General Motors expands eyes-off driving push to pickups and SUVs

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GM expands autonomous driving

Highlights

GM plans to extend its 'eyes-off' autonomous highway driving technology beyond the Cadillac Escalade IQ to pickups and large SUVs, though no launch date is specified.
Executives announced a new in-house software architecture with central compute hardware to enable remote updates and paid digital features, aiming for higher profit margins versus traditional vehicle sales.
UBS projects GM's digital revenue will increase from $3.2 billion in 2024 to $9.6 billion by 2036, as GM accelerates connected-vehicle capabilities to compete with Tesla, Rivian, and Chinese automakers.

Autonomous driving expansion and software plan

As reported by Reuters, GM says it plans to extend "eyes-off" autonomous highway driving beyond the Cadillac Escalade IQ to pickup trucks and other large SUVs, although it does not specify a launch timeline.

The company said last year it would offer autonomous highway driving in 2028 on the electric Escalade IQ. On Wednesday, executives outlined a broader strategy in New York that links automated driving to a new in-house software architecture designed to support remote updates and other paid digital features.

Sterling Anderson, GM's chief product officer, said the automaker is building "an autonomous system that operates safely on highways that actually gives you your time back." He added that GM ultimately plans to expand the service beyond highways.

GM's approach goes beyond current assisted-driving systems such as Tesla's Full Self-Driving (Supervised) and GM's own Super Cruise, which can manage steering and speed in certain conditions but still require the driver to stay attentive. Eyes-off systems remain rare in the industry and are usually restricted to limited areas and low-speed traffic scenarios, as with some Mercedes-Benz applications.

A central computer is set to act as the vehicle's brain in future GM models, enabling smartphone-like remote software updates. Anderson said GM is developing this "central compute" model in-house, a shift aimed at giving the company tighter control over vehicle functionality and over-the-air improvements.

Revenue opportunity and competitive pressure

GM is betting that drivers will pay for useful digital features, helping the company lift returns beyond the roughly 10% average profit margins typically earned on vehicle sales. According to PwC, software-related services can produce margins of 30% to 40%, making them an attractive growth area for automakers facing heavy technology spending.

In a report last month, UBS estimated GM's digital revenue will rise to $9.6 billion by 2036 from $3.2 billion this year, and described the company's digital capabilities as an underappreciated opportunity. Ed Nightingale, GM's vice president of digital products, said the company is focused on offering features that customers find compelling rather than charging for functions that were previously part of the standard driving experience.

Industry observers say the software push is increasingly important as Tesla, Rivian and Chinese automakers move faster with connected-vehicle systems and remote updates. Sam Abuelsamid, vice president of market research at Telemetry, said GM's effort to turn vehicles into rolling, updateable computers is critical if it wants to remain competitive with Chinese brands and EV-focused rivals.

GM also says it will introduce an AI assistant on the Cadillac Lyriq in the coming months, underscoring how the company is pairing automated driving with a wider digital product strategy.

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