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GM Says High-Speed Cellular Service will Generate $350 Million Profit
General Motors Co. expects its introduction of its OnStar-based 4G LTE broadband connectivity service will increase the company's profits by $350 million between now and 2018.
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General Motors Co. expects its introduction of its OnStar-based 4G LTE broadband connectivity service will increase the company's profits by $350 million between now and 2018.
Chief Financial Officer Chuck Stevens tells an investor conference the high-speed feature is an "under-appreciated opportunity" with significant growth potential. The capability creates a wi-fi hotspot in and around the vehicle that can be used by as many as seven laptops, smartphones, tables or video game consoles.
Nearly three dozen of GM's 2015 models offer 4G LTE connectivity. Stevens says the service will be available in all North American models in 2016 and will then spread to major overseas markets.
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