GM Covers CarPlay Money Grab With Apple Music Consolation
I’ve previously written about how General Motors promised investors its future cars would be a “technology platform.” The automaker targeted more than $20 billion in annual software revenue, much of it from subscription charged. To reach that goal, GM deleted Apple CarPlay and Android Auto from its vehicles. Owners must now shop in GM’s software marketplace instead.
As drivers objected, the automaker offered a consolation prize. GM said it would install Apple Music. That olive branch feels downright insulting.
Many consumers are already fed up with software subscriptions. But General Motors has dollar signs in its eyes. In 2022, Alan Wexler, GM’s senior vice president of strategy and innovation, spoke with the Detroit Free Press. The automaker had recently told investors it hoped to make $20 billion to $25 billion annually from software by 2030.
Wexler admitted, “We looked at subscriptions in people’s lives: What are you paying for Netflix or a music app? We took a very comprehensive look at peoples’ willingness to buy.”
Why deleting CarPlay gave GM total control
Right on schedule, GM deleted Apple CarPlay from new models in late 2023. Apple creates the software and provides it to automakers at no cost. CarPlay allows drivers to use third-party apps through their vehicle’s infotainment system.
Without CarPlay, GM now completely controls the software ecosystem in its vehicles. It can charge developers for access. It can also charge drivers directly. If GM fails to reach its $25 billion subscription target, it may turn to ads on infotainment screens. Stellantis, Subaru, and Tesla already do exactly that.
When buyers complained, GM offered its fallback plan. It “cut a deal” with Apple to allow Apple Music in certain Chevrolet and Cadillac models. But few drivers miss CarPlay because of Apple Music. Most relied on it for Spotify, navigation apps, and messaging.
Drivers see through the move. In a recent study, 55% of respondents said losing Apple CarPlay would be a deal-breaker when choosing a new vehicle. General Motors may got greedy and lost an entire generation of buyers.
