GM has 1 million connected cars on the road in 2015, giving it a commanding lead in connectivity compared to an estimated 50,000 for the rest of the industry combined. By 2020, about one in five vehicles on the road worldwide will have some form of wireless network connection, amounting to more than 250 million connected vehicles, estimates Gartner, a research group.
Auto manufacturers are racing to meet the expectations of mobile-first customers with vehicles that include a wireless network connection. High-speed connectivity will enable dozens of new, revenue-generating applications. That includes everything from maintenance adjustment and emergency response to navigation help and passenger entertainment.
What’s The Impact Now GM Has 1 Million Connected Cars?
GM CEO Mary Barra estimated the financial impact of these sorts of services at a rather modest $350 million between now and 2018. But, Barra believes that ties the carmaker can forge with owners, drivers and passengers will go beyond the car itself.
Imagine, for example, being able to transfer all of the setting preferences from your primary vehicle — climate control, seat positions, routing preferences — to another GM model that you’re renting during a business trip.
GM research shows in-vehicle technology is up to three times more important than traditional measures such as fuel economy and horse power to car buyers.
Last year, GM began offering 4G LTE-equipped vehicles starting with the 2015 Chevrolet Malibu, which it followed with more than 30 other Chevrolet, Buick, GMC, and Cadillac models. By the end of 2015, GM expects to offer about 40 models with Wi-Fi connectivity.
Increased Capability Of GM’s 1 Million Connected Cars
Earlier this year, GM began talking more about an aggressive push into high-speed 4G wireless services that accelerated last year, thanks to its blossoming relationship with AT&T
The increased consumption and creation of digital content within the vehicle will drive the need for more sophisticated infotainment systems…new concepts of mobility and vehicle usage will lead to new business models and expansion of alternatives to car ownership
Base connectivity is free for five years. The free plan provides predictive maintenance alerts, warning drivers of potentially dangerous conditions such as issues with the battery, starter motor, or fuel pump. GM already offers supplemental wireless data services, which owners can purchase starting at $5 per month.
Dealer Impact Because GM Has 1 Million Connected Cars
As GM introduces new technology and services to its cars, it helps dealers stay up to date on the advances with increased training and resources. That includes Connected Customer Specialists who visit dealerships in their region and educate new customers on how to use their vehicle’s technology. In the past three years GM has more than doubled its team of Connected Customer Specialists and is up to 55 specialists in the U.S. and seven in Canada.