Yahoo Finance Stellantis (STLA) Acquires CloudMade's AI Technologies & IP
Stellantis N.V. STLA announced the acquisition of artificial intelligence (“AI”) and machine learning technology, intellectual property (“IP”) rights and patents of CloudMade. This U.K.-based company designs, develops and deploys software solutions to original equipment manufacturers around the world.
The transaction will support STLA SmartCockpit’s mid-term development and its software strategy outlined in Dare Forward 2030.
By 2030, Stellantis aims to generate $22 billion in annual revenues through software and subscriptions.
CloudMade created an AI-powered framework that is the industry-leading cloud and software development kit for collecting and analyzing automotive data sets that have been transforming the in-car and mobility user experience over the past decade.
Per the deal, 44 of CloudMade's AI engineers and software developers will join Stellantis.
The framework helps maximize data value using personalized learning, fleet learning and cohort learning. The technology will help STLA develop intelligent mobility products and improve the overall customer experience with personalized features to enhance safety.
The technology includes predictive maintenance and diagnostics, personalized in-car experiences, Stellantis-specific voice assistant, optimized mobile experiences and remote commands, advanced navigation and mapping and targeted features for fleet management.
The acquisition will also empower Stellantis to develop end-to-end and wholly-owned navigation features, improve data privacy and introduce development kits for making custom models for its software developers.
Per Reuters, STLA will slash 600 jobs at the Mulhouse plant in France. The cut will not impact workers with permanent labor. The geopolitical situation and the company’s current price race against competitors are cited as reasons for the job cut.
Zacks Rank & Key Picks
STLA currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Volvo VLVLY, Mercedes-Benz Group AG MBGAF and BYD Company Limited BYDDY, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings suggests year-over-year growth of 4.2% and 73.1%, respectively. The EPS estimates for 2023 and 2024 have improved by 4 cents and 3 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for MBGAF’s 2023 sales implies year-over-year growth of 5.8%. The EPS estimates for 2023 and 2024 have moved up by a penny and 30 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for BYDDY’s 2023 sales and earnings suggests year-over-year growth of 35.7% and 72.9%, respectively. The EPS estimate for 2023 has improved by a penny in the past 30 days.
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