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OEMs: Connected Cars Could Increase Service Revenues for Dealers

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March 29, 2018—According to a recent ET Auto report, analysts are taking note of the vast amount of data that U.S. OEMs could soon own as more vehicles become connected via the Internet, resulting in regularly recurring service revenues.

Manufacturers like Ford and General Motors could charge a subscription fee for customers interested in accessing real-time, crowd-soured HD maps maintained by a network of millions of vehicles.

Analysts suggest automakers may soon be seen as “landlords” of mobile real estate, whose data could appeal to logistics firms and online retailers interested in opportunities that benefit them. Connected vehicles could, as a result, act as a large supercomputing platform for companies such as GM, which could generate some $8 billion in annual revenue if it were to charge an annual fee of $99 per vehicle.

Service revenues could also mean greater gross margins for automakers, analysts told ET Auto.

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