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GM says safety is a reason it's dropping Apple CarPlay, Android Auto

Update: GM sent us a statement as a follow-up to its original comments seen in this post: "We wanted to reach out to clarify that comments about GM's position on phone projection were misrepresented in previous articles and to reinforce our valued partnerships with Apple and Google and each company’s commitment to driver safety. GM's embedded infotainment strategy is driven by the benefits of having a system that allows for greater integration with the larger GM ecosystem and vehicles." The original story can be read in its entirety below.   General Motors announced its intention to remove Apple CarPlay and Android Auto functionality from its upcoming EVs earlier this year, and internet comments sections haven't been kind since. As the first of many EVs to follow – the 2024 Chevrolet Blazer EV – hits the market, GM is expanding on its initial explanations for dropping the tech. Motor Trend spoke with Tim Babbit, GMÂ’s head of product for infotainment, to learn more. Attributed to Babbit, from the story: “They have stability issues that manifest themselves as bad connections, poor rendering, slow responses, and dropped connections. And when CarPlay and Android Auto have issues, drivers pick up their phones again, taking their eyes off the road and totally defeating the purpose of these phone-mirroring programs. Solving those issues can sometimes be beyond the control of the automaker.” Babbit suggests that a world without Apple CarPlay or Android Auto will be a safer one, as folks wonÂ’t be looking to control their infotainment systems via their phones. However, Babbit also tells MT that this theory hasnÂ’t been tested in either the lab or the real world yet. Instead of using a navigation or music-playing app powered through your phone, upcoming GM EVs will use a Google-based infotainment system called “Ultifi” that runs a ton of integrated Google apps. Google Maps will be the native navigation app in the system; youÂ’ll be able to log in to Spotify or other apps to load your music up, and so on. The idea here is that youÂ’ll have all the same apps that were on your phone available but integrated within the infotainment system instead, and you'll be able to use voice controls to control every last bit of it with no need to reach for a phone. That sounds amenable in theory, but how consumers react to the removal of a feature that they know and love now is a risky gamble.

GM raises 2023 guidance on strong sales, higher profits

General Motors beat first-quarter profit estimates and raised its full-year earnings and cash-flow guidance after vehicle demand at the start of the year surpassed expectations. Its shares rose in premarket trading. GM made $2.21 a share in adjusted profit in the first quarter, compared to a consensus forecast of $1.72 a share. Revenue rose 11% to $39.99 billion, it said Tuesday, which was more than the $39.24 billion analysts expected. The stronger results stem from rising sales in the US, even in the face of higher interest rates and inflation. GM executives said demand was strong enough to revise 2023 guidance upward, boosting profit estimates for the year by $500 million to between $11 billion and $13 billion. “We did it with strong production and inventory discipline and consistent pricing,” GM Chief Financial Officer Paul Jacobson said on a call with journalists. “All in all, weÂ’re feeling confident about 2023.” The Detroit automaker raised per-share full-year guidance to between $6.35 and $7.35, up from $6 to $7 a share, and said free cash flow would also increase by $500 million to a range of $5.5 billion to $7.5 billion.  GMÂ’s shares pared a gain of as much as 4.4% before the start of regular trading Tuesday, rising 3.5% to $35.50 as of 6:55 a.m. in New York. The stock was up 1.9% for the year as of the close on Monday.  North American Strength The automakerÂ’s sales were particularly strong in North America, where first-quarter earnings rose before interest and taxes rose to $3.6 billion. Vehicle sales rose 18% to 707,000 in the region. Jacobson said the company originally expected to sell 15 million vehicles in the US this year, slightly less than the 15.5 million annualized rate automakers foresaw in the first quarter. North American demand was enough to offset a weak performance in China, GMÂ’s second-largest market. The automaker continues to struggle in the country, where its vehicle sales fell 25% to 462,000 vehicles in the quarter. Profits from its joint ventures in the market slumped 65% to $83 million.  The market has struggled overall in the wake of Covid-19 restrictions and foreign automakers have had to overcome a growing preference for Chinese brands by competing on price, squeezing profit margins. The situation in China probably wonÂ’t significantly improve until the second half of the year, according to Jacobson. GM remains on target to sell 150,000 electric vehicles this year, the CFO said.

General Motors shaking up its marketing... again

One of the things that dogs the full comeback of General Motors is the instability of its marketing. That part of the automaker got yet another big shakeup today when GM confirmed what I have been tweeting for a few days - strong rumors that the Chevrolet and Cadillac ad accounts are walking to new ad agencies.
Cadillac, GM's luxury brand, is going into review from Fallon Worldwide, Minneapolis and the indications are that Campbell-Ewald, Chevy's old ad shop, will end up with most or all of it. C-E just announced that it was moving from its long-time home in Warren, MI to a new downtown Detroit office next to Ford Field, just blocks from GM.
The other shoe to drop shortly will be the shift of GM's most important brand, Chevy, from Goodby, Silverstein & Partners of San Francisco to McCann-Erickson of Troy, MI. McCann used to be the agency for Buick and GMC, as well as GM's corporate advertising, and has retained some pieces of business over the last few years. Sources have even told us that it was McCann that did a lot of the creative work on Chevy's new ad platform, Find New Roads. (Not to be confused with a former McCann tagline for Saab, "Find Your Own Road.")