Dan Akerson, a former telecommunications executive, told that General Motors Company (NYSE:GM) will come up with a car targeted at U.S. automaker’s top executive, keeping in mind the tech savvy users.
“I have grandchildren that have only grown up in a world with smartphones,” Akerson said on a conference call on Thursday to discuss GM’s quarterly results.
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Presently, the world revolves around smartphones, so the tech-savvy consumers have forced the car makers to alter their approach to in-car entertainment and navigation systems. As per the executive, if these tech changes are carried well, they could definitely result in new buyers and open another source of revenue for the car makers.
Automakers have been getting complaints from customers and car reviewers about the inconvenience in using the systems. The car makers have been toiling hard to find software or any trick that can popularize the outdated systems currently in place.
General Motors Company (NYSE:GM) Plans
General Motors Company (NYSE:GM) believes that its 2015 lineup will have some user friendly updates. The US automaker plans to roll-out Internet-capable vehicles by mid of 2014 that will allow the passengers even in the back seat to watch streaming video. The new update also gives an opportunity to the car maker to sell advertising on the go. According to federal data, an average American spends about 4 hours a week commuting to work. These four hours can be crucial for advertisers. The No. 1 U.S car maker will charge $20 for the internet service.
The US car maker is also planning an in-vehicle OnStar service connecting the driver to live operators for directions or emergency help. However, the company is yet to reveal more details on the service. According to an analyst from Citi, OnStar is worth $5 billion to $7 billion and generates annual revenues of about $1.5 billion. The analysts also believes that GM is comparatively in a better position to “capitalize on connected global trends.”
However, some of the analysts believe that introducing advertising in the car may adversely impact the revenues. But, when compared to the convenience offered by the new service, including real-time navigation and traffic information, the concerns does not appear menacing.
The concerns can also be countered by a recent study by JD Power and Associates, revealing that more half of vehicle owners believe their next vehicle would “definitely” or “probably” include wireless connectivity.
General Motors Company (NYSE:GM)’s 2015 line ups including Chevrolet, Buick, GMC and Cadillac models which are expected to have an inbuilt 4G LTE mobile broadband facilitating faster flow of data.