Mary Barra on Software Services Revenue

The transcript discusses GM's strategic shift towards becoming a software-centric company. It envisions a future where revenue from software, services, and subscriptions equals or surpasses that from vehicle sales. The discussion highlights the potential for higher margins in services, using OnStar as an example. GM's existing scale and customer loyalty are seen as advantages in this transition. The company has been preparing for this shift over the past five years, reorganizing its software development and proving its capabilities with successful internal projects.

What is GM's vision for its revenue streams in the next decade?

• GM will focus solely on vehicle sales.

• Vehicle sales will remain the primary source of revenue.

• Revenue from vehicle sales will decline significantly.

• Software, services, and subscriptions will match or exceed vehicle sales revenue.

How does GM's OnStar service compare to vehicle sales in terms of profit margins?

• OnStar does not contribute to GM's revenue.

• OnStar has a lower margin profile than vehicle sales.

• OnStar has a higher margin profile than vehicle sales.

• OnStar and vehicle sales have similar margin profiles.

What is a key factor that allows GM to access its software platform?

• The scale of its vehicle sales.

• The decline in semiconductor availability.

• The decrease in vehicle production.

• The reduction in customer loyalty.

What transformation has GM undergone in the past five years?

• Transitioned from a software company to a vehicle manufacturer.

• Focused solely on increasing vehicle production.

• Started developing software externally.

• Reorganized to become a software company.

What advantage does GM have over pureplay software companies?

• Lack of hardware capabilities.

• Established customer relationships and integrated hardware and software.

• Limited software development experience.

• Focus on vehicle sales only.