The Force Awakens: An Unlikely Leader of the Automotive Revolution?

For the past few years,Tesla has been the definitive poster child for automotive innovation. But lately, there is reason to believe that while Tesla may have started the revolution, the real winners might just be the same companies that have dominated the automotive landscape for decades and more. And the one best poised to lead the way may be General Motors!

From a business perspective, the winners of the revolution will be the ones who are first to deliver zero emission, fully autonomous transportation to the masses. But they will also need to be be the ones that are perceived as innovative, trustworthy leading edge brands.

The Business Case

For years, Elon Musk has been promising the $35,000, 200 mile range Model 3. Rumors suggest that he is getting ready to reveal it early this year. But Tesla has a history of revealing concepts up to 3 years before they are actually available in market. So it is unlikely that we will see a production vehicle until at least 2018.

And while everyone has been waiting for the Model 3, at this year's Consumer Electronics Show, General Motors revealed the Chevy Bolt ...an all electric, connected car with over 200 miles of range, and a starting price before government incentives of $37,500. It will be available for purchase before the end of this year, with transaction prices likely to be in the low $30,000's!

That's right, Chevrolet, the brand known for gas guzzling pickups and General Motors, the company that struggled with bankruptcy and massive recalls just a few short years ago is beating Tesla to market!

But just because GM and Chevrolet have won this battle, are they really equipped to lead the revolution? It seems much more likely than ever before. 

Consider the fact that General Motors has made a major investment in ride sharing company, Lyft. And last week, it announced the creation of a new, car sharing brand, Maven. 

Of course, General Motors is not the only car company experimenting with other mobility models. And while Lyft and Maven are steps in the right direction, car sharing as we know it today is still not the end game. Uber and Lyft rely on a peer to peer business model, with drivers responsible for car ownership and maintenance. 

But in a world of fully autonomous ride sharing, who will own the cars? Where will they be stored? Who will ensure that they are clean, adequately charged, and properly maintained? 

And while most conversations about autonomous vehicles center on urban transportation, Americans like their road trips. How will autonomous vehicles travel across the vast expanses between US cities?

A Secret Weapon?
Could the much derided dealer franchise system be the solution? After all, they have the real estate for storing vehicles not in use. They have floor plans to finance large inventories. They have service bays for maintenance, cleaning and charging. So repurposed dealerships could very well be General Motors real secret weapon. The fact is that ~25% of the 15,000 + car dealerships in the US are General Motors franchises...more than any other manufacturer. And these dealerships are not just in the large cities, but in virtually every small town in the US, in locations that can facilitate autonomous road trips.

The Brand Case

So now, the question remains, can General Motors be trusted? Can General Motors be seen as delivering products that are as innovative and desirable as Tesla, or even another likely competitor, Apple?  

They may have a good chance if they continue to use marketing and PR to leverage two of their biggest assets, Mary Barra and Chevrolet. Mary Barra has put a human face on General Motors...something that helps technology companies seem approachable and trustworthy. Her performance at CES left no doubt for her commitment to the future. And one might argue that her presentation skills are vastly better than Elon Musk's!

Chevrolet, at its core is a great American brand that suffered some setbacks in the dark days of General Motors. But Chevrolet today is a surprisingly innovative brand that's making great product again. Even its entry level products are sporting cutting edge safety technology...a precursor to autonomous driving. And this is why their 'focus group' advertising campaign is urging car buyers to rethink and rediscover the brand. In addition, as part of its partnership with Lyft, GM will allow drivers access to Bolts, raising Chevrolet's profile as an innovator.

So is General Motors a slam dunk for leading the revolution? No one is at this point. But even Elon Musk must be paying attention to this reborn competitor.

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