Stellantis is a global automotive leader formed from the merger
of Fiat Chrysler and PSA Group, encompassing 14 brands such as
Jeep, Peugeot and RAM. The company focuses on electrification,
connected technologies and operational efficiency, aiming for a
sustainable future while addressing diverse consumer needs across
major markets.
The original equipment manufacturer is committed to achieving a
100% zero-emission lineup in Europe by 2030, focusing on
affordability and technological innovation. It is leveraging its
multi-energy platforms to accommodate diverse powertrains, which
include battery-electric vehicles (BEVs), hybrids and hydrogen fuel
cells.
In the realm of connected technologies, Stellantis emphasizes
seamless connectivity and user-friendly interfaces, catering to
both older and younger customer demographics. The development of
its Smart Car Platform illustrates this commitment, designed for
high adaptability and integration of various propulsion
systems.
Autonomous driving remains a priority, with Stellantis investing
in advanced driver-assistance systems to enhance safety and user
experience. The company recognizes the importance of brand trust
and customer expectations in this rapidly evolving landscape.
Additionally, Stellantis is expanding its electric vehicle
offerings, aiming to double its BEV models from 30 to 60 within
three years. This expansion includes competitive pricing
strategies, targeting entry-level markets with vehicles like the
Citroen C3, which offers affordability and quality.
To learn more, we spoke to Ned Curic, chief engineering and
technology officer of Stellantis.
Ned Curic was appointed chief technology officer and a member of
Stellantis’ top executive team Aug. 30, 2021. As of July 2023, his
scope of responsibility was expanded to include research and
development activities, and he was named chief engineering and
technology officer. From June 2017, He was vice president at Alexa
Automotive at Amazon spearheading Amazon’s efforts in the
automotive industry. He started his career in 1996 in the field of
engineering systems at Northrop Grumman, an American multinational
aerospace and defense technology company. After a short stint in
the financial industry, in 2000 he joined Microsoft where he held
various roles in consulting, product, security and advisory. He
entered the automotive sector in 2013, as group vice president and
chief technology officer at Toyota Motor North America and, in
2015, became co-founder and executive vice-president, technical
director and board member at Toyota Connected. He studied
informatics and computer science, and received a Master’s in
Business Administration from Pepperdine University in 2012.
Key takeaways:
- Generative AI is a double-edged sword: Its vast potential is
matched only by the challenge of defining and deploying it
effectively. As Stellantis embraces hybrid systems and democratizes
access, the key will be mastering decision-making and adaptability
to unlock the future of autonomous technology. - Relying solely on cloud processing for vehicle electronics is
impractical. Stellantis advocates for a hybrid approach that
combines cloud training with local execution to optimize
performance and reduce latency. - Stellantis is evaluating the viability of modular swappable
battery systems, investing in startups like Ample to explore this
technology. This could allow customers to purchase vehicles with
fewer batteries, enhancing convenience and sustainability. - The company is committed to achieving cost parity between BEVs
and mild hybrids by optimizing every vehicle component,
particularly through advancements in power electronics and battery
structure.
The following is an edited transcript of the
conversation.
S&P Global Mobility:What is
Stellantis’ comfort level with using generative AI to provide
information and entertainment for occupants, compared to using
predictive AI for enabling the vehicle to make real-time driving
decisions?
Ned Curic: As technology evolves, we’re
continuously learning about generative AI and exploring its vast
potential. New tools emerge daily, enhancing both spoken language
processing and multimedia applications. The challenge lies in
determining what works effectively and what doesn’t. Generative AI
encompasses a broad spectrum of meanings, leading to some confusion
in its definition.
However, advancements like large language models enable the
creation of hybrid systems that combine traditional supervised
approaches with innovative methods, resulting in sophisticated
autonomous systems. The race to deploy these technologies will
likely lead to a democratization of AI capabilities, as access to
computing power, techniques and data increases. Ultimately, the
focus remains on decision-making: how much autonomy we grant
systems, the quality of inputs provided, and the balance between
predictive and learned outcomes. The future is promising, with
significant opportunities for organizations willing to adapt
swiftly.
In what year do you anticipate that most processing for
vehicles will transition from being embedded within the car to
being conducted in the cloud?
It makes zero sense to move all compute in the cloud. While I’ve
made bold predictions in other areas, I firmly believe that relying
solely on cloud processing for electronics is impractical. The cost
of silicon is plummeting, allowing for substantial processing power
and storage to be integrated directly into vehicles. This enables
real-time decision-making at the edge, which is significantly
faster than cloud-based solutions.
Although cloud processing offers cost advantages at scale, it
introduces latency and bandwidth challenges that can hinder
performance. A hybrid approach is essential: training models in the
cloud while executing them locally. This balance allows us to
optimize resources, adapting the distribution of compute power
based on needs and capabilities. The notion of a “dumb” device
relying entirely on the cloud is unrealistic. From both engineering
and physics perspectives, a more integrated and intelligent system
design is the way forward.
Following the rise of software-defined vehicles, some
industry players, particularly in China, are now advocating for the
concept of the AI-defined car. Is Stellantis also embracing this
new concept, and what does it entail?
I must admit, I’m unclear on what the term “software-defined
car” truly means, and even more so with “AI-defined car.”
Technology industry often categorizes concepts in ways that can be
confusing, as these terms can signify different things to different
people, much like how “metaverse” has been used to describe a wide
range of virtual experiences.
While AI will undoubtedly play a significant role in various
aspects of vehicle design, manufacturing and customer interaction,
the specifics of an “AI-defined car” remain ambiguous to me. The
car itself is a complex machine with numerous components, and AI
will enhance many of these, incorporating traditional methods
alongside advanced generative AI and machine learning models.
Despite the uncertainty surrounding these definitions, I firmly
believe we are on the cusp of significant advancements in AI
deployment within the automotive industry over the next decade. The
potential for innovation in this ecosystem is immense. We are on
top of it, and I look forward to seeing how it unfolds.
Many innovations were presented in the Centoventi EV
Concept at the 2019 Geneva Motor Show, including modular swappable
batteries. Do you expect such a modular swappable battery system to
achieve mass-market application, and if so, when?
At the Geneva Auto Show, we introduced concepts that have now
been incorporated into the Fiat Grande Panda, launching today. Fiat
and its associated brands focus on fun, utility, usability and
customer-centric designs, ensuring that our vehicles offer
enjoyable and practical experiences. The innovations showcased will
not only appear in the Grand Panda, but also extend to other Fiat
models and brands like Citroën and Jeep.
Sustainability remains a priority for us, particularly in terms
of weight and materials. We’re currently evaluating the viability
of swappable battery systems. To this end, we’ve invested in Ample,
a startup specializing in battery swapping technology. In Madrid,
we’re conducting a large-scale prototype where vehicles can swap
batteries automatically in just five to 10 minutes.
This system could optimize capital by allowing customers to
purchase vehicles with fewer or no batteries, renting additional
modules based on their range needs. While the concept is promising
on paper, our challenge lies in scaling it for customer convenience
and developing a viable business model. Our investment in Ample
will help us explore and refine these ideas.
Regarding some recent fluctuations in battery prices, we
have seen an initial rise followed by a significant decline,
particularly with the democratization of LFP-based technologies and
a notable drop in lithium prices. Does this shift your perspective
or outlook on emerging battery technologies?
The weight issue remains a significant challenge. Currently,
many vehicles carry excessive weight, which impacts efficiency. If
we reach a point where we can achieve a 200-kilometer range with a
five-minute charge while reducing battery weight by half, that
could be a game changer.
In Europe, new tax regulations based on vehicle weight highlight
the growing importance of this issue. Swappable battery technology
could provide a solution, allowing customers to purchase a vehicle
with a single module and add more as needed.
However, even with advancements in battery chemistry, weight and
charging speed will continue to be critical factors. If we see
significant reductions in both weight and cost, the business model
could shift dramatically. Yet, until we have more clarity on these
developments, we must remain open to exploring various options, as
the landscape is likely to change unpredictably. While lithium
prices have dropped, there’s no guarantee they won’t rise
again.
Has anything in the past five years altered your belief
in the premise and functionality of the small electric vehicle
concept?
Not much has changed in our perspective. From Stellantis’
viewpoint, we feel confident in our smart car platform, which
remains highly competitive. While some competitors face challenges,
we’re excited to launch the Citroën e-C3 this year, along with
several other affordable models — like the C3 Aircross and the
Opel Frontera that exceed customer expectations and deliver a fun
driving experience.
I regularly test drive these vehicles, including the Fiat Grande
Panda, which shares the same platform. It’s an incredibly enjoyable
and practical car that meets customer demands at a price point that
allows us to remain profitable without the high costs typically
associated with electric vehicles.
We believe we’ve struck a solid balance with the smart car
platform and are committed to further enhancing charge times and
optimizing electronics to reduce costs. Our partnership with
Leapmotor also adds another strategic advantage. Overall, we’re
optimistic about competing effectively with Chinese manufacturers
in this market, offering a range of options that fit customer
budgets, from the Wagoneer S to our compact smart cars.
Stellantis has had success with plug-in hybrid
applications previously, with models like the Pacifica. Given the
recent wobble in sentiment toward battery-electric vehicles, do you
see market potential for a clean-sheet plug-in hybrid electric
vehicle platform?
We have a robust portfolio of hybrid propulsion systems, ranging
from mild hybrids to plug-in hybrids. We’re also exploring advanced
Generation 4 and 5 hybrid technologies to identify any gaps in our
offerings and ensure we’re prepared to integrate new innovations.
Our ability to own and manufacture these technologies positions us
well to adapt to customer demand across global markets, including
Europe and North America.
Whether it’s luck or smart decision-making, our choice to
develop multi-energy platforms has proven to be successful. A prime
example is the recently launched Peugeot 3008. It’s one of my
favorite vehicles in our lineup, offering a fantastic driving
experience. Customers can choose between electric or internal
combustion engine available in hybrid or plug-in hybrid options,
all while maintaining a consistent design.
The electric variant is the most expensive, while the hybrid is
the most affordable, yet all options remain equally enjoyable to
drive. This flexibility allows us to meet diverse customer needs
and preferences. Overall, we’re confident in our technology
portfolio and our ability to deliver a variety of convenient
choices to our customers.
How does Stellantis envision the configuration of the
propulsion system (including battery, motor and power electronics)
for an affordable, mass-market battery electric vehicle, and how do
you manage fluctuations in key battery commodity prices while
planning your future portfolio?
We have communicated our strategy regarding material supply, and
our purchasing organization has reiterated this. Their statements
reflect our commitment to securing the necessary materials for the
next decade. We have hedged across various regions, locations, and
suppliers to ensure a reliable supply chain.
Our approach encompasses everything from upstream sourcing to
downstream manufacturing, including the integration of these
materials into modules and packs. We feel confident in our supply
chain security. While it’s impossible to anticipate every
challenge, our traditional hedging strategy effectively mitigates
risks. Overall, we believe this approach positions us well for the
future, and there’s little more to add at this time.
How do you evaluate progress in achieving cost parity
between BEVs and internal combustion engine vehicles while managing
fluctuations in commodity prices? As a business, what strategies do
you employ to maintain a balanced perspective on whether BEVs are
becoming cost-competitive or even cheaper?
We have established clear targets for our hybrid and electric
vehicles, allowing us to track progress toward cost parity. By
manufacturing both vehicle types on the same production line, we
have a comprehensive understanding of material costs and
transformation processes. For instance, we aim for our electric
vehicles to achieve cost parity with mild hybrids by a specific
year, and we assess the necessary steps to reach that goal.
Our analysis focuses on every component of the vehicle,
particularly the battery. We explore various aspects, including
chemistry, packaging and power electronics. Recently, our team made
significant advancements in power electronics, specifically in our
IBIS (Intelligent Battery Integrated System) initiative, which has
the potential to reduce the weight of the power inverter module by
50% while maintaining performance. This innovative technology will
likely appear in our vehicles before the end of this decade.
Additionally, we are working on optimizing battery structures to
minimize weight and costs by removing unnecessary components. This
detailed optimization process requires careful analysis and
strategic capital investment, as simply investing large sums
without consideration can lead to higher amortization costs per
unit. We remain diligent in balancing these factors to ensure our
electric vehicles become cost-competitive while maintaining quality
and performance.
This interview was originally published on
AutoTechInsight.
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This article was published by S&P Global Mobility and not by S&P Global Ratings, which is a separately managed division of S&P Global.
