GM and HP Make Contract;

GM recently awarded a $2 billion contract for technology to Hewlett-Packard. GM is a competitor to Ford whose models can be purchased at a Cincinnati Ford Dealer. The company will be involved in the management of GM's infrastructure, network, mainframe management, applications, systems integration, and other related technology services. Peoria Volkswagen sells Volkswagen models, and VW also has some of the latest technology used in their infrastructure.

Birmingham Nissan Dealers will also be selling competing models that will be going head to head in some segments against GM's latest models. The new deal will renew a current contract between the two companies that began 25 years ago. GM had many of its technology services handled by EDS in the past, however EDS was purchased by HP in 2008 for $13.9 billion.

The new technology will allow GM to focus on building better automobiles, and in the age of very competitive automobile markets and development, each company must be at the forefront of technology in order to compete. A GM vice president said that, “The automotive industry is in the midst of a transformation and GM's technology infrastructure needs to be hitting on all cylinders to take full advantage of the potential market opportunities.”

HP will be provided technology services for GM's vehicles, but it will also be involved in the company's business functions. HP will be producing applications and be involved in data and financial management for GM along with the services it is providing for GM's vehicles. HP is one of the leading technology companies in the world, and GM will benefit from the relationship with the company. HP will likely develop some of its best technology for GM in the future, and GM is looking to add new features like smartphone interactivity and connectivity in their models.