Automotive
General Motors is finding a more profitable way to make money from its vehicles long after they leave the dealership. For decades, the business model was simple: build a car, sell it, and earn whatever margin the market allowed. Now, with connected services, driver-assistance subscriptions, and over-the-air software features, GM has a recurring revenue stream that can keep generating income throughout a vehicle’s life.
The appeal is easy to understand from GM’s side of the ledger. The company says its software and connected-services business keeps roughly 70 cents of every $1 it brings in, while traditional vehicle sales often deliver much thinner margins. That is a massive difference, and it explains why automakers are so eager to build subscription revenue around vehicles that are increasingly controlled by software. A truck, SUV, or EV may only be sold once, but the digital services inside it can be sold month after month.
OnStar remains the foundation of GM’s subscription strategy, while Super Cruise has become one of its most visible growth products. GM expects to finish 2026 with close to 13 million OnStar subscribers and more than 850,000 Super Cruise subscribers, giving the automaker a large base of customers who may continue paying after the original purchase or trial period. For GM, that kind of predictable monthly revenue is much more stable than relying only on new-vehicle sales cycles, incentives, and inventory swings.
The tricky part is how customers feel about it. Many drivers are fine paying for services that require ongoing support, such as connected navigation, crash response, data connectivity, or hands-free driver-assistance updates. The frustration starts when automakers try to charge recurring fees for hardware that is already built into the vehicle. That is where consumers begin to see subscriptions less as convenience and more as nickel-and-diming, especially when new cars already cost more than ever.
GM is not alone in chasing this model. Tesla, Ford, Mercedes-Benz, Audi, and BMW have all experimented with paid software features, digital upgrades, or subscription-based services. Some ideas have been accepted, while others have created backlash. BMW’s heated-seat subscription controversy remains the warning sign for the entire industry, and proposed legislation in places like New York shows that lawmakers may eventually step in if automakers go too far with hardware-based paywalls.
For now, GM’s software business looks like one of its most promising profit engines, especially as vehicles become more connected and advanced driver-assistance systems improve. The challenge will be drawing the line between valuable digital services and features customers believe should be included with the vehicle they already bought. If GM gets that balance right, subscriptions could become a major strength. If it gets greedy, it risks turning loyal owners into frustrated ones.
Lloyd Tobias is a seasoned automotive journalist and passionate enthusiast with over 15 years of experience immersed in the world of cars. Whether it’s exploring the latest advancements in automotive technology or keeping a close pulse on breaking industry news, Lloyd brings a sharp perspective and a deep appreciation for all things automotive. His writing blends technical insight with real-world enthusiasm, making his contributions both informative and engaging for readers who share his love for the drive. When he’s not behind the keyboard or under the hood, Lloyd enjoys test driving the newest models and staying ahead of the curve in an ever-evolving automotive landscape.
