General Motors Company (NYSE:GM) has the largest number of connected vehicles on the road, and the company has plans to do more in the future. By implementing in-car connectivity, GM is able to unlock new revenue streams. According to CEO, Mary Barra, incremental revenue related to connected vehicles could reach $350 million by 2018.
It is estimated that millions of cars with wireless hotspots will be cruising American roads by 2020. That is the forecast, but GM is already counting solid numbers of connected cars bearing its mark on the road. The company says that at least 1 million of its vehicles with 4G LTE connectivity are on the road, compared to 50,000 of the competition combined.
General Motors Company (NYSE:GM) may be enjoying the podium position as the carmaker with the most number of wireless-enabled cars on the road, but there is more to come. Management is saying that what you have seen is only the beginning.
Benefits to drivers
With high-speed Internet connectivity in the car, drivers can benefit from real-time maintenance and navigation support. Wireless connectivity in the car also broadens entertainment opportunities for the car passengers.
For General Motors Company (NYSE:GM) and other automakers implementing in-car wireless connectivity, there is money to be made. GM is looking to generate at least $350 million in revenue from wireless hotspot implementation in its cars by 2018. As much as $350 million may look not great given GM’s nascent in-car connectivity business, the amount is only conservative.
Almost all of GM’s 2016 models are expected to ship with high-speed wireless connectivity feature. Drivers can pay $5 a month for wireless data service from GM. The company has partnered with AT&T Inc. (NYSE:T) to provide high-speed wireless service in its connected vehicles.
Getting dealers involved
To get dealers deeply involved in the vehicle wireless strategy, General Motors Company (NYSE:GM) has hired experts to train them on how to help customers with connectivity issues.