GM CEO Mary Barra: Software, Services and Autonomy Mean Growth

general motors The company’s chief executive officer, Mary Barra, said Friday that the biggest revenue opportunity lies in software and services that go beyond what vehicles currently offer, rather than charging for features such as heated seats that customers already expect. said he believes there is

Barra said at the Bernstein Investor Conference on Friday that such software and services represent a huge growth opportunity for GM, especially as it extends beyond the vehicle’s original owner. He said automakers have learned from OnStar’s safety and connectivity services what consumers are willing to pay for and what to expect from a car.

Barra said GM has an appetite for “more than ever,” citing safety and security services, in-vehicle wireless hotspot capabilities and vehicle customization.

“If I buy a car today and two years from now something new is invented or a new service or feature is added, people are willing to pay for it. she said. she said. “The team has already done a lot of work. We’ve done a lot of research to understand what consumers pay for and what they don’t pay for.”

Some automakers, including BMW, have angered customers by charging monthly fees in foreign markets to activate built-in features such as heated seats.

GM states that software and services may generate Sales are expected to reach $25 billion by 2030. The company recently hired Mike Abbott, who was the head of cloud services at Apple. Appointed Executive Vice President of Software He is responsible for a reorganized team focused on information and digital technologies, software-defined vehicles and operating systems, and digital business.

Barra said on Friday that Abbott’s hiring is an example of GM “bringing in outside talent with experience in the field” as it makes the transition.

Not only GM Pursuit of software applications and subscription functions It can bring in additional revenue beyond the initial sale of the vehicle. Ford Motor Company said it has about 600,000 customers paying for its subscription service. Ford Pro at 400,000 200,000 commercial units and 200,000 BlueCruise hands-free driver assistance systems.

The 400,000 Ford Pro subscribers represent a 60 percent year-over-year increase, and Ford Pro expects that number to triple by 2026.

“The software and services part allows for a completely different profit structure and a longer relationship with our customers: customers for the life of the vehicle,” Barra said. “The average age of a car in the U.S. is now over 12 years, so you need your first, second, third customers and their connectivity. That’s why we’ve made some decisions and we want to make it happen: Own the customer relationship.”