# GM Is Quietly Transitioning to a Subscription Model The automotive giant is boosting profitability through software and subscription services. - **Source:** [Slashdot](https://brifing.si/source/0f34d58e-1ccd-45a6-ab82-2de4065dc7ad) - **Published:** 2026-07-22 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/a9677458-bed5-4395-ad50-9bc63197494d ## New Revenue Model General Motors is focusing on generating recurring revenue through software subscriptions like OnStar and Super Cruise after vehicle sales. These services significantly enhance the company's profitability, offering high margins compared to traditional automotive sales. ## OnStar's Success OnStar service generated $800 million in revenue for GM in the second quarter. The company aims to add 1 million new subscribers this year, bringing the total close to 13 million. The subscription model is also proving effective in building customer loyalty. ## Super Cruise Growth Super Cruise revenue grew by 70% year-over-year. After the free three-year period, 30-40% of eligible users renew their subscriptions, indicating strong customer satisfaction with the service's value. ## Importance of Software GM highlights that as vehicles become more software-defined, they can introduce new digital experiences through updates and optional services. This approach enhances customer satisfaction while reducing costs compared to hardware changes. ## Profitability Boost GM retains about 70 cents of every dollar earned from its software business as profit. This is significantly higher than the 4-10 cents profit per dollar from traditional vehicle sales, helping the company achieve a less cyclical business structure. ## Future Vision GM CEO Mary Barra emphasizes that software and subscription services are key levers for the company's growth. This strategy is emerging as a transformative model in the automotive industry, potentially setting a benchmark for competitors. ## Sources covering this story - https://tech.slashdot.org/story/26/07/22/2010225/gm-is-quietly-becoming-a-subscriptions-company?utm_source=rss1.0mainlinkanon&utm_medium=feed — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._