Ford's Next Growth Engine Could Already Be in Your Driveway

Ford is shifting its business model to focus on high-margin software subscriptions and connected services to supplement low-margin vehicle sales. The company reported 1.7 million active paid subscriptions (up 40% YoY) and record quarterly software-services revenue, despite a 6.6% decline in Q3 vehicle sales. This strategy mirrors General Motors' successful OnStar business, which generated over $800 million in Q3 revenue with $6.8 billion in deferred revenue, positioning both automakers to gradually transform from low-margin manufacturers into higher-margin service providers.