Here's why GM is dropping Apple CarPlay
General Motors (GM) says it's doing the right thing for its business by driving away from the popular Apple (AAPL) CarPlay infotainment experience.
"There are many manufacturers today that don't have CarPlay," GM CFO Paul Jacobson said on Yahoo Finance Live (video above). "But I think we recognize that the burden's on us. If we're going to take that feature out of our vehicles, we need to respond with a program and a customer package that is equally as compelling, if not more compelling. We think with the partnership we have with Google and ultimately with the vehicle data we have, we can create an experience that customers are going to love."
The auto giant said in late March it would phase out Apple CarPlay and Android Auto, despite the strong consumer preference to use the platforms for everything from maps to music controls. Apple CarPlay is supported in 800 vehicles, the tech giant said.
In place of CarPlay, GM will stand up a new built-in infotainment system developed with Google (GOOG, GOOGL) for its future line of EVs.
GM will begin the phase-out process of CarPlay with the 2024 Chevy Blazer EV.
By making the move, the company is aiming to collect more of its own data to not only better understand drivers, but to pad its longer-term profit margins.
GM told investors on Tuesday it's looking to achieve profit margins of more than 20% on "new businesses" by 2030. That would be above the company's overall 2030 operating margin goal of 12% to 14%.
Pros have speculated GM could charge subscriptions for services such as insurance by tapping into an accumulating stream of data that it owns.
"It's part of where we're going as a company," Jacobson added. "Obviously data and software is a big competitive space across the board."
Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn. Tips on deals, mergers, activist situations or anything else? Email firstname.lastname@example.org
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