GM's Software Subscriptions Generate $2 Billion in 9 Months with 70% Margin

General Motors is accelerating its transformation toward software and services, with its in-vehicle subscription business delivering strong results. Over the past nine months, this segment has generated $2 billion in revenue, and customers have committed to future subscriptions totaling $5 billion. Among these offerings, the OnStar safety system now serves 11 million users—a 34% year-over-year increase—while approximately 500,000 users pay for the Super Cruise driver-assistance system. Although software revenue still represents a small portion of the company’s total revenue (which reached $45.29 billion last quarter), it boasts a profit margin of 70%, far exceeding that of traditional vehicle sales, which yield only 4 to 10 cents in profit per dollar of revenue. GM stated it will continue enhancing vehicle capabilities through software updates without relying on hardware upgrades. Boosted by this positive news, the company’s stock surged as much as 8.8% following the earnings announcement.