General Motors has decided to drop the popular Apple CarPlay infotainment experience, despite strong consumer preference for the platform. However, GM’s CFO Paul Jacobson believes that they need to respond with a program and customer package that is equally, if not more compelling.
With GM’s partnership with Google and their vehicle data, they are confident they can create an experience customers will love.
Late in March, GM announced that they would phase out Apple CarPlay and Android Auto and implement a new built-in infotainment system developed with Google for their future line of EVs. The phase-out process will start with the 2024 Chevy Blazer EV.
GM is aiming to collect more data to better understand drivers and increase their profit margins in the long run. By 2030, GM is looking to achieve profit margins of over 20% on “new businesses,” which is above the company’s overall 2030 operating margin goal of 12% to 14%.
One possibility being discussed is that GM may introduce a subscription-based model for various services, including insurance, by utilizing the vast amount of data it possesses. Jacobson also noted that data and software are key areas of competition for companies and that GM is moving in that direction.
