GM to include dealers in vehicle software sales

General Motors will include its franchised dealers — and compensate them in some form — as part of its strategy around future software sales after a vehicle purchase, executives said.

GM is developing its approach toward the sale of vehicle software and services in conjunction with its dealer councils and boards, GM North America President Steve Carlisle said in an interview at the NADA Show. The automaker is drawing on its experience with its OnStar in-vehicle safety and security service.

Carlisle said GM is working on a financial aspect to the relationship with dealers, possibly as a commission or some other structure, but added that he would not call it revenue sharing.

"Whatever the product is, the dealer channel is a very effective sales and marketing channel. So that's the spirit in which we enter into it," Carlisle said.

He added: "Given that it is a very effective sales and marketing channel, then, obviously, there's a recognition of that when it comes to the commercial terms that are associated."

GM has said it could generate as much as $25 billion in revenue from software and services by 2030. Not every consumer will want to purchase or activate every available feature at the time of purchase, Carlisle said.

"We interact with consumers through the lifecycle of the vehicle, including in the service lane," he said. "So that's kind of what we're working on, is what's the best way to go to market with these as we roll them out? But very much in collaboration with our dealer partners."

Leaders of the Chevrolet, Buick-GMC and Cadillac dealer councils told Automotive News ahead of the NADA Show that GM has told dealers they will play a role in the process.

"GM believes that we are absolutely part of whatever that revenue is, and subscription base is, moving forward," Bo Mandal, chairman of the Buick-GMC National Dealer Council, said in a recent interview.