The largest US automaker and the third biggest in the world, General Motors, is set to gain around $350 million in improved profit during the upcoming three years from introducing 4G LTE mobile broadband services in its cars and trucks.
The figures come courtesy of the No. 1 US automaker’s chief financial officer, Chuck Stevens, who made the comments during a Bank of America Merrill Lynch conference – saying that GM’s OnStar 4G LTE connection capabilities currently are an “untapped, under-appreciated opportunity.” The 4G LTE wireless connections have started to appear in cars in recent models, allowing the user to achieve a faster data flow and serving as a crucial selling point for the younger, tech-savvy customers. It would also serve as the underlying basis for better in-car technology – which gains more proponents than ever in the fast moving auto industry.
“Based on our plans today, which are still in the early stages of really taking advantage of this technology, we expect to see $350 million of profit improvement between now and 2018 specific to 4G LTE, and in our view, that’s just the beginning,” commented Stevens. General Motors has already introduced the 4G LTE wireless connection in at least 30 models for the 2015 model year and wants to expand it towards all of its 2016 model year models. Upcoming strategy moves also include its rollout towards overseas markets. Stevens also discussed about the company’s close-term earning forecasts, reaffirming the previous goals of improved both the operating profit and earnings margins across all regions in 2015, with a 10 percent operating margin and a positive financial result in Europe next year.