For Ford Motor Company (NYSE: F) investors, the exciting part of selling a truck used to be, well, selling the truck for the juicy margins that it hauled. Then the customer drove away, and everyone hoped they would return when it was time for another one. Ford increasingly wants the relationship to last beyond those purchases, and it could help change the narrative about operating in a low-margin industry by boosting the high-margin services Ford is hoping to grow. Software subscriptions and connected services give the automaker more ways to earn money after the initial sale, and as mentioned, these often come with much higher software-industry-like margins. Its latest results suggest that opportunity is becoming more than something management puts on an earnings presentation. Rival General Motors (NYSE: GM) offers an encouraging example of what it could become.
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