GM drops Apple CarPlay for EVs as car screen battle intensifies

CarPlay, an app created by Apple Inc. AAPL -0.47% that enables drivers to use their iPhones through their car's display, has become a common feature in millions of cars and trucks sold each year, and it has become a mission-critical feature for some buyers. 

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General Motors Co. GM 1.33% has now decided to ditch the popular app on many of their new electric models, along with a similar app produced by Alphabet Inc.'s GOOG -3.38% Google on Android phones as well. 

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The sudden announcement that General Motors was dropping the apps on its multimedia displays in favor of new software was a surprise to many in the auto industry earlier this month. The company's executives said the software provides drivers with more built-in functionality than anything they can get from their smartphones today.

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The GM strategy, which aligns with the one taken by Tesla Inc. TSLA 1.51% as well as other EV makers, marks the latest development in a battle between automakers and tech companies for control of a vehicle's digital real estate and services, a fight that could potentially yield billions of dollars in future revenue for the two companies. 

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Although the move could prove to be a gamble, it could alienate loyal CarPlay users who use the app exclusively for navigation, listening to music and podcasts, and other tasks, according to dealers and industry analysts. The new GM interface will be based on Google's underlying technology, which means Android users won't be able to drive their vehicle with Android Auto but will still see Google Maps and plenty of familiar features. 

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Over the years, automakers have tried to mimic the look and feel of consumer electronics in the car, but only to fumble with hard-to-use technology that has irked drivers who have been forced to use it. There has been a shift away from carmakers offering a more complex user experience in favor of the simpler ones offered by tech giants, leaving many car executives concerned they may have lost an important point of connection with their customers.

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The head of GM's finance department, Paul Jacobson, said that the new software he has developed for the brand is going to allow drivers to receive a more personalized experience. GM will be customizing the touch-screen interface with a branded look and a number of features that will give it its own identity. 

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In addition to collecting data on the electric charge and tire pressure of the vehicle, the software will also be able to suggest stops and charging locations, such as the best place to pull over and plug in, GM said. As part of the project, Google Maps could also be updated with suggested routes for drivers who wish to use the hands-free Super Cruise-assisted driving system on designated roads, which is only activated on certain roads. 

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CarPlay and Android Auto are not able to provide those functions, according to General Motors.

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“In the end, it is up to us to create that and eventually convince customers that it can be better on a whole,” Mr. Jacobson said.

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It is GM's decision to not use Android Auto on future EVs, according to Google's spokesperson, because it wants GM to be the brand leader in the electric vehicle market, which is why it is expanding its in-car tech using the company's operating system. Apple's spokeswoman declined to comment on the matter.

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Several rival automakers have expressed no intention of removing CarPlay and Android Auto from their vehicles in the near future, according to executives. Even so, they agree that the competition between tech and auto companies for the attention of vehicle owners is growing more and more fierce.

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"There is a strong need for people to be part of our ecosystem," said Mike Colleran, vice president of US marketing and sales at Nissan Motor Co. “And that is where the battle is going to be waged.”

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CarPlay and Android Auto are both projection or mirroring systems. In other words, the smartphone screen is projected onto the car's touchscreen, giving the familiar look of the phone screen onto the car's screen. The programs have become ubiquitous within the last decade: in 2022, Wards Intelligence reports, more than 90% of all new vehicles produced for the U.S. market will be equipped with CarPlay or Android Auto, according to research firm Wards Intelligence. 

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Although some car executives and engineers were apprehensive about ceding their space on the dashboard, they wanted to ease customer frustration with the automakers' own multimedia screens, which many people found glitchy and very difficult to use. Furthermore, the apps were also thought to be safer for drivers as they gave them the ability to control their phones directly from their car's display, as a result of which they were able to limit the time they spent looking away from the road. 

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With the advent of the electric vehicle, car manufacturers now are racing to develop electric vehicles that come equipped with software that can be downloaded from the Internet and updated remotely, just like a smartphone. In order to generate revenue long after the sale of the vehicle, auto executives believe there is an opportunity to offer an expanding menu of digital features and services at higher profit margins than those usual by car manufacturers.

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As a matter of fact, GM has said that its ability to beam new features to the car - adding hands-free lane-change capability, for example, as part of the assisted-driving system Super Cruise - could generate an additional $20 billion to $25 billion in revenue each year by 2030, up from the $2 billion in revenue in 2021.

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The car companies may find it harder to sell these features if drivers always have access to CarPlay or Android Auto in their vehicles, said Anna Buettner, senior analyst at S&P Global Mobility, a research firm with a focus on the automotive industry.

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“What it is all about is owning the customer experience and the data,” she said.

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Mercedes-Benz Group AG announced a few weeks ago that it would like to emphasize the company's own software offerings that are built into its own in-car display systems. "We want to be able to control the interface with our customers, instead of outsourcing it to someone else," a Mercedes spokeswoman said during a press conference.

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In comparison with traditional car companies, Tesla has been years ahead of traditional automakers in terms of its ability to offer new and improved features through downloadable software updates but is one of the few automakers that does not offer Apple CarPlay or Android Auto in its vehicles. Rivian Automotive Inc., a maker of electric trucks, is also bypassing these organizations. 

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Chevrolet Blazer electric SUV is set to go on sale this summer and will be featuring GM's new display-screen software that is expected to debut on the vehicle. With the introduction of CarPlay and Android Auto on its gas- and diesel-powered vehicles, as well as a few hybrid vehicles, the automaker is set to maintain its lead in this segment. 

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It is expected that Apple will introduce a new generation of CarPlay this year that will extend to more dashboard screens and will control certain functions of the vehicle, such as seat heaters, according to a demonstration that the company gave last year. 

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It is believed the plan to reach even deeper into the vehicle's controls was one of the factors that led General Motors to ditch CarPlay on future models, people familiar with the company's thinking have said. 

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Former General Motors executive Phil Abram, who was in charge of rolling out CarPlay and Android Auto on the company's cars nearly a decade ago, believes that GM could promote its own features without removing Apple CarPlay from the market. 

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"I don't see it as an either/or situation," he said. "The idea of intentionally reducing the functionality of your product is generally not a very good strategy if you want to ensure success."