general motors
General Motors logo (Reuters Image)

American multinational automobile manufacturer, General Motors Co., has announced to stop sales of its commercial vehicle, parts and telematics services in North America. The company has announced a new brand umbrella, GM Envolve, to provide all the above-mentioned. GM Evolve will compete with Ford Motor Co’s Ford Pro unit and others for revenue from business vehicle fleets.

In the press meeting, GM executives stressed that this reorganization aims to ease commercial fleet customers’ process to negotiate electric and combustion vehicle purchases. It will also help the customers to sign up for after-sales services and software offerings by the company.

According to Steve Hill, GM’s vice president for commercial growth strategies, in the past, commercial customers would receive visits from representatives representing various divisions of GM, including its traditional vehicle brands, the BrightDrop delivery van unit, the energy services operation, and the OnStar telematics unit.

“We were basically stepping on each other,” he said during a briefing for media. Hill said the restructuring is not aimed at reducing staff.

GM, Ford, and Stellantis NV are engaged in a competitive struggle to secure a more significant portion of the commercial fleet market.

In May 2021, Ford established its Ford Pro commercial fleet unit with the goal of boosting its annual revenue to USD 45 billion by 2025, utilizing software-enabled services as a driving force. While Ford and GM claim to be leaders in commercial fleet sales, they employ varying definitions to define their market dominance.

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