General Motors has enlisted the help of a former Apple executive to develop in-vehicle software features.
Mike Abbott, who formerly served as vice president of engineering in Apple’s Cloud Services segment, has been hired as executive vice president of software and will report to GM CEO Mary Barra.
“His team will be responsible for the entire software ecosystem, from inception and development of both consumer and enterprise solutions through to the delivery of new exciting digital services and features,” Darryll Harrison, a GM spokesman, told the Detroit Free Press.
Some of the features Abbott and his team are expected to develop for the auto giant will be subscription services, while other features will be standard offerings in new models, Harrison said.
The auto industry has been developing subscription-based services for their vehicles. With many automakers moving towards autonomous technology, cars will be more reliant on software in the future, prompting a new revenue stream.
Goldman Sachs analysts say these new revenue streams could substantially increase auto industry profits.
“The automobile industry is on the cusp of a major inflection point with vehicles that are increasingly connected and software-defined, including electric and autonomous vehicles,” Goldman Sachs Research said in a report.
“If automakers can successfully monetize the new value provided by these cars, they should be able to deliver profits beyond the reach of their prior business models.”
In 2022, GM said that software-as-a-service (SAAS) will generate $20 to $25 billion in annual revenue by 2030, the Free Press reported.
Last year, BMW generated buzz after announcing it would offer subscriptions for heated seats in some countries for $18 per month, but GM has yet to announce a similar plan.
As vice president of Apple’s Cloud Services, Abbott and his team developed core infrastructure.
“I’m a product person at heart, so as the transformation of transportation quickly accelerates, I know that software is the catalyst for redefining experiences for consumers and enterprises like never before,” Abbott said in a press release from GM.
“GM is playing a pivotal role in this shift and I’m excited to join the team and bring my experience in software to bear to not only take advantage of the massive opportunities that lay ahead for the company but to help change the world.”
Barra said in the press release, commenting about the new hire, “Mike’s experience as a founder and entrepreneur coupled with his proven track record creating and delivering some of the market’s most compelling software-defined solutions for consumers and companies make him an excellent fit at GM.”
“We have entered the next phase of our technology driven transformation focused on rapidly scaling new EV models and our Ultifi software platform, which will drive faster innovation and enable new and exciting customer experiences.”
GM recently announced that it was ditching Apple Carplay and Android Auto and replacing them with a new infotainment system that is built into the car, as reported by The Dallas Express.
