In the past, no one would have confused General Motors Company (NYSE:GM) for a hip automaker, but now the company is making a big bet on technology to increase its “coolness” factor. GM recently announced plans to team up with AT&T Inc. (NYSE:T) to add 4G LTE connectivity into most models available in 2014.
What does this mean for consumers? Come 2014, you’ll be able to do things like stream a Netflix, Inc. (NASDAQ:NFLX) movie in the back seat, pull real-time traffic information directly to navigation systems, and use mobile devices through the vehicle’s Wi-Fi hotspots.
In the following video, analyst Brendan Byrnes further breaks down what these features mean for consumers, and how GM investors should view this move.
A transcript follows the video.
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Andrew Tonner: Hi, Fools. Andrew Tonner here. I’m joined today by our Motley Fool analyst Brendan Byrnes.
Brendan, one of the emerging trends you’ve seen driving the auto market is increased integration of technology. We saw an example of that with GM teaming up with AT&T. When you look at this deal, what strikes you?
Brendan Byrnes: I think GM is really doing a good job trying to get out ahead of the curve here. They’re going to put 4G connectivity in most of their cars, they say by 2014. What you’ll be able to do is stream videos in the back seat, have hot spots to connect different mobile devices within the car.
I think this is definitely a good idea for GM overall, especially when you look toward a younger generation of buyers coming up. Ford Motor Company (NYSE:F), of course, has teamed up with Microsoft Corporation (NASDAQ:MSFT) with their SYNC system.
I like General Motors Company (NYSE:GM)’s strategy better here — 4G connectivity obviously is the future, about 10 times as fast as 3G, and they give you the option to team up multiple devices in these cars. As I mentioned, younger buyers are a key.