💿 Defining Software Defined

The Gist

Carmakers are scrambling to sell software like it’s the new oil. GM’s Super Cruise wants to rake in $2B a year from hands-free driving subscriptions. VW & Rivian are teaming up in a $5.8B tech bromance to develop next-gen vehicle software. Lucid dreams of becoming the Intel Inside of EVs. Toyota & NTT are throwing $3.3B at AI to predict accidents before they happen. Volkswagen is hopping on Dassault’s engineering software. Bottom line? Car brands want to be tech companies, and dealers need to adapt to a world where cars aren’t just vehicles—they’re software platforms.

Sources:

• Reuters - After robotaxi failure, GM software bet turns to driver assistance

• The Verge - VW and Rivian officially kick off $5.8 billion joint venture, announce leadership

• InsideEVs - Lucid CEO Wants Business To Be 20-Percent Selling Cars, 80-Percent Licensing

• Reuters - Dassault Systemes says Volkswagen selects its 3DEXPERIENCE platform

• Barons - An Auto Supplier Is Breaking Up. It’s the Latest in a Hot Wall Street Trend.

• Nikkei Asia - Toyota, NTT to make $3.3 bln R&D investment for AI self-driving

Who Needs Cars When You Can Sell Code?

Carmakers used to just sell cars. Now, they’re racing to sell software, too—because if their models vanish tomorrow, their software might just keep rolling along in someone else’s vehicle. The industry’s biggest players are fighting for their share of the software pie, aiming to be more like Apple and less like, well, Blockbuster.

Let’s break it down before you start questioning reality.

GM: "We Swear This Will Make Money"

• Super Cruise is GM’s way of turning driver assistance into dollars. The goal? $2 billion in annual revenue within five years. Because why sweat steel and rubber when you can just beam updates over the air?

  • Available on 20 models, mostly fancy Cadillacs and SUVs.

  • Free for three years, then it’s pay up time: $25/month or $250/year.

  • So far, only 20% of eligible customers renew. GM swears this will improve.

VW + Rivian: A $5.8B Tech Bromance

• Last year, VW and Rivian made it Facebook Official. Now, their joint venture is live, aiming to develop the next-gen electrical architecture and vehicle software.

  • First joint vehicle expected in 2027.

  • VW gets Rivian’s software-first mindset.

  • Rivian gets a financial lifeline before their cash burn hits "disaster movie" levels.

Lucid: "We’re Not Just a Car Company (Trust Us)"

• CEO Peter Rawlinson wants Lucid to be the Intel Inside of EVs. His vision? "Just as there’s an Intel in your laptop, there’s a Lucid in a Honda or Toyota."

  • Already supplying battery tech to Formula E.

  • Signed a $450M deal with Aston Martin for motors and charging tech.

  • Actively chasing other licensing agreements—because building cars is expensive.

Toyota & NTT: Let’s Throw $3.3B at AI

• The goal? Self-driving software that can predict accidents before they happen (because reacting is for amateurs).

  • Target launch: 2028.

  • Will be available to other automakers, because Toyota never met a revenue stream it didn’t like.

Dassault Systèmes: Engineering Everything

• Volkswagen is hopping on Dassault’s 3DEXPERIENCE platform, just like BMW did.

  • This consolidates engineering and manufacturing workflows.

  • Translation: "We’re tired of our tech being a tangled mess."

What This Means for Dealers

• Recurring Revenue: Subscriptions aren’t just for Netflix anymore.

• Upsell Opportunities: Want better navigation or hands-free driving? There’s a software package for that.

• Service Evolution: Forget wrenching—get ready for software troubleshooting.

The Bigger Picture: Automakers Want to Be Tech Companies

The industry is at a crossroads. Some want to be tech firms that happen to sell cars. Others just want to make great vehicles and buy the software they need. Either way, the race is on.

For dealers, the message is clear: software is reshaping the business, but customers still need real experts to guide them. And that’s where you come in.

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