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GM Is Quietly Becoming a Subscriptions Company (businessinsider.com) 132

Posted by BeauHD from the subscribe-to-drive dept.
"General Motors has been pulling a Tim Cook and boosting its software and subscription business," reports Business Insider. During the automaker's Tuesday earnings call, executives said they're increasingly leaning on software subscriptions like OnStar and Super Cruise to generate high-margin recurring revenue long after customers buy their vehicles. GM says OnStar brought in about $800 million in the second quarter, while Super Cruise revenue grew about 70% year over year. From the report: GM says its software business keeps roughly 70 cents of every dollar it brings in. That's a rare level of profitability in the auto industry, as many car sales generate just four to 10 cents per sales dollar. [...] GM expects to add about 1 million OnStar subscribers this year, bringing the total close to 13 million. Super Cruise, GM's hands-free, eyes-on driving system, is growing even faster. GM added about 70,000 subscribers during the quarter and expects to end the year with more than 850,000. Revenue from the service increased about 70% from a year earlier.

And a lot of drivers are sticking around after the free period ends. GM said between 30% and 40% of eligible owners continue paying after their included three-year Super Cruise subscription expires. [..] "We do think we have tremendous levers, multiple levers of growth," Barra said on the call. "We definitely think there's a lot of opportunity at GM to grow, improve margins, and become less cyclical."

"Software and services are becoming increasingly important to how customers experience GM vehicles and how we deliver value beyond the initial purchase," a spokesperson previously told Business Insider. "As vehicles become more software-defined, we can introduce new digital experiences through updates and optional services rather than hardware changes."

GM Is Quietly Becoming a Subscriptions Company More | Reply

GM Is Quietly Becoming a Subscriptions Company

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  • Yeah, no (Score:3, Interesting)

    by jrnvk ( 4197967 ) on Wednesday July 22, 2026 @07:04PM (#66252312)

    They can spin this all they want, but only a small percentage of people are actually willing to pay for a subscription to their vehicle. Certainly not enough to sustain a business model around it for the long term.

    • You'd be surprised. I'll bet the normies who buy their vehicles would pay, no questions asked.

    • Re:Yeah, no (Score:5, Informative)

      by darkain ( 749283 ) on Wednesday July 22, 2026 @07:28PM (#66252350) Homepage

      "OnStar brought in about $800 million in the second quarter"

      • Re: (Score:3)

        by zlives ( 2009072 )

        i wonder if they were never notified as an option they can choose not to pay for. built into the sticker/transaction like the other shady "extra warranty and gap coverage bullshit"

        • Re: (Score:3)

          by Junta ( 36770 )

          I can't speak to it as I don't have a GM car, but do note they removed Android Auto and Apple Carplay from many of their vehicles, precisely to drive people to buy OnStar to have the big driving friendly displays be able to do the things many folks just started using their phone for when CarPlay/Android auto became a thing.

        • We have a new GM and just set up to cancel the OnStar after the free trial, it is a separate bill so not that different from, say, SiriusXM in the sense that the car comes with the hardware but you need to subscribe to use it. It does have more features nowadays than our older Chrysler had, that service was primarily a WiFi hotspot plus being able to call for a tow and was ludicrously expensive. The new stuff would be a better deal but still not really worth it to us.

        • I wouldn't, but I can imagine people willingly pay for OnStar.

          It doesn't feel as dirty since it isn't just all sitting there. It reaches out to the cellular network. I can imagine people getting decent value for remote start that works in parking garages, and the accident help (people worry).

          It doesn't feel like a subscription for a seat heater or super cruise which are both already there.

    • Most probably don't notice the charges or are too lazy to call up and cancel. I guarantee it won't ever be as easy as click here to cancel.

    • Re:Yeah, no (Score:4, Insightful)

      by noshellswill ( 598066 ) on Wednesday July 22, 2026 @07:56PM (#66252390) Homepage
      You assume rationality.  GM hopes to repeat the behavior of APPLE corpse .... and sell  expensive transportation jewelry all gussied-up like a car. Body-by-Fisher now means fishing customers wallet for 70% profit.

      • Re: (Score:2)

        by mjwx ( 966435 )

        You assume rationality. GM hopes to repeat the behavior of APPLE corpse .... and sell expensive transportation jewelry all gussied-up like a car. Body-by-Fisher now means fishing customers wallet for 70% profit.

        And they're failing to remember that they're GM, not Porsche who might be able to get away with this shit because they make good cars and have a legion of fanboys (and they already do it, you're not even allowed to order the really high end Porkers unless you've previously bought several).

        The problem the consumer faces is that they don't buy cars any more, so they don't own them... Meaning that all these subscriptions just get rolled into the monthly payments. This isn't so much of an issue for the perso

        • Nice point. As you observe Porche already makes excellent cars, so appending "jewelry" to the product adds little value beyond the current sparkling performance. Like a closely-held computer application shop, whose 20-year experienced /devs and managers do NOT need to immerse their brand in *.AI trimmings and "shine". Their code and function is already rock-solid and w,r,t, extensions sales engineers can walk-the-walk. Yes, I do have kind memories of my 1960 Chevy Impala convertible ... an Ameri

    • Re: (Score:2)

      by caseih ( 160668 )

      If it's like Jeep, the salesmen are punished if customers don't sign up for the monthly services. Of course the first few months are always free and you can always cancel at any time they say.

      • Or the shitty car salesmen surreptitiously sign uo buyers without telling them

    • Pay up (Score:2)

      by PPH ( 736903 )

      ... or we'll make you shift it yourself [slashdot.org].

      • Re: (Score:2)

        by SumDog ( 466607 )
        Both of my vehicles are still stick shifts, a 5spd WRX and a 6spd Tacoma. You'll take them from my cold dead hands!

    • Re: (Score:2)

      by torkus ( 1133985 )

      Yes and No.

      If it's something physical like heated seats...that's a hard no.

      If it's something subject to ongoing development and improvement like FSD then probably yes.

      I still GREATLY prefer one and done purchase but things like FSD are...immature. You can't just buy it like adaptive cruise control and it's limited but works as advertised.

      I still hate *aaS nonsense but there are a few times where paying for the thing results in improvements that make it well worth it.

      Fast forward a ... while. I can see FSD d

      • Re: (Score:3)

        by tragedy ( 27079 )

        In a world that isn't totally encrapified, self-driving should be a module kit you can get for basically any car that's built to an open standard where you just plug in the control module and the sensors, etc. into a bunch of standard receptacles and your car from any manufacturer will then have self-driving provided by the module from some other manufacturer. Seriously, a self driving system is so fragile that it can only as a built in from one specific manufacturer and its driving model can't work with a

        • You are partially describing Comma.ai and the OpenPilot community. Hardware is proprietary, but the software is OS. There are a few hundred models of vehicles it works with.

      • Re: (Score:2)

        by DrXym ( 126579 )
        More likely it will be hot garbage heavily promoted on your your infotainment system with no way to hide or disable it. Satellite radio, OnStar of course but anything streamable, maybe also features you take for granted. Oh, and there is so much potential for ads unless you pay. And don't forget that GM is getting rid of support for Android Auto and Apple Carplay just for good measure. Don't buy GM vehicles. Don't buy any vehicle that pulls this shit.

    • Re: (Score:2)

      by jhoegl ( 638955 )
      70 cents on the dollar says they dont have to have a lot, but 800 mil/year on what... $15/mo or whatever it is? They have enough people grabbed on this crap.
      And dont be naive, other car companies are looking at this profit and salivating.

    • There's no spin when reporting revenue figures. Also this is nothing new in the car industry. Subscription fees have been a profit centre big enough to sustain a business model around them for a decade now.

    • Re: (Score:2)

      by necro81 ( 917438 )

      only a small percentage of people are actually willing to pay for a subscription to their vehicle

      TFS: "GM said between 30% and 40% of eligible owners continue paying after their included three-year Super Cruise subscription expires." That's more than a small percentage.

      On the flip side, it means that 60-70% - well more than half - aren't continuing. They also don't define what "eligible owners" means.

      • Re: (Score:2)

        by DrXym ( 126579 )
        Do they continue paying because they want to, or because their subscriptions were renewed without a reminder or consent?

    • I think you'd be surprised. On this very site there were a few people saying they would pay a heated seats subscription because they live somewhere cold (way back when BMW announced their ingeniousness: https://tech.slashdot.org/stor... [slashdot.org] - which they later u-turned on, btw).

      Personally, I won't pay a subscription for something that's not costing *them* something per month. There's not much I want from my car manufacturer that costs them per-month. It was once that GPS maps was an annual purchase, but now we h

      • Re: (Score:2)

        by Junta ( 36770 )

        It was once that GPS maps was an annual purchase, but now we have phone integration, that's not a thing any more. If they'd made their car infotainment systems better, perhaps we wouldn't need phone integration quite so much, but they didn't and so here we are.

        GM has a 'fix' for that:
        https://news.dealershipguy.com... [dealershipguy.com]

        Why make infotainment systems better, when you can just make phone integration worse?

    • Re: (Score:2)

      by Junta ( 36770 )

      This is why they removed Android Auto and Apple Carplay from their vehicles. They are betting people are so loyal to GM that they'll pay for OnStar instead of just using their phone apps on the big screens like everyone else does.

      Emboldened by the fact that Tesla similarly dismisses that feature and people bought Tesla's just fine.

      Seems to be working based on the numbers, and the fact that someone at work who is a supreme fan of GM who has always just bought GM is disappointed that his next car won't work

      • From my perspective, GM suffers from the delusion that they are the market leaders that every other company should follow. One of my coworkers worked for GM. They offer employees discounts to buy GM cars. But the discounts are very small and laden with so many restrictions, it is not worth using. She could walk into any dealership as a member of the general public and get a better deal as she could not take the discount and take whatever incentive the dealership was offering (interest rates, discounts, etc.
    • You do understand the subscription is not for the vehicle but for the Super Cruise driving feature? That feature requires continuous updating for road changes.

      In this way the car is your phone and the subscription to the Super Cruise is the phone's plan.

  • brakes only $4.99/mo or $50/year! (Score:5, Funny)

    by Joe_Dragon ( 2206452 ) on Wednesday July 22, 2026 @07:14PM (#66252326)

    brakes only $4.99/mo or $50/year!

  • Tesla is worth the $99/month, but GM supercruise isn't worth anywhere close to $40/month. It's unreliable, intermittant, and at times dangerous. GM has gone down the wrong path with it, and until they get something better, i would pass.

    • (99 * 12) / (5 * 52) = $4.57/day

      It's really easy to burn up more than this on tolls, especially here in Florida. Yeah, you'd have to leave a bit earlier to use FSD as a substitute for toll roads, but most of the stress of dealing with traffic is actually having to do the annoying stop-and-go pedal dance.

      I'm not simping for Musk here, heck, I don't even own a Tesla, but I'm just pointing out that people absolutely do already spend this kind of money just to get to their destination without the hassle of bei

      • I don't entirely agree.

        I'd say a fair amount of the stress is the stop go traffic, but a fair amount of the stress is the uncertainty of the amount of traffic and how long the journey will take. That stress can kick in in a taxi too when someone else is driving.

        It's one of the things I especially dislike about city driving is the variance in how long journeys take.

        Unfortunately you're talking about America, so you probably don't have low stress options.

  • So that's it for GM. BMW already went that way, VW, and Toyota is starting to sniff out the subscription markets too.

    I really wonder if there's going to be a car company out there that refuses to do this or everybody's going to be on the subscription bandwagon and we're all going to be looking for old non-smart vehicles.

    Here comes the return of the carbureted cars. This is going to be great for the environment. But maybe the EVs from China will have enough people hacking them to make them at least free fro

    • There's eventually going to be the Slate Truck, if you really want that early 90s throwback vibe. Personally, I'd rather have something a bit less spartan, even if it means that every once in awhile it nags me for not subscribing to OnStar. Different strokes for different folks.

    • >"So that's it for GM. BMW already went that way, VW, and Toyota is starting to sniff out the subscription markets too."

      Nissan already does it. They all do it, at least on some services. And if there are any that don't, they will soon. Once you spend a TON on a new vehicle with fancy features, you are stuck. Especially with the driver assist stuff that actually does rely on continued map and other updates. I will grant those services probably should be paid services. However, you are a captive audi

  • They don't even write good software! (Score:3, Interesting)

    by Tony Isaac ( 1301187 ) on Wednesday July 22, 2026 @08:19PM (#66252430) Homepage

    How many cars have you driven, that had elegant, well-crafted user interfaces in their software? Maybe Tesla? The rest of them write crappy UIs with menu trees that could only make a call center manager happy. (But don't worry, your call is very important to us.)

    If they used the money to do it right, I'd be slightly less unhappy with the concept.

    • I think part of the problem is that a lot of the people who design and manage user facing interfaces don't know how bad their stuff is.

      • Well, there's one way to make sure they know just how good or bad their design is: make them use it.
        • Cruel and unusual punishment... Make their managers drive it!

        • No. They'll just say "that's how it's supposed to be". What you'd need is to make them use stuff that's better. Tesla is pretty good, according to a friend. Make them drive Apple CarPlay or Android Auto fully enabled.

    • Re:They don't even write good software! (Score:5, Informative)

      by PhantomHarlock ( 189617 ) on Wednesday July 22, 2026 @08:36PM (#66252454)

      Tesla is awful due to the lack of physical controls where they would really make sense. It is an actively driver-hostile car. Other than the powertrain, which is amazing, the car is completely obnoxious. The door handles in particular are a huge problem and have been banned in China. Why would you intentionally make door handles that are super awkward to open rather than just pull? Why would you make someone dig through a menu to adjust the mirrors, or adjust the A/C vents and other controls? Trying to shift with the right stalk? Awkward and horrible. I think they thought it was sexy to just have a screen and nothing else, but in reality it just absolutely sucks. Before you say, "but have you owned one?" Yes, yes I have. It's my wife's current daily driver. And I avoid driving it like the plague.

      • Re:They don't even write good software! (Score:5, Insightful)

        by Tony Isaac ( 1301187 ) on Wednesday July 22, 2026 @08:53PM (#66252498) Homepage

        Yeah, I hate cars that have the often-used controls as touch-screen. I don't even like touch-screen radio controls. Give me a button to push or a knob to turn.

        But then, I drive a stick shift, so my opinion doesn't count. :-)

      • The absolutely most boneheaded Tesla UI decision was putting the speedometer on the infotainment. Anecdotally, driving around central Florida I almost never see a Tesla driver doing the usual "speed limit +5" - they're always either flying like a bat out of hell, or driving like Mr. Magoo. The worst ones are the drivers who alternate between both: they go slow as shit until someone tries to pass them, then they take off like a maniac, then begin slowing down again - pretty much the sort of behavior you mi

        • The absolutely most boneheaded Tesla UI decision was putting the speedometer on the infotainment.

          It would have been better to project it on the windshield if they wanted to be cool.

      • Tesla is awful due to the lack of physical controls where they would really make sense. It is an actively driver-hostile car.

        It is also dangerous as it makes you take your eyes off the road .... yes, it should only take a second -- but you know how it is, you often cannot find what you are looking for as quickly as you thought and before you know it you have driven 1/4 mile NOT looking at the car in front -- what happens if it were to brake suddenly ?

      • Well, I love my tesla y. I don't like the company much, but I love almost everything about the car, especially the tesla-specific design decisions.

        My favorite thing about it is the fact that the accelerator pedal is a speed control, rather than aping the behavior of pumping more gas into the engine. I'd be very unhappy going back to a car where I have to hit the brake pedal constantly.

        All the controls I use while I'm driving are mapped to the steering wheel (most of them by default), so I never need to

        • Re: (Score:2)

          by tragedy ( 27079 )

          My favorite thing about it is the fact that the accelerator pedal is a speed control, rather than aping the behavior of pumping more gas into the engine. I'd be very unhappy going back to a car where I have to hit the brake pedal constantly.

          Technically I basically had that some time around 30 years ago. It wasn't the gas pedal though, it was on the steering wheel as part of cruise control.

        • One thing that drives me crazy is that there is a large contigent of people who think the accelerator and the brake are part of a binary system. That when they stop accelerating they must touch the brake. Especially when you are following them on long highway drives and it's just brake light, accelerate, brake light, accelerate, etc.

          Learn to control the acceleration so you do not need to touch that brake except to actually stop!

      • I think they thought it was sexy to just have a screen and nothing else, but in reality it just absolutely sucks.

        Even with a screen and nothing else, it shouldn't be difficult to adjust the mirrors or air conditioning.

        Arguable at startup, they should remind you, "Would you like to adjust your mirrors?"

    • Maybe Tesla?

      A few years back when my partner and I test drove a Model 3, I think we spent more time Googling things than actually driving the damn car. I'm sure once you get past the learning curve it's not so bad, but ultimately neither of us wanted to deal with that. For all the crap Chevy gets over "bad software", they did a damn good job just making the Bolt be a normal car that happens to be powered by electrons rather than dinosaur juice. That was what ultimately sealed the deal.

      Also, back then the Bolt had Ca

    • >"How many cars have you driven, that had elegant, well-crafted user interfaces in their software? Maybe Tesla?"

      Tesla blows it by having no dashboard, few physical controls, and having the horrible "tablet on a stick" look. They admittedly have good software/interface, but then ruined it with the physical implementation. Had they stayed with the original model S concept- a nicely INTEGRATED center panel and with a real dashboard display and good physical controls, I would have considered them. As such

    • Re: (Score:2)

      by AmiMoJo ( 196126 )

      Tesla has one of the worst UIs. Gear shift on a touch screen?

      MG has a decent UI. Physical buttons for important stuff, and you can program two of the steering wheel ones to do various things.

      • Never driven a Tesla (or Indeed any electric car), so would you care to elaborate? I assumed electric cars don't have gears!

        • Re: (Score:2)

          by AmiMoJo ( 196126 )

          Most EVs don't have gears, although some have fake software gears to simulate driving a fossil. A bit like the fake engine noises in some exceptionally silly cars.

          Well, most EVs do have a fixed reduction gear, because it's more efficient to run the motor at higher speed. No clutch though.

          But you do still need a forward, reverse, and neutral "gear" selector of some sort. Most cars have a knob or lever. Tesla has a swipe on the touch screen. Combined with their now retired yoke instead of a steering wheel, pa

          • Oh yeah I forgot about reverse (and N), I rarely drive automatics these days. That's insane! What's weird is it seems to be the higher end cars which lean more heavily into worse (i.e. screen based) controls. I get semi-regular sampling via hire cars of what's going on, and I've started to kind of prefer when I get the model I hired, rather than the more expensive sub (which is the majority of the time if you pick the cheapest, it seems). Also currently less of that shit with vans.

    • It doesn't help that the hardware it runs on needs to be both as cheap as possible and locked down quite early in the vehicle development cycle, which means that it's going to be old and slow on day one of sales.

      It would make sense for the infotainment/vehicle UI box to be treated as a "wear part" like brakes and tyres, with a standardised, plug-in interface so it can be replaced and upgraded over the life of the vehicle.

      Of course, because it would make sense - and cost a fraction more per unit to produce -

    • Sadly, some of the most valuable software companies in the world don't write good software. IBM, Oracle, Microsoft, etc. Being good at sales is more important than writing good software. Maybe because consumers have no ability to evaluate.

  • Suckers (Score:5, Interesting)

    by PhantomHarlock ( 189617 ) on Wednesday July 22, 2026 @08:43PM (#66252474)

    So they're taking all your data, selling it, and making you pay for the privilege? Must be a nice business if you have zero scruples.

    Why do you need OnStar? Who would want to steal a GM car? All the GM brands are at the very bottom of Consumer Reports reliability index for 2026.

    OnStar uses cellular service to connect, so if you have an emergency, either both OnStar and your cell phone work, or neither work. So there's no advantage to using OnStar rather than just dialing 911. 911 services are allowed access to your phone's GPS location regardless of settings.

    It just seems like a pork package to sell along with the clear coat. Not to mention the theft of your data without compensation, whether you subscribe or not. You have to physically disable the modem to avoid that.

    • You have to physically disable the modem to avoid that.

      And nobody knows how to do that, and if they did there's no guarantee the car would keep working. I bring this up to prevent the quoted statement from making someone think that "disabling your car modem is a thing" people do... it isn't, despite many -- like myself -- very much wanting to do so.

    • What's worse is stock GM, Ford, and Stellantis vehicles lack proper coatings on their steel frames and they rust out in 5 years with mid-West or coastal ownership. A new vehicle must be undercoated yourself with a proper coating like spray-on bedliner.
    • And then there's unwanted Karr vulnerable Bluetooth remote unlock and immobilizers installed by the dealer even if you don't want it, they leave them.

    • Re: (Score:2)

      by taustin ( 171655 )

      Why do you need OnStar? Who would want to steal a GM car? All the GM brands are at the very bottom of Consumer Reports reliability index for 2026.

      Sounds like they get repaired a lot. Which means there's a big market for parts. Many car thefts are to strip them for parts.

      You didn't think people steal cars to drive around in themselves, did you?

    • Re:Suckers (Score:4, Informative)

      by AmiMoJo ( 196126 ) on Thursday July 23, 2026 @04:17AM (#66252818) Homepage Journal

      What else are you going to buy though? Trump banned their rivals who make better cars.

  • What is to prevent them, but US?

  • GM can keep their low quality vehicles and rent-seeking bullshit.

  • Wait until you start paying more per month on your car subscription than your car mortgage.

  • Subscriptions in today's world are bullshit. Keep your crap GM.

  • I would pay a fixed fee to make sure I never get any of their broken software updates.

  • The smarter the vehicle, the dumber the driver. That has been me observation for more than 30 years now. It's going to be a driving force behind a resurgence of garage enthusiast and older drivers taking things into their own hands. Ripping out GPS and satellite options, installing old-school radios with MP3 players and CD readers, etc. Good old key locks without a phone app option are still preferred by some of us.

  • Maybe I'm just too old school, but I really don't get the hands free craze. You can't browse your phone, read a book or really do anything but stare straight ahead. I guess it would be helpful in stop and go traffic but that's about it.

    • Agreed, although the adaptive cruise control is super nice for road trips. Anything more automated would need to be automated enough for me to safely take a nap to be worthwhile.
  • It's value-reducing revenue to GM. Value beyond the initial purchase would mean they were free. I can understand charging for OnStar, they have to pay operators. But for the hands-free driving? No. That should just be included in the base price. Like all their ongoing R&D costs.

    • Re: (Score:2)

      by Junta ( 36770 )

      Evidently they do at least have a rationale for that.

      Instead of LIDAR in every car, they push LIDAR maps that they maintain by regularly driving the supported roads.

      Of course, a LIDAR unit in the car would bring it back to a one-time purchase making sense, but initially that was too expensive, and now... well... they like the recurring revenue....

  • GM says its software business keeps roughly 70 cents of every dollar it brings in. That's a rare level of profitability in the auto industry, as many car sales generate just four to 10 cents per sales dollar...

    Is GM exiting hardware and switching to software vehicles?

    Will their upcoming model compete with Grand Theft Auto?

  • I'm surprised in this era that we have accepted that people are going to die in order to be more lazy. It shouldn't surprise me though, especially since we've laid down our very souls at the altar of technology with the unwavering belief that if tech is useful somewhere, it should be used everywhere. Of course, on this website, I'm casting seeds onto the rocks.
  • The BIG difference between GM and Apple, is that unlike Apple, GM has a lot of competitors who aren't going down this route, giving customers alternatives. GM does make some good cars, but they're not differentiated enough like an iPhone that people are going to put up with it just to stay in the driver's seat.

  • I'm not opposed to things like paying (one time) for a customized dashboard and screen experience. I have a Garmin watch and the custom watch faces for ~$3 are pretty frigging cool. 3rd party devs can build faces/skins/apps that can access the hardware safely through APIs. I have a 2015 Ford and the cloud service that used to provide software updates and vehicle health checks is shut down. A tiny cloud server node was too expensive for Ford to maintain or migrate to their current servers so they could keep

  • GM sold their profitable finance arm GMAC 20 years ago, even while struggling financially. Some executive will sell the subscription service to a third party for a quick buck soon enough.

  • Their CEO made it very clear in a keynote years ago that services is where they're headed and expected it to be a big growth area. General Motors announced $5.4 billion in revenue from OnStar and Super Cruise in 2025. It's not like they're doing any of this quietly.

    The 2021 target for GM’s in-car subscription/services revenue, GM said it could reach up to $25 billion by 2030.

    There's nothing "quietly" about it.

    https://www.gmarabia.com/en/ho... [gmarabia.com]

    https://techcrunch.com/2021/10... [techcrunch.com]

  • That's what they want, rent-seeking behavior.

    I have a Chevette (pronounced SHOVE-IT) once. I will NEVER buy GM again. (Bought it one year old. In five years, replaced a coil spring, the alternator, maybe the starter, and, oh, yes, TWO transmission rebuilds, one paid for by a class action lawsuit).

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