GM reports double-digit revenue growth from OnStar, expects trend to continue
Accelerating software and services growth is a key part of GM’s plan to restore North America to historical 8 to 10% EBIT-adjusted margins, according to the automaker’s Q3 2025 letter to shareholders.
GM reported a Q3 revenue of $48.6 billion on Tuesday and an EBIT-adjusted of $3.4 billion, its highest third-quarter market share since 2017.
Deferred revenue from OnStar, Super Cruise, and other software and service businesses has increased by 14% from Q2 to almost $5 billion, the letter says. This includes a base of 11 million OnStar subscribers and more than 500,000 Super Cruise customers.
“We expect robust, double-digit revenue growth from OnStar and Super Cruise through the end of the decade, with gross margins of approximately 70%,” the letter written by GM CEO Mary Barra says.
GM announced a new digital experience (Collision Assistance) that helps customers navigate what to do following a vehicle collision during the Society of Collision Repair Specialists (SCRS) OEM Collision Repair Technology Summit at the 2024 SEMA Show.
John Eck, formerly GM’s Collision Assistance head of product, said that the app follows the OnStar Experience and provides consumers with information, such as GM-certified repair shops. It follows a presentation given by Andrew Rose about OnStar Insurance during the 2023 OEM Summit. OnStar Insurance was later rebranded to GM Insurance. Eck is currently I-Car’s vice president of business development.
Barra’s letter to shareholders says GM is making significant progress on its autonomous vehicle strategy and its next-generation software-defined vehicle platform, which will deliver smarter, more personalized vehicles, reduce complexity, improve stability, and unlock new revenue streams.
A recent J.D. Power study found that consumers are more satisfied with smart technologies, such as smart ignition, climate control, and driver preferences.
The GM letter also discussed a previously-announced $4 billion in capital investments to onshore production plants in Tennessee, Kansas, and Michigan over the next two years.
“Once these investments come online, we plan to produce more than 2 million vehicles per year in the United States,” the letter says. “We are also investing close to $1 billion to build a new generation of advanced, fuel-efficient V8 engines in New York. Importantly, we are maintaining our capital discipline while adding this production and creating new jobs.”
Like many automakers, GM noted it will be assessing its EV plan with the evolving regulatory framework and the end of federal consumer incentives.
“By acting swiftly and decisively to address overcapacity, we expect to reduce EV losses in 2026 and beyond,” the letter says. “As I have said, electric vehicles remain our North Star, and I am proud of the way our portfolio of Cadillac, Chevrolet, and GMC EVs have connected with customers. We believe their performance will improve, even in a smaller market. At the same time, we will continue to invest in new battery chemistries, form factors, and architectural improvements to drive profitability.”
Images
Photo courtesy of GM.