How are AI and SDVs Reshaping the Supply Chain? | with Derek De Bono of Valeo
In this episode of The Garage podcast recorded live at CES 2026, host John Heinlein interviews Derek De Bono, Vice President of Software Defined Vehicles at Valeo, a major tier one automotive supplier. The conversation explores how software defined vehicles (SDVs) are transforming the automotive industry, moving beyond simply adding more software to creating a holistic system approach that decouples hardware and software. Derek discusses Valeo's 90-year evolution from mechanical systems to leading innovation in electrification, lighting, and autonomous driving systems. The discussion covers how SDVs enable vehicles to evolve with their owners through over-the-air updates, feature-on-demand capabilities, and continuous improvements through AI and machine learning. They explore the changing relationship between automakers and suppliers, moving from hierarchical structures to partnership ecosystems. Derek shares insights on the future of autonomous driving, predicting level 3 autonomy before 2030, and discusses how software updates are becoming more frequent, with some manufacturers pushing hundreds of updates per year. The conversation touches on business model implications, including whether new features should be revenue-generating or loyalty-building, and how SDVs can improve vehicle resale value and reduce costs through simplified wiring harnesses and fewer controllers.
Chapters:
0:00 Introduction to Software Defined Vehicles
0:44 Introduction to Derek De Bono
3:48 Overview of Valeo
5:01 Transition to Software Defined Vehicles
7:44 The Role of AI in SDVs
9:03 Collaboration in the Automotive Ecosystem
13:18 Opportunities for OEMs and Consumers
16:11 Revenue Models for Software Updates
20:42 Future Trends in Autonomous Driving
24:52 Conclusion and Closing Remarks
Chapters:
0:00 Introduction to Software Defined Vehicles
0:44 Introduction to Derek De Bono
3:48 Overview of Valeo
5:01 Transition to Software Defined Vehicles
7:44 The Role of AI in SDVs
9:03 Collaboration in the Automotive Ecosystem
13:18 Opportunities for OEMs and Consumers
16:11 Revenue Models for Software Updates
20:42 Future Trends in Autonomous Driving
24:52 Conclusion and Closing Remarks
Creators and Guests
Host
John Heinlein, Ph.D.
An experienced technology and marketing leader, John brings his background from startups and established companies to Sonatus. He worked for 14 years at Arm, most recently leading Automotive Partnerships for North America where he engaged OEMs, Tier-1s, and others to deploy Arm-based solutions into automotive applications, including autonomous vehicles. His team was integral to launching the SOAFEE industry initiative for software-defined vehicles of which Sonatus is a member. Earlier he served as VP and Chief of Staff to the CEO and led a group responsible for competitive strategy. For three years, he was VP of Corporate Marketing where he led centralized outbound marketing, spanning marketing campaigns, press, events, web, digital marketing, ecosystem programs, and working closely with investor relations. Prior to Arm, John had an 11-year tenure at microprocessor startup Transmeta where he held several senior roles spanning business development, marketing, and customer success, among others. John earned his B.S. in Computer Engineering from Carnegie-Mellon University and an M.S. and Ph.D., both in Electrical Engineering, from Stanford University.
