At the BofA Global Automotive Summit, General Motors (GM) emphasized a strategic shift towards software and digital services, particularly through its OnStar platform, which currently serves around 12 million users globally. The company projects software and services revenues to increase by approximately $400 million by 2026, with deferred revenues expected to reach $7.5 billion, reflecting a 40% year-over-year growth.
Despite these optimistic forecasts, GM faces significant near-term challenges, including $7.6 billion in electric vehicle (EV) related charges for 2025 and anticipated gross tariff costs of $3-$4 billion in 2026. Rising commodity prices are projected to add $1-$1.5 billion in headwinds, complicating the company’s operational outlook. Over the past six months, GM shares have risen 25%, outperforming competitors Stellantis and Ford.
