Will Millennials Love a Connected Car?
New car buyers want tech-savvy vehicles, says GM's John McFarland.
Automakers are banking on the connected car.
The connected car was a big topic at Brand Innovators’ Mobile Summit in November. I met with General Motors’ John McFarland at Engadget Expand, and interviewed him via email to discuss this emerging trend. McFarland is director of global insights and brand strategy for GM's Global Connected Consumer. He is responsible for developing and implementing strategy for the OnStar brand and infotainment systems including Chevrolet MyLink, GMC and Buick IntelliLink and Cadillac CUE.
Please tell me about the connected car.
The connected car provides a better overall ownership and driving experience. A connected vehicle should allow you to continually update, improve and customize your driving experience over time.
Will the connected car draw back the millennials who don't feel the same need for automobiles as earlier generations?
A major factor for millennials when buying a car is technology. GM views technology as a way to get the attention of a new generation of car buyers -- to get them to re-engage -- even if it’s just to take a look and start the conversation. We’ve found that time and time again, when we engage with millennials and learn from them, that doing in-vehicle technology right is critical. But you still have to create an outstanding car all around. I truly believe a brand that is able to drive an emotional connection with millennials will win the long run. When you look at millennials, value, style and fuel economy are all important factors for them.
What are the most popular apps right now? What are apps we can expect in the future?
Right now, the applications we’re focused on are apps that people are familiar with and that make their time in the vehicle more enjoyable. For example, we’re working with Glympse on integrating their app that allows drivers to send controlled location data to a chosen recipient in order for that person to see real-time information on that driver’s commute. We also work with well-known apps like iHeart Radio and TuneIn Radio, so people have the streaming music content they want in the car. And the Weather Channel, so that people can get real-time and safe access to weather information for either their current location or their desired destination. Our approach is that we want to come to market with apps that add value, starting out with well-known partners.
But that’s only the beginning. We’re also working with a number of developers on creating new apps that could serve a specific vehicle purpose. These are apps that may utilize vehicle information for a unique driver need, like teaching you to be a more fuel-efficient driver for example.
How is GM's connected car strategy unique?
At GM, we don’t view connectivity as a one-size-fits-all solution. We want to give drivers a holistically connected ownership experience, and to do that we can’t limit ourselves to only one type of solution.
Customers have a broad range of needs, and because of that we have a three pronged approach for meeting those needs:
- Delivering best infotainment and built-in experience within the vehicle, that’s easy and safe to use. OnStar 4G LTE and AppShop are examples of a built-in solution.
- The seamless and easy integration of brought-in devices. An example of this is the work we’ve done with Apple to be the first automaker to integrate Siri Eyes Free into the vehicle.
- OnStar, our telematics brand for the last 17 years, which not only provides robust safety and security services, but also enables customers to interact with the vehicle when they’re not with it, like with the OnStar RemotetLink Mobile App.
What connectivity options can customers expect in the next year?
Starting this summer we will begin to rollout vehicles in the U.S. and Canada that are connected with OnStar 4G LTE. We will be starting this rollout with Chevrolet vehicles including the Corvette, Impala, Malibu, Volt, Equinox, Silverado, Silverado HD, Spark, Spark EV and Trax. These vehicles will come with a built-in Wi-Fi hotspot that can connect up to seven different devices. It also upgrades OnStar from a 2G connection to a 4G LTE connection. This will provide drivers with a reliable and constant connection to their vehicle.
What advantages does a built-in connection offer?
The easiest way to think about it is with a brought-in connection, the second you walk away from the vehicle, it’s not connected anymore, it’s basically a brick. When you have a built-in connection, you always have access to that car. Like with OnStar RemoteLink app for example, you can check on your vehicle’s diagnostic information or even send a remote start command from any distance. In the future, your car may be able to notify you about certain conditions that may affect your commute, or it could sync up with your schedule to provide more personalized services. Another advantage of a built-in connection is that you don’t have to rely on a brought-in mobile device’s battery or signal strength.
What are some other trends in the auto industry?
We know that most other automakers are beginning to investigate connected car possibilities, as this is a space that no automotive contender can choose to ignore. We’ve been offering a connected vehicle for the past 17 years through OnStar, and we feel this has provided us with a great insight and a well-established ecosystem for delivering on our promise to our customers.
But we also understand that customers’ expectations have and will continue to increase as time goes on. They expect to be able to access the apps and connected services that are most relevant to them, wherever they are. And they expect this to be provided in an intuitive and easy-to-use manner.
We know that infotainment and technology weighs heavily in the customer’s buying-decision process. In-vehicle technology is one of the top deciding factors customers consider when buying a new car. You do see that it varies across different segments and demographics. But it’s not necessarily the technology itself that is the big driver, it’s what the technology enables our customers to do. If the technology provides a safer driving experience, like with OnStar, people see the value. Or with built-in navigation systems, people naturally see the convenience of that -- it’s about showing the tangible benefits that are enabled through technologies.
Connected vehicles provide unique opportunities for auto makers to take on-going relationships with drivers to a whole new level.
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