GM's VP hire from Apple another step for software development

As General Motors invests heavily in software, the automaker will get a boost from the Silicon Valley tech world.

Mike Abbott, who led cloud services at Apple Inc., will become GM's executive vice president of software beginning May 22, the automaker said last week. He will report to CEO Mary Barra and oversee a reorganized software team focused on information and digital technology, software-defined vehicle and operating systems, and digital business.

Abbott, 50, joins GM at a time of digital transformation at the automaker. GM continues work on its Ultifi software platform and the development of software-defined vehicles, which will be able to offer apps and other features to consumers through over-the-air updates. GM also expects software and subscription services to be a key future revenue driver, to the tune of $20 billion to $25 billion by 2030.

At the same time, GM said its upcoming electric vehicles would not offer Apple CarPlay or Android Auto smartphone connectivity, as it instead plans to implement its own embedded software solution, developed with Google.

"We have entered the next phase of our technology driven transformation focused on rapidly scaling new EV models and our Ultifi software platform," Barra said in a statement. "Mike's experience as a founder and entrepreneur coupled with his proven track record creating and delivering some of the market's most compelling software-defined solutions for consumers and companies make him an excellent fit at GM."

Abbott has been vice president of engineering for Apple's cloud services team, which developed the infrastructure for iCloud and iMessage. He previously was general partner at venture capital fund Kleiner Perkins Caufield & Byers, where he worked on investments around mobile and cloud computing, and he had roles at Twitter, Palm and Microsoft, GM said. He also was a visiting scholar at the Stanford Artificial Intelligence Lab at Stanford University, researching computer vision.

Bringing in someone with outside technology expertise makes sense for GM, which is focused on building consumer-facing platforms that are fun and easy to use, said David Whiston, U.S. autos equity analyst with Morningstar Research Services.

That will be particularly important if GM eventually wants people to pay for software and services, said Whiston.

"You look at the recent GM announcement to stop using Apple CarPlay. The reason they're doing that is because they want to have a GM tech ecosystem that could be monetized for GM and not for a tech company like Apple, so you need outstanding software people to be able to pull that off," Whiston said.

"People may be angry at GM now for doing it, but if GM comes up with something that ends up being great and makes people not want Apple CarPlay, then it'll prove to be the right move," he said. "Hiring Mike is a key step in trying to make that happen."

GM said Abbott was not available for an interview last week. In GM's statement, Abbott called himself "a product person at heart."

"As the transformation of transportation quickly accelerates, I know that software is the catalyst for redefining experiences for consumers and enterprises like never before," Abbott said. "GM is playing a pivotal role in this shift and I'm excited to join the team and bring my experience in software to bear to not only take advantage of the massive opportunities that lay ahead for the company but to help change the world."

Abbott will oversee teams led by Scott Miller, vice president of software defined vehicle and operating system; Stacy Lynett, vice president of information and digital technology; and Edward Kummer, chief digital officer, GM said.