GM Gains Lift From Mobile Apps

General Motors Co.'s efforts to distribute Apple Inc.'s in-car software faster than its competitors may be paying off for the Detroit auto maker, some dealers say.

CarPlay, Apple's software that displays an iPhone's screen on a car dashboard and gives access to applications, including Apple's mapping application, became available on 27 GM models this fall, far more than any other auto company.

Some auto makers, including Honda Motor Co. and Volkswagen AG, offer the software on a few models, and virtually every car company plans to introduce it and competing software for Alphabet Inc.'s Android operating system in coming years.

"We've had people coming in because they've heard about it, and once they see it, they really do like it because it mirrors the look and feel of the devices they use," said Chris Hemmersmeier, chief executive of a chain of Jerry Seiner Dealerships in Salt Lake City, Utah. "It's helping to close the deal once they see it."

GM officials say they have anecdotal evidence of an impact, and agree the offering has been well-received. Phil Abram, executive director of connectivity an infotainment at GM, said customers have been asking for the feature for years and the company plans to expand it to as many more models as soon as possible.

Other car makers have been more deliberate about the roll out of the software. GM's chief rival, Toyota Motor Corp., hasn't committed to installing CarPlay or Android Auto in its vehicles, soldiering on with its own mobile-app software.

GM's U.S. sales surged in October and November, buoyed by a strong market and demand for sport-utility vehicles. But it is hard to pinpoint a direct effect caused by CarPlay.

Gavin McGrath, the general manager of Pat McGrath Chevyland in Cedar Rapids, Iowa, has been advertising CarPlay availability and it has drawn in customers.

"It certainly has helped us," he said. "The biggest thing that it has brought to the retail front is…navigation is going to cost $900 [to] $1,000 [as an option]. Here you have Apple CarPlay, and boom your nav is there. That has already helped us close deals." CarPlay is a free option loaded into cars with a screen large enough to display the applications.

Mr. McGrath and Mr. Hemmersmeier said the software will affect purchases of vehicles that have built-in navigation systems. Mr. McGrath said he is already considering a change in ordering vehicles with the systems from the manufacturer.

(END) Dow Jones Newswires

December 11, 2015 15:25 ET (20:25 GMT)

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