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Can General Motors 'Pull an F-150' By Standardizing ADAS?

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Can General Motors 'Pull an F-150' By Standardizing ADAS?

Itay Michaeli, an analyst at Citigroup, gave an update of the automotive industry on Tuesday, saying that General Motors Company (NYSE: GM) can, "pull of an F-150," to increase their profits.

Michaeli's thesis is that, "GM might be uniquely positioned to pull an F-150 by standardizing ADAS ahead of competitors in a way that's profitable, differentiating and possibly brand redefining."

"Pulling a F150" refers to Ford Motor Company's (NYSE: F) decision to produce a fuel efficient aluminum truck years ahead of regulations. This has made Ford the de facto automotive leader in that category. General Motors by standardizing ADAS ahead of regulations can position itself in a similar way as the leader in the industry, gaining valuable market share ahead of its competitors.

General Motors is uniquely positioned to take the lead in standardizing ADAS because of its development of the OnStar/LTE platform in its automobiles. If General Motors teams up with Mobileye NV (NYSE: MBLY), whose advances in machine vision and deep learning are increasingly allowing cameras to perform both ADAS and basic automation tasks like traffic jam assist and adaptive cruise control, they can increase the value of their company.

General Motors Company is currently priced at $37.62.

Ford Motor Company is currently priced at $16.30.

Mobileye NV is currently priced at $36.26.

Latest Ratings for GM

DateFirmActionFromTo
Aug 2019MaintainsBuy
Jun 2019Initiates Coverage OnOutperform
Feb 2019Initiates Coverage OnBuy

View More Analyst Ratings for GM
View the Latest Analyst Ratings

Posted-In: Citigroup Itay MichaeliAnalyst Color Analyst Ratings Best of Benzinga

 

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