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GM is expecting their Ultifi software will bring them a lot of money over the next few years. They're expecting that by 2030 it will bring $20-$25 billion in updates and subscription services.


GM is hoping to generate massive profit by offering various software-as-a-service products in its vehicles going forward, which will be delivered to customers through its connected Ultifi software platform. The automaker provided a clearer picture of its SaaS strategy in its Q2 2022 earnings report, outlining plans for Ultifi and its various paid connected features to generate up to $25 billion in revenue annually by as early as 2030.

Ultifi is an in-vehicle software platform that’s being rolled out to certain GM internal combustion engine models and EVs for the 2024 model year. The software will support various paid GM vehicle apps and features and will also support apps from third-party developers and companies. While certain Ultifi apps will be offered by GM, such as paid vehicle comfort and convenience features, the automaker will have a revenue-sharing model for paid apps developed by outside companies.
 

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I'm not totally opposed to this model as it allows them to continue to provide updates to the customer after the sale. I have two major concerns:

  1. COST - the article mentions that their research shows that people are willing to spend up to $135 per month for services/apps. That is outrageous in my mind. For someone like me who doesn't even like having a car payment, that is a lot of money. I am ok paying a couple hundred per year if it includes frequent mapping updates for Super Cruise, OnStar service, and new functionality on a regular basis. I'm thinking $15 per month is more reasonable. I just don't spend enough time in my car to spend more than that.
  2. FEATURES - As I mentioned above, I am ok paying to get updates for things like Super Cruise maps, but I really hope this doesn't end up being something like what Toyota tried to do with a subscription for static features like remote start that don't change and don't require any kind of data. That would be a massive turn-off.
Crossing my fingers for some reasonably priced packages that don't disable features you bought if you don't pay. You just wouldn't receive updates.
 

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BMW wants to charge a monthly fee for things like heated seats and heated steering wheels to be turned on (BMW starts selling heated seat subscriptions for $18 a month).

They also want CarPlay to be subscription based. (We Found Out Why BMW Charges $80 a Year for Apple CarPlay)

If GM tries to play this game I will not buy their cars. I have been a GM fan my whole life. I have never paid to continue trials from Satellite radio or Onstar one time in all my time with GM vehicles and I won’t do it for super cruise or Wi-Fi either.
 
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