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Are the layoffs at GM a sign of a brake on connected cars?

Are the layoffs at GM a sign of a brake on connected cars?

Layoffs signal that a company is changing its strategy, pull back … maybe the expected market demand is not there.

Given General Motors’ recent corporate actions, is it safe to assume that the road ahead for connected cars – and thus for connected car retail – could be bumpy?

Given the large number of partnerships The Emergence of artificial intelligence (AI), the apps And the voice Assistants, the road ahead of us is long and winding.

As has been widely reported this week, General Motors laid off more than 1,000 employees in its software and services division, which specialized in infotainment, OnStar and subscriptions. And other new features. An article about GM Financial noticed the continuum of data-driven Offers and specified that among the Conveniences of connected vehicles: “In addition to branded apps specific to your vehicle, GM Financial offers a mobile app that allows you to manage your account, pay your bill or send us messages from anywhere.”

The layoffs come a few months after Public criticism contributed to General Motors’ decision to refrain from sharing data about connected vehicles with brokers.

“As of March 20, OnStar Smart Driver customer data is no longer shared with LexisNexis or Verisk,” GM said. Data, of course, remains a critical component in powering the subscriptionsThe InfotainmentAutodiagnosis And Trade.

In the meantime, In Reference to Data protection and privacy concernsVero and Privacy4Cars have joined forces to provide privacy tools and identity protection services for connected car owners. The new Identi-FI solution includes the deletion of data from connected Cars and identity theft recovery, the companies said in March.

The role of AI in travel and commerce

As is As in so many other industries, artificial intelligence is making headlines in connected cars, and not just in terms of the entertainment available to drivers in the cockpit. As already reported in AugustDC Connected Car has raised €2.1 million ($2.29 million) for its AI-powered remote vehicle diagnostics offering. The funding will be be used to Help DC Connected Car develop AI diagnostic tools for roadside assistance, warranty And repair.

And where GM may refocus/sharpen its networked focus, a variety of Further partnerships And joint efforts And Announcements have shown that the development of the connected car is still in full swing. The movement towards connectivity is gaining momentum, as PYMNTS Intelligence in its “How the world works digitally“” reports that 15% of consumers use voice technology for payments at least weekly; music streaming is used by about half of consumers, traffic-related A third of those surveyed in eleven countries said they prefer apps of this type.

An example of the efforts of automobile manufacturers is Ford and its luxury brand Lincoln are Customers will be able to access apps and services in their vehicles through a new integrated native experience. Drivers will also be able to do so with Apple CarPlay and Android Auto, the company said earlier this year.

The driver can access the system via a touchscreen control panel and buttons on the steering wheel. Drivers can place apps and services wherever they want on the screen and view information such as media, weather, etc. And Fuel consumption via widgets. The launch also includes integrated Google Maps as well as the ability to use Google Assistant or Alexa Built-In as voice assistants.

As for the commercial aspect, Last year, Mercedes-Benz introduced Mercedes pay+, which is based on Visa technology and enables seamless in-car payments via a fingerprint sensor integrated into the vehicle. And in 2021, JP Morgan joined forces with German car manufacturer Volkswagen is taking over about 75% of its Volkswagen Payments SA

In June this year Stellantis announced roll The company produces several software products and connected features for its vehicles worldwide for brands such as Chrysler, Fiat and Peugeot. These include a ChatGPT-powered virtual assistant that can communicate with customers in natural language, and AppMarket, an in-vehicle hub for services and experiences that allows drivers to purchase subscriptions in the vehicle.

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