The long and painful history of GM with software
In 2023, General Motors (GM) made a rather ambitious move for an incumbent automaker—ditching CarPlay and Android Auto in favor of rolling out its own proprietary software layer in partnership with Google. The decision was met with a collective groan from both industry insiders and everyday drivers, as it seemed to reflect GM’s deep misunderstanding of how interconnected our digital lives have become and how complex dealing with software would be.
Like it or not, but for years, CarPlay and Android Auto have been the gold standard for integrating our digital lives with our cars. These platforms allow us to seamlessly connect the supercomputers in our pockets to the vehicles we drive, creating a cohesive experience across devices. When GM decided to claw back control, they also decided to cut off from these network effects that come from being part of these mega-secosystems.
And here’s another thing: most Gpeople don’t buy GM cars for the sheer love of GM. They buy them because they provide the right amount of utility for their budget. Inlcuding using their phones —the hub of our digital universe— seamlessly. Software isn’t just a feature—it’s the glue that holds the entire experience together.
Tesla and Rivian, the poster children of Silicon Valley’s foray into the auto industry, got it right. They understood that the software running the car’s systems isn’t just another feature—it’s the heart of the user experience. Both companies built their own in-car software stacks, and while you can argue about Tesla’s polarizing interface, there’s no denying that their approach was cohesive, intuitive, and deeply integrated with the rest of the driving experience. You could consider these companies "digital native."
GM, on the other hand, isn’t exactly known for its software chops, and their decision to partner with Google only underscores their lack of confidence in going it alone.
What’s even more frustrating is the motivation behind this decision. GM wasn’t doing this to make the driving experience better; they were largely doing it to create a new revenue stream. They openly admitted that they’re gunning for $20 billion to $25 billion in subscription revenue by 2030. This focus on monetization over user experience is exactly the kind of thinking that drives people away. Sounds amazing in conference room but deliver poorly on the market. If in doubt, remember that delivering products that customers want to buy is always the best monetization scheme.
Fast forward to today and GM seems to understand they painted themselves in a corner:
General Motors is laying off more than 1,000 salaried employees globally in its software and services division following a review to streamline the unit’s operations, CNBC has learned. The layoffs, including roughly 600 jobs at GM’s tech campus near Detroit, come less than six months after leadership changes overseeing the operations, including former Apple executive Mike Abbott leaving the automaker after less than a year in March due to health reasons. (...) The job cuts represent about 1.3% of the company’s global salaried workforce of 76,000 as of the end of last year. - source CNBC.
