An emerging generation of tech-savvy consumers has changed the way GM and its rivals approach in-car entertainment and navigation systems, as the firm is pushing ahead its plans to introduce fully Internet-compliant vehicles next year.
If done well, these systems can draw new buyers and allow auto makers to tap new sources of revenue and boost profit margins.
So far, many customers and car reviewers have complained that these so-called infotainment systems are clunky and harder to use than the phones in their pockets.
Auto makers have struggled to find ways to update in-car software so it does not appear outdated over the course of the car’s life.
GM says it will be able to make these updates more quickly starting with its 2015 lineup.
A Reuters report on Monday said by mid-2014, the number one United States auto maker would start selling Internet-capable vehicles that GM said would allow passengers in the backseat to watch streaming video.
This feature also gives GM the chance to sell advertising within the car itself.
The average American spends just over four hours a week commuting to work, according to federal data.
This potentially gives advertisers a chance to promote their brands to a captive audience.
“For example, what happens if when the logo shows on your screen, it says ‘brought to you by Allstate’?” said Akerson, using Allstate Corp’s name to illustrate GM’s options.
“How many times is that going to pop? And how much can you get from Allstate?”
GM will earn $20 from each customer who signs up for the Internet service.