Stellantis launches new business unit to turn vehicle data into cash

All that vehicle data will be turned into a new business unit by Stellantis.

The business unit called Mobilisights is a key piece of the global automaker's plan to generate 20 billion euro in annual revenue from software related services by the end of the decade.

The goal is to grow the company's data-as-a-service business by developing and licensing products. Mobilisights products will be sold to private enterprises, public sector utilities, education and research institutions.

The idea is to turn the data generated by its millions of connected vehicles into applications and services for its customers. The data can be used to provide personalized usage-based insurance, detect road hazard and provide information on traffic.

In the last few years, other automotive companies have launched similar efforts. General GM started an insurance service in 2020 that used the huge amount of data captured through its OnStar connected car service.

The Mobilisights unit is the latest move by the company to make more money. The basic framework of a plan to generate billions in annual revenue from software in its vehicles was laid out in December of last year.

More than $32 billion will be invested into software and electrification by the end of the decade. There will be 4,500 software engineers by the end of the decade.

A goal is to have 34 million connected cars on the road by the year 2030. In order to reach its target, the company is leaning on partnerships. The company has more than a dozen million connected cars. Monetizable is the vehicle's first five years.

Mobilisights has exclusive rights to license vehicle and related data from all of the Stellantis brands. Control of the volume and density of data will make it less dependent on other data suppliers.

Privacy questions are raised when data is collected and turned into products. The company says it and its partners will operate within a very strict data governance and privacy policy, and only sharing personal data of customers with their consent and only for the specific services of their choosing.

Customers can opt out of information being collected even if they have previously consented.

Sanjiv Ghate is the CEO of Mobilisights. We are here to create a better world because of the trust we have in our custodianship of data.