Do GM Layoffs Signal a Speed Bump for Connected Cars?

Layoffs signal that a company is changing strategies, pulling back … maybe the market demand is not there that had been anticipated.

In the wake of General Motors’ latest corporate actions, is it fair to say that the road ahead for connected cars — and by extension, connected car commerce — may be bumpy?

Given the spate of partnerships, the emergence of artificial intelligence (AI), the apps and the voice assistants, the road ahead is long and winding.

As widely reported this week, General Motors laid off over 1,000 salaried employees in Software and Services, its division focused on infotainment, OnStar, subscriptions and other emerging features. A posting through GM Financial noted the continuum of data-driven offerings and indicated that among the conveniences of connected vehicles: “In addition to the branded apps specific to your vehicle, GM Financial has a mobile app to manage your account, pay your bill or message us from anywhere.”

The layoffs come a few months after public criticism helped steer General Motors away from sharing connected car data with brokers.

“As of March 20th, OnStar Smart Driver customer data is no longer being shared with LexisNexis or Verisk,” GM said. Data, of course, remains a critical component of powering the subscriptions, the infotainment, car diagnostics and commerce.

In the meantime, in reference to data and privacy concerns, Vero and Privacy4Cars have partnered to provide privacy tools and identity protection services for owners of connected cars. The new Identi-FI solution covers the deletion of data from connected cars and the recovery from identity theft, the companies said in March.

AI’s Role for Rides and Commerce

As has been seen in so many other verticals, AI is grabbing its share of connected-car-related headlines beyond the confines of the entertainment available to the driver in the cockpit. As reported earlier in August, DC Connected Car has raised €2.1 million ($2.29 million) for its AI-driven remote vehicle diagnostics offering. The funding will be used to help DC Connected Car develop AI diagnostic tools for roadside assistance, warranty and repair.

And where GM may be retooling/sharpening its connected focus, a host of other partnerships and joint efforts and announcements have shown that the connected car’s evolution still has wheels.  The movement toward connectivity in motion comes as PYMNTS Intelligence has found in its “How the World Does Digital” reports that voice technology is used by 15% of consumers for payments at least weekly; music streaming by roughly half of consumers, traffic related apps by a third of people surveyed across 11 countries.

In one example of automakers’ efforts, Ford and its luxury brand Lincoln are enabling customers to access apps and services in their vehicles through a new integrated native experience. Drivers will also be able to do so with Apple CarPlay and Android Auto, the company said at the beginning of the year.

The driver can access the system through a touchscreen control panel and buttons on the steering wheel. Drivers can place apps and services where they want them on the screen and can see information like media, weather and fuel economy via widgets. The rollout also features integrated Google Maps; the option to use Google Assistant or Alexa Built-In as a voice assistant.

As for the commerce aspect, last year, Mercedes-Benz introduced Mercedes pay+, which leverages Visa technology to facilitate seamless in-car payments via a fingerprint sensor integrated within the vehicle itself. And in 2021, J.P. Morgan teamed up with German automaker Volkswagen to acquire about 75% of its Volkswagen Payments S.A.

In June of this year, Stellantis announced it would be rolling out several software products and connected features for its vehicles around the world for its roster of brands such has Chrysler, Fiat and Peugeot. They include ChatGPT-enhanced virtual assistant that can converse with customers in natural language, and AppMarket, an in-vehicle hub for services and experiences that allows drivers to purchase subscriptions in the vehicle.

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