General Motors will generate millions in profit from 4G/LTE

Written by on April 1, 2015 in News with 0 Comments

General Motors headquartersDETROIT (Reuters) – General Motors Co will generate $350 million (236.9 million pounds) in improved profit over the three years to 2018 from its rollout of 4G LTE mobile broadband in its cars and trucks, the No. 1 U.S. automaker’s chief financial officer said on Wednesday.

Chuck Stevens, speaking at a Bank of America Merrill Lynch conference, called GM’s OnStar 4G LTE connection an “untapped, under-appreciated opportunity.”

4G LTE is a wireless connection that allows faster flow of data and developing better in-car technology is critical to automakers like GM to attract younger, tech-savvy buyers.

“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,” Stevens said.

GM has launched 4G LTE in more than 30 of its 2015-model vehicles in North America and expects all 2016 models to have that capability, Stevens said. Future plans call for its rollout in overseas markets.

(Reporting by Ben Klayman)

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