With a history stretching back more than a century, the GM parts business and its branded products, such as ACDelco, have long been synonymous with General Motors and its dealerships around the world.
Now, GM’s created a new way to get those parts easier through an online portal.
“Making our parts available online marks another step in transforming the ACDelco and GM Genuine Parts brands,” said GM Customer Care and Aftersales Global Vice President John Roth, in a statement.
“Our premium parts are engineered with exceptional quality to provide assurance to our customers. The launch of this trusted online sales channel extends that peace of mind to the parts-buying experience.”
Effort part of initiative to raise revenue
The initiative is part of GM’s efforts to build new streams of revenue, which Chairman and CEO Mary Barra and other executives outlined for investors back in October.
GM also is extending its subscription services platform to support new recurring revenue opportunities with forecasts to grow that business. The effort is expected to raise up to $20 billion to $25 billion in annual software and services revenue opportunities from the multiple platforms, which have extended to insurance and used vehicles.
The company forecasts that online sales of parts and accessories will make up a $40 billion total addressable market by 2030, and it anticipates significant revenue growth from its expanded e-commerce effort. GM launched online accessory sales in 2015 and sells its 5,000 accessory products online.
The auto company isn’t alone in these efforts and the plans to expand them. Recently Stellantis CEO Carlos Tavares noted the company is taking in $464 million annually from subscriptions and software services and expects that to jump to $23.2 billion by 2030.
Selling parts digitally
As part of the effort to grow its digital revenue, GM is setting up a new online parts marketplace, making its catalog of 45,000 repair and maintenance parts more convenient for Chevrolet, GMC, Buick and Cadillac owners, according to the automaker.
It uses GM’s investment in digital commerce, which combines the convenient aspects of online shopping and physical retail into one experience. Customers can choose home delivery or pick up their order at one of more than 800 participating dealers, where staff is available to answer questions.
“We are placing software and digital services at the center of every part of our business,” said GM Chief Digital Officer Edward Kummer. “The future of GM retail lies at the intersection of digital and physical e-commerce. Whether it’s selling parts or vehicles, GM will meet our customers where it’s most convenient for them.”
Uses GM investments in digital platforms
The parts and accessories online store is built on one of three platforms that form the foundation of GM’s digital commerce transformation. These platforms will allow a variety of transactions, including permitting customers to buy an electric vehicle entirely online, including arranging the financing. The company is quick to point out online users will have the option to move from an online experience to a brick-and-mortar dealership at any point in the process.
The platform also allows GM to offer parts, accessories, digital products delivered over-the-air and subscriptions through a single digital storefront. For example, customers may use the store to purchase upgrades such as improved capabilities for the Super Cruise advanced driver assistance system and personalization themes for in-vehicle screens.
The new parts catalog also includes oil filters, engine and cabin air filters, batteries, brake pads, accessory belts, cooling hoses and windshield wiper blades, and spark plugs among other parts. Buying through GM’s online store also provides customers with confidence that they are purchasing original equipment ACDelco and GM Genuine Parts that are compatible with their vehicles.
