surprise of roughly 228.5%, on averageThe stock has gained 95.5% over a year.
Fox Factory has an expected earnings growth rate of 48.2% for the current year. The Zacks Consensus Estimate for the current-year earnings has been revised around 2% upward over the past 60 days.
Fox Factory’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. FOXF delivered a trailing four-quarter earnings surprise of roughly 16%, on average. Its shares have rallied 38.3% over a year.
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