Flip through the latest issue of Gulf Weekly.
Dan Akerson is pushing General Motors Co to build cars that the US automaker’s top executive hopes will attract a target demographic: his grandchildren.
“I have grandkids that have only grown up in a world with smartphones,” Mr Akerson, a former telecommunications executive, said on a conference call to discuss GM’s quarterly results.
An emerging generation of tech-savvy consumers has changed the way GM and its rivals approach in-car entertainment and navigation systems. If done well, these systems can draw new buyers and allow automakers to tap new sources of revenue and boost profit margins.
So far, many customers and car reviewers have complained that these so-called infotainment systems are clunky and harder to use than the phones in their pockets. Automakers have struggled to find ways to update in-car software so it does not appear out-dated over the course of the car’s life.
GM says it will be able to make these updates more quickly starting with its 2015 line-up. In mid-2014, it will start selling internet-capable vehicles that GM says allow passengers in the backseat to watch streaming video.
This feature also gives GM the chance to sell advertising within the car itself. This potentially gives advertisers a chance to promote their brands to a captive audience.
