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 Vehicles0:44 Introduction to Derek De Bono3:48 Overview of Valeo5:01 Transition to Software Defined Vehicles7:44 The Role of AI in SDVs9:03 Collaboration in the Automotive Ecosystem13:18 Opportunities for OEMs and Consumers16:11 Revenue Models for Software Updates20:42 Future Trends in Autonomous Driving24:52 Conclusion and Closing Remarks